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Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms

Author

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  • Abhay Nath Mishra

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Prabhudev Konana

    (McCombs School of Business, University of Texas, Austin, Texas 78712)

  • Anitesh Barua

    (McCombs School of Business, University of Texas, Austin, Texas 78712)

Abstract

This paper examines the antecedents and consequences of Internet use in the procurement process. Drawing upon the resource-based view (RBV) of the firm and the technology, organization, and environment framework, we develop an integrative model that examines the antecedents and consequences of Internet use in two stages---the search stage and the order initiation and completion (OIC) stage---of the procurement process. The model enables us to deconstruct both the usage and the performance aspects of information technology (IT) in business processes, and to provide insights into the enablers of use and business value. The model is estimated with survey data from 412 firms. Our results suggest that while some resources, such as procurement-process digitization, influence Internet use in both the procurement stages, other resources, such as the diversity of organizational procurement knowledge, impact Internet use in only one stage. We also find that Internet use in the OIC stage has a more significant impact on procurement-process performance than use in search. This study extends the digital capabilities and firm performance literature in the context of electronic procurement. This study also contributes to the small but emerging stream of literature that investigates antecedents, the extent, and implications of IT use holistically.

Suggested Citation

  • Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    • Handle: RePEc:inm:orisre:v:18:y:2007:i:1:p:103-120
    DOI: 10.1287/isre.1070.0115
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