Public procurement is an essential strategic development instrument for promoting good governance and institutionalising the effective and efficient use of public resources, which eventually leads to greater levels of service delivery (Fourie & Malan 2020:2). On the other hand, Mpehle and Modugwa (2020:3) highlight that digital procurement is a web-based system that streamlines commercial transactions between organisations and provides purchasing, payment, ordering and handling solutions.

Procurement in SA incorporates abundant rules and regulations derived from the country’s National Treasury. The reformation of public procurement in 2003 aimed at promoting good governance principles and implementing a preference point system to achieve socio-economic goals (Selomo & Govender 2016:1). However, the reformation with its laudable policy framework is frequently undermined by a lack of compliance with the policy framework (Johnston 2018:52; Mhelembe & Mafini 2019:1). As procurement became central to SA’s system of delivering government services to the public, it became an instrument of strategic development for promoting good governance and institutionalising the effective and efficient use of public resources, which must eventually result in greater service delivery levels (Fourie & Malan 2020:1). However, the researcher posits that this conversion is necessary for institutions to optimise their business operations in Industry 4.0 dispensation.

The prescribed flow of government procurement currently in SA involves demand management, acquisition management, logistics management, disposal and supply chain performance management (National Treasury 2017). The objective of these elements is to provide high-quality services to the citizens. For any government to improve the economic development of its citizens and the country’s economic growth, it needs a good procurement system that will enable it to acquire goods and services effectively and efficiently (Mpehle & Mudogwa 2020:2). It is then important for the South African government to introduce digital procurement because the old traditional system is plagued by a lack of compliance, and therefore digital procurement is envisaged to promote transparency and faster turnaround time. Further, the research submits that the conversion is necessary for the government to optimise its procurement operations in Industry 4.0 dispensation.

The daily lives of citizens and the economy are being transformed by digital technologies. The rise of complicated technologies such as machine learning, blockchain and the IoT presents both legal and economic issues and opportunities. While the technological changes in the external business environment are eliciting various responses from supply chain and procurement actors in the public sector, the utilisation of Industry 4.0 technologies in procurement enables the enhancement of end-to-end procurement process (Koskin & Van Nguyen 2021). According to Tjahjono et al. (2017:1176), the evolution of information technology systems over the past three decades has affected every area of daily life. It is without a doubt that technology has affected the livelihood of people across the globe in one way or the other.

There is a debate that asserts that Industry 4.0 encompasses not only the integration of technology, but also the overall notion of how to obtain, distribute, utilise and organise data and resources to produce products and services in a faster, more cost-effective, efficient and sustainable manner (Piccarozzi, Aquilani & Gatti 2018). Admittedly, Naseem and Yang (2021) concede that Industry 4.0 is a forward-looking concept that provides a systematic approach for utilising emerging technology to revolutionise the existing production processes, transitioning from a machine-centric model to a digital production paradigm. The global coronavirus disease 2019 (COVID-19) pandemic influenced and disturbed all sectors of the global economy in 2020 and brought the realities of Industry 4.0 to light (Moloi & Salawu 2022:204). It is for that reason that the public sector must adjust to keep up with the pace of the private sector. The public sector cannot address its business needs in isolation as in many instances has to collaborate with the private sector. Therefore, the public sector must adopt technology to enhance its procurement processes.

The collaboration of IoT and cloud computing as indicated in the literature offers benefits that lead to cost savings through better resource management. Khan et al. (2020:3) allude that IoT and cloud computing enable real-time tracking of goods and materials across the supply chain. It can be argued that this enhanced insight allows procurement teams to detect and resolve obstacles, streamline logistics and guarantee punctual deliveries, leading to a more effective procurement process. The traditional Internet enables communication between a limited number of devices and humans, whereas the IoT integrates many interconnected ‘Things’ into a comprehensive network of computing intelligence without human intervention (Kumar, Tiwari & Zymber 2019:1). This can help businesses develop cutting-edge IoT-based goods and services. The integration of IoT technology, therefore, offers enterprises the ability to effortlessly expand their infrastructure to handle the increasing volume of data, hence facilitating the development of powerful market analysis capabilities (Mohungoo, Brown & Kabanda 2020). However, the integration of this technology in certain industries has presented several issues, such as the need for efficient data storage and administration, seamless data transmission between devices, ensuring security and privacy, and ensuring universal and widespread access (Dang et al. 2019:1). For this reason, the use of cloud computing technology is one potential solution that has the potential to address these difficulties.

According to Godavarthi et al. (2023:5), cloud computing is a significant catalyst for the emergence of novel business models across various industries. Although Dang et al. (2019:39) argues that an attempt by organisations to integrate it with IoT faces the challenge of obsolete infrastructure, Petla (2023:946) contends that there are network objects embedded with sensors and software that collect and communicate data over the Internet. Therefore, the obsolescence of the infrastructure is not a challenge, as cloud computing is mainly web-based and does not rely much on physical equipment.

For increased supply chain integration, IoT bridges the gap between the physical and digital worlds by synchronising the flow of information with the physical flow (Morssi, Elhusseiny & Hammad 2020:2879). On the other hand, cloud computing offers the advantageous capability to adjust computing resources in response to demand fluctuations, thus ensuring the sustained efficiency of market analysis operations, even during moments of heightened activity (Naseem & Yang 2021). Also, the IoT facilitates the integration of data into collaborative platforms, thereby guaranteeing that all stakeholders have access to the most current information during discussions pertaining to the needs and requirements (Ben-Daya, Hassini & Bahroun 2019). Moreover, Dang et al. (2019) submit that cloud-based platforms facilitate real-time cooperation among procurement teams, suppliers and stakeholders. In conclusion, the integration of cloud computing is essential in procurement as it enhances efficiency. Furthermore, the accessibility of this system enhances the efficiency of communication, promotes the sharing of data, and expedites the process of decision-making (Yengula, Sahoo & Goswami 2023:194). This is consistent with SA’s legal framework which seeks to enhance fairness, equitability, cost efficiency, transparency and competitiveness.

The first stage involves the collection of the data. The research for this article was conducted using secondary research methods to develop a digital procurement framework. The sources of data were drawn from journal articles, treasury regulations and legislation enacted by the South African government that were relevant to the procedures of government procurement. The procedure that was utilised for this study began with the search of key topics for this research on the database. To ensure the reliability of the results, only relevant topics with sufficient data to produce significant results were included in the final analyses. The stage of data collection was thoughtfully conducted by searching the titles, guaranteeing a selection of precise journals. During this process, certain papers were excluded to ensure that only relevant papers are considered that will have an impactful contribution to what the study wants to achieve. The exclusion criteria included incomplete papers, lacking abstract and full-text, and not fully aligned with the research topic and objectives. Furthermore, the researchers excluded papers that were not written in English. To detect the most appropriate and compelling articles, the researchers explored the databases by complying with rigorous selection criteria. On these databases, a literature search was carried out with the keywords ‘digital procurement’, ‘Internet of Things’, ‘cloud computing’ and ‘public sector’. The search was limited to the period between 2017 and 2023. The preliminary search conducted in the databases is presented in Table 1.

The total number of papers retrieved was 256 papers. After removing the duplicates, a total number of 94 papers were used to answer the research questions posed in this study. Also, four legal documents that govern South African public procurement were studied to link constructs, and themes with legal provisions.

The second stage requires that the authors engage with the data by reading and re-reading the data to become deeply immersed and familiarised with its content under study (Braun & Clarke 2006). This stage was critical for this study to present a review of literature that is related and relevant to South African public sector procurement. The literature reviewed looked at the general procurement in the public sector across the globe and subsequently reduced to the South African context. The study also carefully examined the legislation that governs public procurement in SA. This integration considered legislation’s four key documents namely, the Constitution which is the supreme law, and primary legislation which is PFMA, PPPFA and NT regulations which serve as complementary legislation.

The third stage deals with categorising the elements of information that are potentially meaningful segments to reveal information relevant to address the research objectives (Merriam 2009). This stage included the use of content analysis that was conducted on data collected from Scopus and Web of Science databases whereby the journal articles that were extracted from these databases were analysed. To represent information accurately, the constructs which are technological factors were categorised as enablers, the outputs which are the benefits that these technologies bring were classified as outputs, and the legal provisions were named guidelines. These will be presented later on the diagram of the conceptual framework.

According to Braun and Clarke (2006), this stage entails searching for themes that are coherent and meaningful in the data and also defining the nature of each theme in the existing literature. Qualitative data were analysed using qualitative thematic approaches to discover themes and constructs within the qualitative data. The constructs that were used are cloud computing and IoT, while the key themes identified are presented in Table 2.

This stage involves consolidation and reducing data to make a meaningful contribution by linking interrelated elements in the data. Thus, in this section, the researcher linked the construct with the themes to provide a meaningful data presentation. This conceptualisation will later be used to develop a proposed initial framework based on the results of the content analysis categories. Table 3 depicts the conceptualisation of the constructs and the themes.

Based on the content analysis, this study proposes a digital procurement framework for the South African public sector. As highlighted earlier, the result of the content analysis revealed three categories, namely enablers, benefits and guidelines. The legal factors are the policy provisions prescribed by the SA government to guide procurement officials on what legal issues are to be considered when undertaking the procurement process. These legal documents include Section 217 of the Constitution of SA, PFMA, PPPFA and NT regulations. Enablers, on the other hand, are technological factors availed by Industry 4.0 to improve public procurement. These are IoT and cloud computing. The benefits that are discussed under the analysis of themes are outputs derived from the technological factors taking into consideration legal factors that govern procurement processes in SA. Figure 1 presents a proposed digital procurement framework for the South African public sector based on IoT and cloud computing.

The following sections discuss the elements of the construct identified in the proposed digital procurement framework.

According to Godavarthi et al. (2023:5), there is an incomparable scalability that cloud platforms offer to enterprises. This aids them to easily alter the scale of their operations following fluctuating demands. In agreement, Petla (2023:946) confirms that there are excellent scalability solutions that are offered by cloud computing to assist the public sector to work remotely. Scalability refers to the ability of organisations to alter their systems or operations to address fluctuations in demands. The integration will be made possible by the IoT which connects the physical and cyber world. This unrivaled scalability offered by both cloud computing and IoT provides opportunity for adjustment of the procurement system to address the ever-changing demands of the stakeholders. Further, scalability enhances other factors of the procurement framework towards an overall improvement of the procurement system.

The concept of cost efficiency in public procurement refers to the optimum result attained when all applicable costs are taken into account during the entire procurement process. One of the benefits of implementing digital procurement is reductions in transaction costs that emanate from less paperwork, decreased mistakes and a more effective procuring process (Addo 2019:44). In consistence with Section 217 of the Constitution and PFMA, cloud computing offers cost-saving benefits for enterprises by abolishing the need for large-scale data centres and servers (Godavarthi et al. 2023:5). The traditional procurement technique incurs several charges, including the placement of advertisements in newspapers, the printing costs of tender documents, the expenses associated with travelling for bid assessment committee meetings, and other relevant costs. The introduction of IoT and cloud computing in public procurement will reduce these costs at the establishment of digital procurement.

Sonavale and Londhe (2019:4) assert that it is imperative to ensure the seamless integration of relevant systems and procedures to enhance its operation. Consequently, Addo (2019:45) highlights that the implementation of IoT and cloud computing will result in enhanced collaboration and integration within the supply chain. Automation of the system does not necessarily mean a complete elimination of humans in the procurement process. Thus, through IoT, all things cyber-physical systems (CPS) collaborate to make the procurement process seamless.

In South African public procurement, the concept of transparency refers to a clear and competitive procedure. According to Mathiba (2020:642), this denoted a procurement process that is open to public scrutiny and should be regulated by rules of accessibility to any qualifying bidder. Addo (2019:55) argues that easy access to information within digital procurement allows all stakeholders to directly obtain information linked with each tender and award process. Transparency can be ensured as both the evaluation and awarding processes are conducted online. According to Mpehle and Mudogwa (2020:3), the implementation of digital procurement processes has been found to have a beneficial impact on curbing corruption. This includes enhancing cost-effectiveness and accountability, while simultaneously reducing instances of collusion among suppliers. The utilisation of IoT devices and cloud computing facilitates the establishment of a complete record of events undertaken throughout the procurement process (De Vass, Shee & Miah 2018:3).

A digital procurement system will be a breakthrough in the government bidding system, acquitting the process from exploitation and aggravations (Mpehle & Mudogwa 2020:3). Addo (2019:56) agrees that the attainment of openness and accountability coming from the implementation and adoption of the technology greatly addresses corruption in public procurement. Accountability that has been achieved by technology has been evident in metropolitan areas such as the City of Tshwane and the City of Cape Town which have already made strides in harnessing Information Communication Technology (ICT) to ensure access to the general citizenry. Thus, it can be inferred that implementing this measure will significantly mitigate unethical behaviours and promote social responsibility on the part of the government.

In its capacity as a developing nation, the South African government is obligated to facilitate accessible business transactions for all suppliers, with a particular focus on historically disadvantaged groups. Therefore, by digitalising the procurement system, even small enterprises will find it simpler to gain entry to economic prospects (Mpehle & Mudogwa 2020:5). According to Mahat et al. (2022:347), digital procurement implementation in government not only allows contracting authorities to digitally acquire the goods or services, it further allows service providers to exhibit their products on the web. Inclusive procurement is consistent with the PPPFA, which aims to ensure that previously disadvantaged citizens are considered when procurement opportunities arise. In agreement, Mpehle and Mudogwa (2020:5) conclude that the digitalisation of the procurement system would facilitate the accessibility of economic opportunities, even for small businesses.

The main aspect of security in cloud computing is its extensive use by enterprises, as it offers convenient and immediate network access to a vast array of customisable processing resources (Godavarthi et al. 2023:1). According to Mukwawaya, Emwanu and Mdakane (2018:1589), Industry 4.0 technologies in a product-oriented industry can customise and design them according to the preferences. Conversely, in the service-oriented sector, this can be attributed to the customisation of services to meet demand. Therefore, the South African public sector must harness Industry 4.0 technologies to improve its procurement processes.

In a recent study conducted by Bou-Ghanem (2021) in Lebanon, it was found that the government has taken steps to address the issue of transparency by implementing a public procurement law that specifically regulates digital procurement. According to Mathebula (2021), China, which is SA’s partner in the Brazil, Russia, India, China and South Africa (BRICS) alliance, is among the countries that have embraced technology and achieved notable success in this domain. Moreover, a recent study conducted by Amron et al. (2019) in Malaysia demonstrated that the Malaysian government successfully achieved substantial cost savings, amounting to 50% of the initial expenses associated with the establishment and upkeep of traditional data centres.

To effect positive change, the South African government should draw lessons from the successful experiences of other nations in the realm of technological integration into their administrative procedures. These advantages will guarantee that all public procurement activities and relevant parties are equipped with electronic access to comprehensive data and information, hence facilitating the detection and mitigation of fraudulent practices. It is therefore recommended that the South African government harness the Industry 4.0 technology to enhance process efficiency in procurement.

Furthermore, in this new era characterised by a complex and dynamic environment and a competitive business marketplace, digitalisation has emerged as a new phenomenon that affected several aspects of life all over the world. The dispensation of digital transformation has seen governments around the world increasingly recognising the need to embrace technology to enhance efficiency, transparency, and accountability in their public procurement processes. South Africa, a nation with a diverse and growing economy, is no exception. Thus, the adoption of digital processes is recommended.