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| Analysis of the Relationship between Electronic Procurement and Performance of Manufacturing Firms in Uganda: Empirical Studies from Igara Tea Estate Company Limited in Bushenyi District
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Teddy Akakikunda, Alex Akankwasa, Miria Nangoma , Twesigye Nduhura
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Abstract:
The study investigated "the effect of Electronic procurement on organizational performance of manufacturing firms". The study was guided by three research objectives which were; to examine the effect of E-Data transmission on organisational performance of manufacturing firms in Uganda, to establish the effect of e-billing on organisational performance of manufacturing firms in Uganda, to explore the effect of e-sourcing on organisational performance of Igara tea estates company ltd, Bushenyi district. Igara growers tea factory, Bushenyi has registered declining profits as well as performance for the last five years due to poor electronic methods they employ. The methodology involved a cross sectional survey design was employed in this study. Both qualitative and quantitative approaches to data collection and analysis were employed in order to get an in-depth understanding of the phenomenon under investigation and to confirm completeness for instruments. The target study population of the study was 100 respondents while the sample size was 80 respondents comprising of the staff members and clients of Igara growers tea factory, Bushenyi district. The data collection instruments involved the use of questionnaires and Interviews. Data was presented and interpreted using frequency tables. The findings of the study revealed that; there is a significant positive relationship between the components of e-procurement namely e-data transmission systems, e-billing management and e-sourcing with the organizational performance. The researcher recommended that; Enterprise resources planning (ERP) systems in particular should be concerned with trying to integrate and co-ordinate the various internal functional areas in order to break down those functional boundaries and ensure decisions for areas like marketing, operations and financial decisions are all made using the same data. Customer Relationship Management systems can also be used to co-ordinate the supply chain as well as organisational performance by ensuring better sharing of information. In summary use of information technology in e-procurement is considered to be a driver of innovation strategy action.
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