Impact of Electronic Procurement on Institutional Performance: Evidence from the President’s Office – Ministry of Finance and Planning, Pemba Island

This study examined the effect of electronic procurement (e-procurement) on institutional performance at the President’s Office – Ministry of Finance and Planning in Pemba Island, Zanzibar. The research was guided by the Technology Acceptance Model (TAM) and the Resource-Based View (RBV) theory to understand how technological perceptions and organizational resources influence institutional efficiency, transparency, and cost-effectiveness. Cross-sectional research design was employed, and data were collected through structured questionnaires administered to 85 respondents selected from key departments, including procurement, finance, ICT, and administration. Quantitative data were analyzed using descriptive statistics and a multiple regression analysis model, which assessed the relationship between e-procurement adoption and institutional performance. The results revealed that e-procurement has a positive and statistically significant effect on institutional performance, particularly in enhancing operational efficiency, transparency, cost-effectiveness, and fairness. However, moderate challenges were identified in user satisfaction and staff productivity, indicating the need for continuous user training and system improvement. The study concludes that e-procurement serves as a strategic tool for strengthening governance and performance in public institutions. It recommends that the government of Zanzibar enhance ICT infrastructure, institutional capacity, and continuous system evaluation to maximize the benefits of e-procurement implementation.