Type of procurement and operational performance: Comparing e-procurement and offline purchasing

Advanced technology has paved the path for improving overall performance in supply chain management, and has turned the latter into a competitive advantage for many companies. This study explores electronic procurement and its relationship with operational performance. Data was collected by means of questionnaires distributed to active vendors and end users in Company X. The results reveal that operational performance differs with the type of procurement: e-procurement vendors have better operational performance compared to those practicing traditional purchasing. However, the relationship between type of procurement and operational performance is moderated by business volume, vendor region, extent of trust and cooperation, whereas product type did not hold a significant moderator effect. Accordingly, managers should adopt e-procurement in their respective organisations to improve operational performance in supply chain management.

[1]  Kenneth K. Boyer,et al.  Factors influencing the utilization of Internet purchasing in small organizations , 2003 .

[2]  Moreno Muffatto,et al.  Implementation of e-procurement and e-fulfillment processes: A comparison of cases in the motorcycle industry , 2004 .

[3]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[4]  D. Wyld,et al.  E‐procurement: is the ugly duckling actually a swan down under? , 2004 .

[5]  Antonio Davila,et al.  Research Paper Series Graduate School of Business Stanford University Moving Procurement Systems to the Internet: the Adoption and Use of E-procurement Technology Models , 2022 .

[6]  S. Croom.  The impact of e‐business on supply chain management , 2005 .

[7]  R. Alt,et al.  Successful use of e‐procurement in supply chains , 2005 .

[8]  Ravi Kalakota,et al.  e-Business: Roadmap for Success , 1999 .

[9]  Matthew H. Roy.  Small group communication and performance: do cognitive flexibility and context matter? , 2001 .

[10]  S. Ronchi,et al.  Internet supporting the procurement process: lessons from four case studies , 2003 .

[11]  Matthew H. Roy,et al.  Developing Trust: The Importance of Cognitive Flexibility and Co-Operative Contexts , 1998 .

[12]  John Corini,et al.  INTEGRATING E-PROCUREMENT AND STRATEGIC SOURCING , 2000 .

[13]  F. Dwyer,et al.  Developing Buyer-Seller Relationships: , 1987 .

[14]  Ho Geun Lee,et al.  Is the internet making retail transactions more efficient? Comparison of online and offline CD retail markets , 2003, Electron. Commer. Res. Appl..

[15]  S. Croom.  The Impact of Web-Based Procurement on the Management of Operating Resources Supply , 2000 .