Electronic procurement practices and supply chain performance the moderating role of supplier involvement in Ghanaian construction firms

Abstract

The construction sector is increasingly challenged by inefficiencies in procurement and coordination across its supply chains, leading to delays, cost overruns, and reduced competitiveness. Digital transformation through e-procurement, combined with strategic supplier involvement, has been proposed to address these challenges. This study examines the impact of e-procurement practices and supplier involvement on supply chain performance within the construction industry. Adopting a quantitative research approach with a cross-sectional survey design, data were collected using a structured, close-ended questionnaire administered to a sample of 277 construction firms in good standing, selected through a simple random sampling technique. Data analysis was conducted using both descriptive and inferential statistics, applying SPSS for preliminary analysis and Partial Least Squares Structural Equation Modeling (PLSSEM) for hypothesis testing. The results indicate a significant positive composite effect of e-procurement practices on supply chain performance, with individual components e-sourcing, e-negotiation, and e-evaluation contributing meaningfully to performance outcomes. Supplier involvement also demonstrates a positive and statistically significant effect, and moderation analysis shows that supplier involvement strengthens the relationship between e-procurement practices and supply chain performance. Additionally, moderated mediation analysis reveals significant indirect effects via esourcing and e-evaluation, though the effect via e-negotiation is not supported. The findings underscore the importance of integrating digital procurement tools with supplier collaboration strategies to enhance supply chain effectiveness in the construction sector. The study recommends that construction firms institutionalize eprocurement practices and deepen supplier partnerships as part of their long-term strategic initiatives to improve operational efficiency and competitiveness.