Application of E-Procurement on Banking in Abuja, Nigeria: A Study in Business Sustainability
Electronic procurement system continues the trend of reducing transaction costs by automating processes, replacing human labor with information technology. The capability to uninterruptedly advance functions, procedures and be creative in business has become an issue not only of innovativeness but eventually for business continuity and survival. This has been extended to the challenge in determining the influence of e-procurement on the purchasing functions in the banking activities. The objective of the study is to assess the application of e-procurement on banking industry and proffer recommendation for business sustainability. The study adopts multi-stage sampling techniques to obtain the sample of 25 banks from the population of 55 different banks. First bank (5) UBA (5) Access bank (5) Zenith bank (5) and FCMB (5) and administered the questionnaire in Abuja metropolis. Multiple regression analysis was performed to see if the independent factors of operating cost, operation efficiency and e-procurement have any effect on banking performance. The findings revealed that e-procurement improves operating effectiveness in banking activities. The study concluded and recommended that for e-procurement to become effective and important supply chain, top management need to adopt the use of e-procurement in banking sectors in order to reduce the negative perception or error and enhance employee productivity. Keywords: E-Procurement, Business sustainability, Banking activities, Liquidity, Business operation, Operating cost..