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Effect of e-procurement implementation on the effectiveness of rwandan hospitals a case of Kabaya district hospital (2019- 2020)


par Rukundo Paterne
University of Kigali - Master's degree in Science of Procurement and supply Chain Management 2021
  

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Table 4.4: Correlation between Electronic submission of bids and effectiveness of public tendering at Kabaya District Hospital

 

Electronic submission of bids

Effectiveness

Electronic submission of bids

Pearson Correlation

1

.839**

Sig. (2-tailed)

 

.044

N

24

24

Effectiveness

Pearson Correlation

.839**

1

Sig. (2-tailed)

.044

 

N

24

24

Source: Survey, August 2021

According to Correlation Table 4.4, Electronic submission of bids strongly correlates with the effectiveness of public tendering at Kabaya District Hospital (r=.839 with a p value of 0.044, which is less than 0.05). This indicates that the relationship between Electronic submission of bids and the effectiveness of public tendering at Kabaya District Hospital is significant, implying that having Electronic submission of bids has the potential to increase the effectiveness of public tendering at Kabaya District Hospital.

The study corroborates Flynn et al. (2010) Moreover, companies using e-procurement system reported that they achieve saving up to 42% in purchasing transaction cost as a result of less paperwork, which enabled transaction processes to be less prone to errors, leading to more efficient purchasing.

Table 4.5: Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.839a

.802

.743

1.58439

a. Predictors: (Constant), Effectiveness

Source: Survey, August 2021

The model summary was used to present the coefficient of determination, which explained how well changes in the independent variable explained variations in the dependent variable. The independent variable (Electronic submission of bids) has effect of 80.2% on effectiveness of public tendering at Kabaya District Hospital as represented by R Square.

The coefficient of correlation value of 0.839 indicates that there was a positive strong correlation between independent and dependent variable. The findings support prior findings Berger & Zeng (2006). Any good e-procurement software system today is designed to greatly reduce effort and time required to complete purchasing transactions by eliminating traditional paper chain of payment reconciliation, approvals, requisitions and receiving. The key features of e-procurement approaches enables users to find an item in an electronic catalog, create a requisition, route the order requisition for approval, create and transmit the order to vendors, and also help to automate the invoicing and payment process.

Table 4.6: ANOVAa on electronic submission of bids and effectiveness of public tendering at Kabaya District Hospital

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

31.107

2

15.553

19.042

.044b

Residual

55.227

21

2.629

 
 

Total

86.334

23

 
 
 

a. Dependent Variable: Electronic submission of bids

b. Predictors: (Constant), Effectiveness

Source: Survey, August 2021

The findings in Table 4.6 indicate that the overall model was significant. The overall model was significant as shown by a calculated F statistic of 19.042 (p value 0.044). The calculated F statistics was large than the critical F statistic. The findings indicated that the variable electronic submission of bids are good predictor of effectiveness of public tendering at Kabaya District Hospital, hereby the alternative hypothesis of the study: H1a:Electronic submission of bids has effect on effectiveness of public tendering at Kabaya District Hospital was confirmed.

The findings support by Eadie et al. (2007), argue that e-procurement allows sections of electronic documentation to flow through the supply chain; it improves the speed of returns and subcontractor price visibility. He further notes that since it is easier to communicate requirements in a quicker more accessible manner, it will result in a better understanding of requirements and due compliance besides allowing clients to gauge the state of the market by seeing how much interest is shown in the tender.

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