Assessment of e‐procurement auction with a balanced scorecard

Abstract

Purpose

The purpose of the paper is to assess success factors associated with e‐procurement auctions. The impacts of e‐procurement auction success factors on the four indicators of the balanced scorecard are investigated.

Design/methodology/approach

A survey approach is used to measure the constructs in the proposed model. Respondents were selected from three sectors: private, public, and government organizations using judgment sampling. Data are collected from at least two respondents from purchasing personnel in the e‐procurement user firms. At least one of the respondents is in a managerial position. The sample size is 186, representing 20.4 percent from private enterprises, 33.3 percent from public enterprises, and 46.3 percent from government agencies.

Findings

The survey results show that organizational learning of e‐procurement is influenced by service capability, good governance intention, management support policy, and organizational readiness factors. Service capability and organization learning of e‐procurement influence e‐procurement process improvement. Employee satisfaction can be determined by management support policy and e‐procurement process improvement. Employee satisfaction has the strongest positive impact on financial cost improvement. Management support policy has a negative impact on financial performance improvement. Trust in e‐procurement online intermediaries has no impact on the four measures of the balanced scorecard.

Originality/value

The study contributes to the literature by using the four balanced scorecard indicators to measure the success of e‐procurement to assist organizations to assess performance in terms of organizational learning, internal process improvement, employee satisfaction, and the financial benefit of e‐procurement.

Citation

Rotchanakitumnuai, S. (2013), "Assessment of e‐procurement auction with a balanced scorecard", International Journal of Physical Distribution & Logistics Management, Vol. 43 No. 1, pp. 39-53. https://doi.org/10.1108/09600031311293246