Authors: Victor Mzuguno (Institute of Accountancy Arusha, Tanzania) and James James Makula (Institute of Accountancy Arusha, Tanzania)
Abstract: The adoption of Government Electronic Procurement systems, such as NEST, plays a critical role in enhancing efficiency, transparency and accountability in public procurement processes. This study examined the factors influencing NEST adoption in Mbeya City, Tanzania, focusing on suppliers and procurement professionals. A deductive research approach was employed, utilizing a cross sectional survey design to collect empirical data from a sample of 157 respondents, drawn from the target population of 987 individuals. The study applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the relationships between key adoption factors, including legal framework, performance expectancy, relative advantage, and organizational support. Findings indicate that technological readiness, organizational support and resource availability positively influence NEST adoption, whereas legal constraints negatively impact its implementation. The study underscores the need for policy adjustments to enhance flexibility in regulatory frameworks, ensuring a conducive environment for digital procurement adoption. These insights provide valuable recommendations for policymakers, procurement practitioners, and technology providers to enhance NEST adoption and optimize e-procurement efficiency in Tanzania’s public sector.