FACTORS AFFECTING PUBLIC PROCUREMENT EFFICIENCY IN THE DIGITAL AGE

Abstract

This academic article aims to present and analyze the key factors affecting the efficiency of public procurement in the digital era, which serves as a strategic cornerstone for driving public administration mechanisms toward cost-effectiveness, transparency, and agility amidst the transition to digital government. Based on a comprehensive literature review and knowledge synthesis, the factors directly influencing procurement success in the current context encompass three major dimensions: the technological dimension, focusing on the stability and security of the electronic government procurement (e-GP) system; the human resource dimension, emphasizing the digital literacy and skills of procurement practitioners; and the regulatory dimension, requiring flexibility to accommodate digital workflows. However, current operations continue to face critical challenges, notably legal complexities and gaps in technological infrastructure readiness. Consequently, studying the factors influencing public procurement efficiency in the digital era is an urgent necessity in both academic and policy domains—particularly within the context of local administrative organizations, which operate in close proximity to citizens and manage substantial budgets. To bridge these knowledge gaps regarding administrative strategies and to offer a vital path for enhancing the e-GP system toward a sustainable and accountable digital government, this article proposes policy and operational guidelines for efficiency enhancement. These recommendations emphasize seamless data integration between the public and private sectors, the transition to smart procurement utilizing Artificial Intelligence (AI) to detect anomalies, continuous investment in human capital through proactive digital skills training, and the reform of procurement laws to ensure high organizational agility. Ultimately, these insights aim to help policymakers and practitioners optimize public procurement processes to effectively serve the public interest and foster sustainable national development in the digital age.