Optimizing Public Project Performance Using Principal Components of Digital Procurement Systems

<title>Abstract</title> <p>This study investigated the influence of digital procurement systems on public project performance using evidence from the Rwanda Quality Basic Education for Human Capital Development (RQBEHCD) project implemented in Rwamagana District, Rwanda. The research was motivated by the increasing adoption of e-procurement systems through Rwanda's UMUCYO platform and the need to understand how specific digital procurement dimensions contribute to successful project outcomes. The study focused on four key e-procurement dimensions: e-tendering, e-sourcing, e-payment and invoicing, and e-contract management, while project performance was assessed through cost efficiency, time performance, quality achievement, and stakeholder satisfaction. A quantitative cross-sectional survey design was employed using structured questionnaires administered to 85 procurement stakeholders and project personnel. To address multicollinearity among 41 e-procurement indicators, Principal Component Analysis (PCA) was applied, followed by Multiple Linear Regression (MLR) and Cluster Analysis (CA). PCA extracted ten principal components that explained 86.59% of the total variance, significantly reducing data dimensionality while preserving the underlying information structure. The regression results revealed that all e-procurement dimensions positively and significantly influenced project performance (p &lt; 0.05). E-payment and invoicing emerged as the strongest predictor (β = 0.3811), followed by e-contract management (β = 0.2640), e-sourcing (β = 0.1450), and e-tendering (β = 0.1254). The model explained 94.43% of the variation in project performance (R² = 0.9443). Cluster analysis further identified ten distinct e-procurement adoption typologies, demonstrating varying levels of digital procurement maturity among respondents. The findings confirm that integrated digital procurement systems significantly enhance transparency, accountability, efficiency, financial management, and stakeholder satisfaction, ultimately improving public project performance. The study recommends strengthening e-payment, e-contract management, and institutional capacity-building initiatives to maximize the benefits of digital procurement systems in public sector projects and support sustainable development outcomes in Rwanda and similar developing-country contexts.</p>