Examining the use of eprocurement in Nigeria's construction sector

Numerous studies have suggested that eProcurement is increasingly adopted in various industrial sectors; however, its application remains limited within the Nigerian construction industry. The majority of construction organisations are failing to adopt technological tools that enhance the transparency of the tendering and contracting processes in eProcurement. Consequently, the adoption of e-procurement among operators in the construction sector faces challenges that necessitate improvements in their practices. The literature highlights the significance of a nationally developed eProcurement framework; however, Nigeria has yet to establish an eProcurement adoption framework that identifies nationwide barriers and solutions. This research aims to investigate the factors contributing to the lack of non-eProcurement adoption in order to address the issue.

This research investigates the factors that support and hinder the use of electronic procurement in the Nigerian construction industry, with a view to proposing reasonable solutions. In light of this, a framework was created with the purpose of enhancing electronic procurement. This framework will involve the identification of the drivers and hurdles to the utilisation of electronic procurement, as well as the mitigation activities that are necessary to overcome these barriers. Moreover, the selection of a particular developing nation will make it possible to get a comprehensive understanding of the procedure and the circumstances surrounding the use of electronic procurement; hence, Nigeria was chosen for the research.

This study utilises a mixed research method approach, incorporating a questionnaire survey and focus group discussions for comprehensive gathering and analysis of data. Data from the focus group discussion and survey were gathered independently in Nigeria between September 2023 and April 2024. The gathered quantitative data underwent descriptive analysis and was ranked through a relative importance index analysis. The qualitative data underwent analysis through a thematic analysis technique to uncover the themes and patterns present.

The findings indicate that there is a constrained use of eProcurement tools within construction organisations in Nigeria. It was discovered that six significant factors, including unclear eProcurement benefits, insufficient national eProcurement infrastructure, a shortage of skilled personnel, substantial investment costs for eProcurement-related tools, organisational culture, and inconsistent electricity supply, affect organisations’ adoption of eProcurement.

Furthermore, enhanced efficiency, transparency, streamlined project control, better information management, and time savings were identified as the primary advantages of eProcurement for organisations within the Nigerian construction industry. Additionally, six significant barriers were identified, specifically financial, organisational, environmental, technical, and socio-cultural, which represent broad categories of factors influencing the use of eProcurement.

Meanwhile, the findings uncovered the underlying causes of each barrier and highlighted the interconnections among the primary barriers. Strategies to address the effects of the obstacles and their underlying causes were also recognised. The analysis indicated that certain empirical findings mirror those observed in comparable contexts documented in the literature for other nations.

A framework was constructed and offered at the conclusion of the thesis, intended to facilitate viable strategies for overcoming the identified constraints. The suggested framework aims to assist companies in the construction sector in assessing their strengths in eProcurement adoption (drivers) and in mitigating the effects of obstacles that hinder eProcurement adoption. It is anticipated to assist construction-related professional organisations, governmental entities, and academia by clarifying their role in promoting the use of eProcurement.