Abstract
This study examined the effects of e-procurement systems on the performance of Metropolitan, Municipal, and District Assemblies (MMDAs) in Ghana. This study focuses on the large number of MMDAs in the Ashanti Region. Despite a growing body of e-procurement literature in Ghana’s public sector, no prior study has specifically examined its effect on MMDA performance, representing a critical gap in local governance digitalization research. This study employed a quantitative approach, combining descriptive and explanatory research designs. A purposive sampling technique was used to select 207 procurement personnel. This study’s survey instrument achieved a Cronbach's alpha of 0.842. The multivariate regression model employed explained 82.5% variance in MMDA's performance outcomes. Findings demonstrate that e-requisitioning, e-sourcing, and e-payment significantly enhance MMDA performance in cost reduction, improved efficiency, and customer satisfaction. However, e-ordering demonstrates an insignificant impact. Findings indicate that e-procurement systems at MMDAs in Ghana reduce holding and ordering costs, decrease tendering cycle, and improve the management of procurement information. Key challenges of e-procurement systems, including maintenance costs, system complexity, cybersecurity vulnerabilities, political interference, and inadequate technical capacity, are identified. This study concludes that while e-procurement revolutionizes local government procurement, sustainability requires addressing infrastructure deficits, strengthening regulatory frameworks, implementing robust cybersecurity protocols, and developing comprehensive capacity-building programs. This study was limited to MMDAs in the Ashanti Region of Ghana. However, it provides empirical evidence to address critical gaps in local governance e-procurement practices in developing countries, especially Ghana.
