With ever‐increasing competitive pressures, growing numbers of firms use electronic procurement (e‐procurement) in an attempt to reduce costs and increase profitability…
With ever‐increasing competitive pressures, growing numbers of firms use electronic procurement (e‐procurement) in an attempt to reduce costs and increase profitability. Academicians and practitioners alike agree that one of the most important benefits of e‐procurement is its ability to facilitate integration within the firm and across the supply chain. However, there is much to be discovered about the prevalence of actual implementation of e‐procurement. The purpose of this study is to empirically examine the extent to which firms operating in diverse industries use nine different e‐procurement tools that differ in their ability to facilitate supply chain integration. The survey data were provided by a sample of 142 members of the Institute for Supply Management (ISM). Factor analysis revealed that the group of nine e‐procurement tools could be categorized into two types: basic, single‐process tools and integrative tools. A t‐test of the mean differences between each type of e‐procurement tool revealed that firms used basic, single‐process tools to a greater extent than they used integrative forms of e‐procurement. To further explore firms’ use of e‐procurement, we attempted to ascertain whether the industry in which a firm operates impacts use. Logistic regression revealed that firm sector has an effect on the use of integrative eprocurement tools, with firms operating in the petroleum and the transportation equipment sectors being less likely to use them than their manufacturing counterparts. These findings are important, as previous research indicates that effective supply chain integration is associated with improvements in production planning, inventory management, distribution, and overall supply chain performance.
The purpose of this research is to empirically investigate the role of firm size in the use of e‐procurement applications that vary in their ability to facilitate supply…
The purpose of this research is to empirically investigate the role of firm size in the use of e‐procurement applications that vary in their ability to facilitate supply chain integration.
The sample was drawn from members of the Institute for Supply Management (ISM). Purchasing professionals employed in 33 different industries completed a self‐administered questionnaire.
A total of 128 useable surveys were received. The data revealed a significant relationship between firm size and e‐procurement application. Specifically, larger firms were more likely to use integrative types of e‐procurement.
The study was limited in that it excluded purchasing professionals employed in the service sector. In addition, it only focused on the relationship between a single variable and e‐procurement application.
This research provides support for studies that suggest that firm size is related to IT use. In addition, it tests the framework developed in a previous research study conducted on supply chain IT. Finally, previous research has linked supply chain process integration with operational agility, lower costs, superior product/service design, and enhanced profitability. The findings of this research might prompt decision‐makers to ask themselves if their firms forgo such potential benefits when integrative forms of e‐procurement are not used.
This research contributes to the understanding of an emerging phenomenon by investigating firm size as an explanatory variable in the e‐procurement application decision. In addition, evidence is still lacking with regard to the prevalence of actual implementation of e‐procurement in firms. This study examines actual usage of 13 different e‐procurement applications across various industries. Finally, this research focuses on the use of e‐procurement in achieving integration. This is important to practitioners, as effective supply chain integration has been linked to enhanced business performance.
The purpose of this study was to empirically evaluate a modified version of Sheth's model (1981) of buying behavior, in order to determine retail buyers’ willingness to…
The purpose of this study was to empirically evaluate a modified version of Sheth's model (1981) of buying behavior, in order to determine retail buyers’ willingness to trade off on negotiation variables when placing items on automatic replenishment (AR). A total of 103 usable questionnaires were returned from corporate buyers from five major department store chains located throughout the USA, yielding a 41 percent response rate. Multiple regression analysis indicated that the modified portion of Sheth's model used in this study was satisfactory in exploring relationships that exist between buyers and vendors when determining what products can be placed on AR. The model was significant and respectable in explanatory power, and the significant or highly related variables were: merchandise driven mentality; price/value; color; design; and type of merchandise category. These were all significant or highly related to the buyer's willingness to trade off on the negotiation variables (price, packaging, delivery and assortment). Future research is needed to explore the development of a model that explains the process and decision criteria for successful AR programs.