A Structural Equation Model of MIS Adoption, Procurement Practices, and Organisational Performance in Public Institutions in The Upper West Region of Ghana

Abstract

The systems in which organisations fail in developing countries are a combination of broken information systems, slow procurement procedures, and poor digital transformation. In this paper, the relationship between the adoption of Management Information Systems (MIS), procurement processes, and organisational performance in public institutions within the Upper West Region of Ghana is examined. Structural Equation Modelling (SEM) is used to examine the structural relationships. The study was based on Resource-Based View (RBV) and Technology–Organisation–Environment (TOE) and used a quantitative cross-sectional survey with 312 respondents selected using the Yamane sampling formula from the public sector institutions. To validate the measurement model, Confirmatory Factor Analysis (CFA) was carried out, and to test five hypothesised relationships, SEM was used. The Structural model showed a very good fit to the data, with a Comparative Fit Index (CFI) of 0.948 and a Root Mean Square Error of Approximation (RMSEA) of 0.046, indicating that the model is fit for hypothesis testing. The findings show that the use of MIS has a high positive impact on procurement practices and organisational performance. In addition, the relationship between MIS adoption and organisational performance is partially mediated by procurement practices. The study offers a validated structural model and the linkages between digital information systems, procurement transformation and institutional performance in a marginal Sub-Saharan African context. The results provide both theoretical and empirical knowledge in the areas of digital governance, public procurement reform, and organisational performance, and provide evidence for the strategic use of MIS to improve public sector effectiveness.