Exploring the business case for e‐procurement

Abstract

Purpose

Although e‐procurement has been adopted in many industries, the business case for this technology has only partially been explored in the literature. This paper aims to investigate, through a case study approach, the extent of the business case developed for e‐procurement adoption in three implementations.

Design/methodology/approach

The paper employs a case study method and examines three industrial firms through in‐depth interviews with managers involved in the projects. The cases were presented and explored individually, followed by identification of relevant drivers and problem factors.

Findings

The research identifies 18 drivers which can form the basis of a business case for e‐procurement. A further 17 problem factors are presented, which have the potential to militate the original case. It is apparent that the firms involved only developed a limited case for adoption and that there is a significant element of faith that the eventual results will justify the investment.

Practical implications

A framework of the business drivers for e‐procurement is introduced, in the form of a multi‐attribute hierarchy. This framework can assist managers to classify relevant issues in assessing and developing the case for e‐procurement adoption.

Originality/value

Whilst the literature offers theoretical benefits for e‐procurement, the paper provides managers and researchers with empirical evidence of the drivers for this technology and of the problems encountered in implementation.

Citation

Smart, A. (2010), "Exploring the business case for e‐procurement", International Journal of Physical Distribution & Logistics Management, Vol. 40 No. 3, pp. 181-201. https://doi.org/10.1108/09600031011035083