Employee Performance in Electronic Procurement System Utilization: The Effects of Competence, Leadership Style, and Technology Acceptance

Abstract

Digital transformation in public procurement requires employees to use electronic systems effectively. This study examines the effects of employee competence and leadership style on employee performance and the mediating role of technology acceptance. A quantitative survey was conducted among 110 employees involved in procurement activities at the Ministry of Villages and Development of Disadvantaged Regions of the Republic of Indonesia. Respondents were selected through simple random sampling, and the data were analyzed using Partial Least Squares Structural Equation Modeling with a reflective-reflective hierarchical component model. Employee competence positively affected performance (β=0.299; p=0.001) and technology acceptance (β=0.557; p<0.001). Technology acceptance positively affected performance (β=0.413; p<0.001). Leadership style positively affected technology acceptance (β=0.264; p<0.001) but had no significant direct effect on performance (β=-0.114; p=0.059). Technology acceptance partially mediated the competence-performance relationship and fully mediated the leadership-performance relationship. The findings demonstrate that electronic procurement performance improvement requires integrated competency development, leadership support for digital change, and stronger technology acceptance