Critical Success Factors (CSFs) for e-Procurement Adoption in the Nigerian Construction Industry

Abstract

Previous research works on the integration of e-Procurement technologies in the construction process in Nigeria showed that it has been slow and low. However, there are few empirical studies on the duration for which it has permeated the construction industry, the actual proponents and the metrics that can engender successful integration of e-Procurement technologies, applications, and tools in the construction procurement process, especially in a developing country like Nigeria. The study was aimed at evaluating the critical success factors (CSFs) for e-Procurement adoption in the Nigerian construction industry. The study was carried out in the six geo-political zones in Nigeria using a survey research design. Construction stakeholders were selected using purposive and random sampling techniques. A total of 1092 questionnaires were retrieved in this study, but the data of 759 actual users of e-Procurement systems were analyzed in this study using descriptive statistics and principal component analysis (PCA). An assessment of the duration users have been participating in the e-Procurement environment revealed that most Quantity Surveyors have been exposed to the use of e-Procurement technologies for over 10 years. A large proportion of the construction stakeholders picked up the use of the technology within the last 5 years. Further analysis showed that contracting firms have the largest participation in the use of e-Procurement systems. The study also revealed that construction stakeholders perceived the availability of reliable, affordable, and fast Internet services as the most critical success factor for the adoption of e-Procurement technologies. The critical success factors (CSFs) were further classified into management support for physical infrastructure, and human factors and characteristics of the technology. The study showed that these critical success factors (CSFs) are crucial for the adoption of e-Procurement systems in the Nigerian construction industry. The study recommended that there is still a need for increased awareness of the e-Procurement tools and technologies and the benefits that are accrued from their use among public sector construction participants. This will in turn influence the provision of the required information and communication technology (ICT) physical infrastructure and formulation of appropriate policies and standards for successful e-Procurement integration in the Nigerian construction industry.