The Influence Of Organizational Factors On The Efficiency Of Local Government Procurement Processes Through The Effectiveness Of E-Catalog Version 6

Abstract

The government introduced the Electronic Catalog (E-Catalog) Version 6 as a tool to digitize the procurement of goods and services within local governments; consequently, the success of its implementation depends heavily on the readiness of various organizational factors. Unfortunately, prior research has rarely positioned system implementation effectiveness as a link between organizational factors and procurement process efficiency, leaving the causal mechanisms empirically unmapped. This study analyzes the influence of human resource competence, digital infrastructure, internal organizational policies, and inter-unit coordination on the efficiency of goods and services procurement—both directly and through the mediating role of E-Catalog Version 6 implementation effectiveness—within the Tebing Tinggi City Government. A quantitative approach utilizing path analysis was employed. Likert-scale questionnaires were distributed to 90 officials involved in the procurement process—selected via proportionate stratified random sampling from a population of 116—and the data were processed using Jamovi software (version 2.7). Internal organizational policies (β = 0.251; p = 0.016) and inter-unit coordination (β = 0.380; p < 0.001) were found to significantly influence the effectiveness of E-Catalog Version 6 implementation, whereas human resource competence and digital infrastructure did not. In turn, the effectiveness of E-Catalog Version 6 implementation significantly influenced procurement efficiency (β = 0.671; p < 0.001). None of the four organizational factors had a direct effect on procurement efficiency; instead, they exerted a significant indirect effect through full mediation, with mediation magnitudes ranging from 75.3% to 94.4%. The effectiveness of digital system implementation serves as the central mechanism bridging organizational factors and procurement efficiency. Therefore, the strengthening of internal policies and inter-unit coordination should be directed toward enhancing the effectiveness of system implementation, rather than merely increasing organizational capacity in a fragmented manner.