An Assessment of the Performance of Small and Medium Enterprises in Developing Countries Based on Automated Procurement Systems and the Dynamic Capabilities Theory

Abstract

The main objective of the study was to carry out an assessment of the performance of SMEs in Lusaka, Zambia, based on automated procurement systems and Dynamic Capabilities Theory. The research objectives were aimed at finding out the role of e-tendering, e-ordering and e-logistics on organizational performance. The study was carried out in Lusaka Central District of Lusaka Province. The study adopted a descriptive research design. The study sample comprised 400 respondents and adopted the simple random sampling method. To carry out this study, a structured questionnaire was developed and pre-tested. It contained close-ended questions. Questionnaires were distributed to the respondent and 14 days were given to respondent to complete questionnaires before collection. Questionnaires were used as the main tools for collection of primary data and were delivered to the respondents directly with the guidance of the principal researcher and picked later at the agreed date. Data analysis involved cleaning, sorting, coding and keypunching of raw data collection from the field and processing for purposes of interpretation were analysed via Statistical Package for Social Science version 28 (SPSS) analysis software. Furthermore, quantitative data findings were presented using descriptive statistical tools like graphs, tables and other measures of central tendency. An analysis of the first research variable regarding e-tendering revealed that it has a significant effect on organizational performance with a P -value of 0.000. The second research variable regarding e-ordering was not supported and proved to not have an effect on organization performance and indicated a P -value of 0.48. An analysis of the last research variable regarding e-logistics revealed a huge significance between e-logistics and organizational performance and the analysis indicated that the performance of SMEs relies on e-logistics with a P -value of 0.000. The study recommends that SMEs enhance system integration for transparency, cost reduction, resource management and flow of information, leverage technology, and facilitate training.