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Article
Publication date: 15 June 2020

Lela Mélon and Rok Spruk

Because of the renewed interest in public purchasing and the strategic use of public funds under the requirements of sustainable development, the question arose once again…

Abstract

Purpose

Because of the renewed interest in public purchasing and the strategic use of public funds under the requirements of sustainable development, the question arose once again as to how to curb the fall of institutional quality once criteria other than price are inserted into the decision-making in public purchasing. E-procurement has been repeatedly named as one of the most efficient tools to that effect and the present paper sets out to discover whether the implementation of e-procurement in a particular country per se entails also higher institutional quality, allowing for a wider implementation of green and sustainable procurement at the national, regional and municipal level without the fear of worsening the country’s institutional quality. By analyzing the implementation of e-procurement in Denmark, the Netherlands and in Portugal, this paper aims to verify the hypothesis that the implementation of e-procurement implies better institutions in terms of public purchasing. As such, the conclusions will be used in further research on the prerequisites for a successful implementation of green public procurement across the European Union.

Design/methodology/approach

Gathering data on institutional quality of three early e-procurement adopters (Denmark, the Netherlands and Portugal) allows for comparison of institutional quality pre- and post-e-procurement implementation. By using difference-in-differences comparison the paper seeks to answer the question how doesmandatory e-procurement influence institutional quality on the national level.

Findings

The paper finds that the reform is generally associated with a relatively stronger control of corruption in the Netherlands and Denmark, while a similar reform in Portugal failed to translate into a stronger control of corruption. Furthermore, while using the quality of regulation as a dependent variable, a positive and robust effect on the quality of regulation in Denmark was shown, while the quality of reputation in the Netherlands and Portugal declined in the post-reform period, with the drop in the quality of regulation in Portugal being considerably greater, a two-fold higher amount than the estimated drop in the Netherlands. The paper suggests that in spite of the same aims, the reform yielded substantially different or even opposing effects compared to Denmark.

Research limitations/implications

By examining three examples of early adopters, further research with broader impact is needed to deduce general implications for e-procurement implementation. Furthermore, implementation of e-procurement at the regional or local level can also yield distinct results.

Social implications

Understanding the actual impact of e-procurement on institutional quality is indispensable for further study on the matter. The present study argues that e-procurement needs to be accompanied by additional measures or variables to yield a positive impact on institutional quality in public procurement.

Originality/value

As to originality, the present paper uses a law and economics approach, originating or better said drawing motivation from green public procurement concerns, trying to provide an insight in terms of tools that can be used to eliminate concerns regarding institutional quality when implementing green public procurement practices.

Details

Journal of Public Procurement, vol. 20 no. 4
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 12 March 2020

Nripendra Kumar and Kunal K. Ganguly

The purpose of this research paper is to identify the non-financial e-procurement performance measures and find out whether these non-financial performance measures are…

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820

Abstract

Purpose

The purpose of this research paper is to identify the non-financial e-procurement performance measures and find out whether these non-financial performance measures are leading indicator of impact on firm financial performance by adoption of e-procurement in terms of reduction in production cost.

Design/methodology/approach

The research model has been tested with the data collected from target procurement professionals in India. Structural equation modelling has been used for testing conceptual model hypotheses including mediation. The phantom model approach for testing multiple mediators has deployed.

Findings

The present empirical study found that non-financial performance measure of e-procurement, namely, transparency, coordination, efficiency and effectiveness are leading indicators of the impact of e-procurement adoption on production cost. This paper suggests that managers should try to design the e-procurement platform or opt for third party platform which reduces transaction cost to a minimum for enhanced coordination, work on transparency policy with maximum disclosure of information for enhanced transparency and ask for a fast and responsive system for enhanced efficiency and effectiveness.

Originality/value

This study, first time, attempted to identify non-financial performance measures of e-procurement and tried to understand how these intermediate non-financial performance measures impact the firm financial performance. The interdependence of non-financial performance measures has also been explored, and the research model has been developed to empirically examine the interdependence of these financial measures and its impact on production cost.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 1
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 23 July 2020

Nripendra Kumar and Kunal K. Ganguly

The purpose of this paper is to understand the process through which external diffusion of business-to-business (B2B) e-procurement impacts firm performance. The research…

Abstract

Purpose

The purpose of this paper is to understand the process through which external diffusion of business-to-business (B2B) e-procurement impacts firm performance. The research model has been developed to empirically examine the role of information transparency and supply chain coordination in improving the firm financial performance by external diffusion of e-procurement.

Design/methodology/approach

The survey is conducted in India with a target population of purchasing professionals working on the B2B e-procurement platform. The measurement model was first tested by using confirmatory factor analysis for reliability and validity, then structural equation modeling (SEM) was used to test the hypotheses of the research model using AMOS 22. The phantom model approach has been used for testing multiple mediators.

Findings

The result of the study highlights the importance of information transparency and supply chain coordination in enhancing the firm financial performance by external diffusion of e-procurement. The results establish the role of information transparency in enhancing firm performance by improving supply chain coordination. The results also indicate that supply chain coordination mediates the relationship between external diffusion of e-procurement and firm financial performance.

Originality/value

This is the first study that has focused on the external diffusion of e-procurement and its impact on firm performance. Also, this study attempted to understand the process through which external diffusion of e-procurement impacts the firm financial performance.

Details

Journal of Enterprise Information Management, vol. 34 no. 4
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 22 February 2011

Alistair Brandon‐Jones and Sinéad Carey

Whilst e‐procurement has significant potential to reduce the purchasing costs of an organisation, the realisation of these savings requires user compliance. The purpose of…

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4769

Abstract

Purpose

Whilst e‐procurement has significant potential to reduce the purchasing costs of an organisation, the realisation of these savings requires user compliance. The purpose of this paper is to examine the extent to which user‐perceived e‐procurement quality (EPQ) (operationalised through the dimensions of professionalism, processing, training, specification, content, and usability) influences both system and contract compliance.

Design/methodology/approach

User perceptions of EPQ were examined in four UK organisations using survey data from 274 respondents.

Findings

Strong evidence was found of a positive relationship between user‐perceived EPQ and both system and contract compliance. System compliance was most strongly influenced by professionalism and content dimensions, whilst contract compliance was most strongly influenced by processing, specification, and content dimensions.

Research limitations/implications

Data were collected from e‐procurement users in four organisations, which may limit the extent to which findings can be generalised.

Practical implications

User perceptions of e‐procurement provision significantly influence system and contract adoption. Practitioners should pay attention to management of different dimensions of perceived quality as they may have different effects on both contract and system compliance.

Originality/value

This paper is the first to empirically assess the relationship between user‐perceived EPQ and compliance. Its findings challenge the assumption that the monopolistic dynamics common within internal services, such as e‐procurement provision, are sufficient to ensure compliance. Dissatisfied individuals invariably find ways to circumvent mandatory systems and contracts.

Details

International Journal of Operations & Production Management, vol. 31 no. 3
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 27 July 2010

Wojciech Piotrowicz and Zahir Irani

This paper aims to present electronic procurement benefits identified in four case companies from the information technology (IT), hi‐tech sector.

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4162

Abstract

Purpose

This paper aims to present electronic procurement benefits identified in four case companies from the information technology (IT), hi‐tech sector.

Design/methodology/approach

Multi‐case study design was applied. The benefits reported in the companies were analysed and classified according to taxonomies from the information systems discipline. Finally, a new benefits classification was proposed. The framework was developed based on information systems literature.

Findings

The research confirmed difficulties with benefits evaluation, as, apart from operational benefits, non‐financial, intangible benefits at strategic level were also identified. Traditional evaluation methods are unable to capture all benefits categories, especially at strategic level. New taxonomy was created, which allows evaluation of the complex e‐procurement impact. In the proposed taxonomy, e‐procurement benefits are classified according to their level (operational, tactical, strategic), area of impact, applying scorecard dimensions (customer, process, financial, learning and growth). In addition the benefits characteristic is captured (tangible, intangible, financial and non‐financial).

Research limitations/implications

Research is based on four case studies only. Findings are specific to case companies and the environment in which they operate. The framework should be tested further in different contexts.

Practical implications

The new taxonomy allows evaluation of the complex e‐procurement impact, demonstrating that benefits achieved do not concern merely the financial impact. The framework can be applied to preparing new systems implementation as well as to evaluating existing systems.

Originality/value

The paper applies information systems frameworks to the electronic procurement field, which allows one to look at e‐procurement systems considering its complex impact. The framework can also be used to evaluate different systems, not simply e‐procurement.

Details

Journal of Enterprise Information Management, vol. 23 no. 4
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 20 June 2016

M. Ramkumar

The increasing complexity and dynamism of new technology implemented or to implement have imposed substantial uncertainties and subjectivities in the risk assessment…

Abstract

Purpose

The increasing complexity and dynamism of new technology implemented or to implement have imposed substantial uncertainties and subjectivities in the risk assessment process. This paper aims to present a risk assessment methodology for e-procurement implementation based on modified analytic network process (ANP) coupled with fuzzy inference systems.

Design/methodology/approach

ANP is modified in such a way that the experts can provide necessary data precise numerical value, a range of numerical values, a linguistic term or a fuzzy number. The proposed methodology incorporates knowledge and judgements obtained from experts to carry out identification of risk factors and to assess the risk magnitude of the identified risk factors based on factor index, risk likelihood and risk severity.

Findings

Risk magnitude of third party systems are found to be minor with a belief of 100 per cent, and for in-house systems, the risk is found to be between minor with a belief of 30 per cent and major of 70 per cent. The results indicate that by using the proposed methodology, the technological risk assessment of new technology can be done effectively and efficiently.

Research limitations/implications

Using the results of this study, the practitioners can better know the pros and cons of implementing both in-house and third party e-procurement systems.

Originality/value

The modified ANP is used mainly to structure and prioritize the diverse risk factors. Finally, an illustrative example on technological risk assessment of both in-house and third party e-procurement systems is used to demonstrate the applicability of the proposed methodology in real life situations.

Details

Strategic Outsourcing: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8297

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Article
Publication date: 4 October 2019

Tashfeen Ahmad, Ruba Aljafari and Viswanath Venkatesh

Realizing value from information and communication technology (ICT) in procurement in developing countries is complex due to diverse stakeholders and intertwined…

Abstract

Purpose

Realizing value from information and communication technology (ICT) in procurement in developing countries is complex due to diverse stakeholders and intertwined procurement processes. The purpose of this paper is to examine the experience of the Government of Jamaica in leveraging ICTs as an intervention to transform its procurement operations and combat corruption.

Design/methodology/approach

The study examines conversations with employees in the Government of Jamaica to understand key milestones in its procurement history. Based on the view that the intervention context is an ecosystem where multiple and inconsistent views of the e-procurement system evolve over time, the study analyzes milestones to reveal key actions that contributed either to the initial success of or introduced challenges to the e-procurement system.

Findings

The findings suggest that inducing positive sentiments about the intervention through transparency will overcome a long history of negative sentiments about the initiatives of government bodies in general. Furthermore, positive sentiments may not be directly related to the e-procurement system.

Research limitations/implications

The study offers important insights that government bodies in similar contexts can apply to guide initiatives for transforming procurement operations. For instance, training should emphasize not only the technical aspects of the system from the perspective of different stakeholders but also their job descriptions. Future research may examine other initiatives in developing countries to compare the role of sentiments over time.

Originality/value

The study adopts a unique approach to understand the experience of a developing country in harnessing ICTs to transform procurement operations.

Details

Internet Research, vol. 29 no. 6
Type: Research Article
ISSN: 1066-2243

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Article
Publication date: 14 October 2014

Arjun Neupane, Jeffrey Soar, Kishor Vaidya and Jianming Yong

The purpose of this paper is to report on research that evaluates the perceived willingness of potential bidders to adopt public e-procurement for the supply of goods and…

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1778

Abstract

Purpose

The purpose of this paper is to report on research that evaluates the perceived willingness of potential bidders to adopt public e-procurement for the supply of goods and services to the government of Nepal. The authors have identified anti-corruption attributes through an extensive literature review and developed a theoretical model representing the impact of four latent variables, monopoly of power, information asymmetry, trust and transparency and accountability on the dependent variable, the intent-to-adopt e-procurement (ITA).

Design/methodology/approach

Data for this research were obtained by the use of a questionnaire survey of bidders who were officially registered with the Government of Nepal. As part of the fieldwork for this research, the first author collected the perceptions of 220 bidders regarding the potential of public e-procurement to reduce corruption in public procurement processes.

Findings

The findings suggest that a high level of the ITA has a positive and significant relationship with the independent variables that might inform the developed and emerging countries to make a decision to adoption of e-procurement to combat corruption in public procurement.

Research limitations/implications

This study has some limitations that should be taken into consideration. The evaluation of anti-corruption factors, as they affect the willingness of users to adopt e-procurement on the bidder’s perception research model is relatively new to e-procurement research. A limitation of the research was that it gathered and analyzed data from a single country with a limited number of respondents. More research is needed to identify the anti-corruption factors of e-procurement in reducing corruption, and also need strong empirical test to valid the factors that influence the adoption of e-procurement.

Originality/value

This study aimed to contribute to the academic scholar, government agencies and public procurement practitioner in enhancing their understanding of the perceived anti-corruption factors of public e-procurement to reduce corruption.

Details

Transforming Government: People, Process and Policy, vol. 8 no. 4
Type: Research Article
ISSN: 1750-6166

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Article
Publication date: 1 March 2013

Francesco Gardenal

This paper presents a model for Public Contracting Authorities to quantify procurement performance benefits that can be achieved by adopting e-procurement. It has been…

Abstract

This paper presents a model for Public Contracting Authorities to quantify procurement performance benefits that can be achieved by adopting e-procurement. It has been found that e-procurement could generate positive impacts, especially on the efficiency, effectiveness, dematerialization, competitiveness and transparency impact dimensions. Adopting e-procurement in the public sector is far more than just a technological challenge; it embodies a large scale change management effort to create a more efficient procurement culture. Using the performance measurement approach herewith presented helps to tackle this challenge, stimulating the effective use of e-procurement solutions. Measuring how eprocurement is contributing to optimize public expenditure by increasing organizational performances; can help to overcome the resistance to change. Plus, this model can be used to strengthen stakeholder accountability of both Contracting Authorities and public e-procurement service providers. The model has been consistently tested over the last four years with satisfactory results confirming the hypothesis; the case study is herewith exposed. The model can be applied in different context, therefore method and practical recommendations are also provided.

Details

Journal of Public Procurement, vol. 13 no. 2
Type: Research Article
ISSN: 1535-0118

Content available
Article
Publication date: 13 April 2015

Achmad Nurmandi and Sunhyuk Kim

– The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia’s local government system.

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12291

Abstract

Purpose

The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia’s local government system.

Design/methodology/approach

The authors combine quantitative and qualitative methods. The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. This research focusses on three local governments in Indonesia – Yogyakarta City, Tangerang City, and Kutaikartanegara Regency.

Findings

The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. However, Tangerang City is going institutionalization phase in e-procurement initiative to ensure its sound local regulation.

Research limitations/implications

There are several limitations to this study including the recent nature of decentralized procurement in Indonesia, limited standardized and disaggregated data on local government procurement expenditures and performance.

Practical implications

The study recommends that human resources management in procurement needs to be addressed by both local and central government.

Originality/value

e-Procurement is an important instrument for preventing corruption in goods and services procurement. Indonesia has been implementing an e-procurement policy since 2008 based on a Presidential Decree. The president has issued annual orders (presidential instructions), and all central ministries and local governments have been required to comply with them to obtain their budget through the e-procurement system. However, as of 2012 fiscal year, only around 10.26 percent of the central government institution procurement budget and 10 percent of the local government procurement budget in Indonesia went through the e-procurement system, with wide variations among cities.

Details

International Journal of Public Sector Management, vol. 28 no. 3
Type: Research Article
ISSN: 0951-3558

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