E-Procurement Adoption, E-Marketplace Participation and Firm Performance: A Study of Manufacturing Companies in Cameroon

Abstract

The study sought to examine the relationship between E-procurement adoption, E-marketplace participation, and performance of manufacturing companies in Cameroon. The study examined a population of 1,130 manufacturing companies in Cameroon and using the simple random sampling method, a sample size of 295 manufacturing companies was selected using the Yamane’s formula. Data was analyzed using descriptive statistics, correlation and regression analysis methods. In order to establish the mediating role of E-marketplace participation in the relationship between e-procurement adoption and firm performance, a Sobel test was conducted. Evidence from the study found a strong positive association between e-market place participation and firm performance (r = 0.433^**, p <0.01). Meaning that an increase in e-marketplace participation leads to enhanced firm performance. There is a significant positive association between procurement adoption and firm performance (r = 0.304^**, p <0.01). Implying that any positive change in e-marketplace participation is related to a positive change in firm performance. E-marketplace participation appears to be a stronger predictor variable of firm performance (Beta = .506, sig. = .001) than e-procurement adoption (Beta = -.093, sig. = .533). Also, E-marketplace participation plays a partial mediating role in the relationship between e-procurement adoption and firm performance (β =.449 P=.000, Sobel test =16.645). Also, findings indicate that the independent variables positively predict 17.3% of the variations in strategy implementation in firm performance in manufacturing companies in Cameroon. The findings of this study can help management to prioritize and enhance both e-procurement adoption and e-marketplace participation to boost overall firm performance, as these factors are interconnected and positively impact business outcomes. For optimal results, firms should recognize the complementary nature of e-procurement and E-marketplace participation, emphasizing the need to effectively engage in E-markets alongside adopting e-procurement practices to drive improved performance. Firms in the global perspective are always in the lookout for new and better opportunities and strategies that can enhance their firm performance. However, in a developing country like Cameroon, manufacturing companies continue to register a deteriorating performance. This study contributes to research and practice given that it provides insight on the challenges manufacturing companies are facing and the best strategies that can be adopted to mitigate such challenges such as the adoption of e-procurement technologies and participation in e-market places.