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Adoption of e-procurement in Hong Kong: An empirical research

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  • Gunasekaran, Angappa
  • Ngai, Eric W.T.

Abstract

For the past 5 years, a large number of procurement articles have appeared in the literature. E-procurement solutions make purchasing activities more effective in terms of both time and cost. E-procurement is changing the way businesses purchase goods. Since most products and services are procured using electronic data interchange and the Internet, the application of e-procurement is inevitable in both manufacturing and services. There are limited empirical studies in the literature on the adoption of e-procurement in a country, that is, at the macro-level. Nevertheless, such a study will help companies in other countries to develop policies, strategies, and procedures to implement e-procurement. Understanding the importance of such a study, we have conducted a questionnaire-based survey about the adoption of e-procurement in Hong Kong. The main objective of this study is to identify the perceived critical success factors and perceived barriers regarding the implementation of e-procurement. A conceptual framework has been developed for the adoption of e-procurement, and this subsequently has been tested with data collected from companies in Hong Kong. Also, this study examines the current status of e-procurement adoption in Hong Kong. Finally, a framework is proposed based on the conceptual and empirical analysis for the adoption of e-procurement. The results indicate that educating companies in both long- and short-term benefits would encourage the application of e-procurement. Some critical success factors include adequate financial support, availability of interoperability and standards with traditional communication systems, top management support and commitment, understanding the priorities of the company, and having suitable security systems.

Suggested Citation

  • Gunasekaran, Angappa & Ngai, Eric W.T., 2008. "Adoption of e-procurement in Hong Kong: An empirical research," International Journal of Production Economics, Elsevier, vol. 113(1), pages 159-175, May.
  • Handle: RePEc:eee:proeco:v:113:y:2008:i:1:p:159-175
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    References listed on IDEAS

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    1. Davila, Antonio & Gupta, Mahendra & Palmer, Richard, 2003. "Moving Procurement Systems to the Internet:: the Adoption and Use of E-Procurement Technology Models," European Management Journal, Elsevier, vol. 21(1), pages 11-23, February.
    2. Panayiotou, Nikolaos A. & Gayialis, Sotiris P. & Tatsiopoulos, I.P.Ilias P., 2004. "An e-procurement system for governmental purchasing," International Journal of Production Economics, Elsevier, vol. 90(1), pages 79-102, July.
    3. Muffatto, Moreno & Payaro, Andrea, 2004. "Implementation of e-procurement and e-fulfillment processes: A comparison of cases in the motorcycle industry," International Journal of Production Economics, Elsevier, vol. 89(3), pages 339-351, June.
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    Citations

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    Cited by:

    1. M Ramkumar & Mamata Jenamani, 2012. "E-procurement Service Provider Selection--An Analytic Network Process-Based Group Decision-Making Approach," Service Science, INFORMS, vol. 4(3), pages 269-294, September.
    2. ToktaƟ-Palut, Peral & Baylav, Ecem & Teoman, Seyhan & Altunbey, Mustafa, 2014. "The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 158(C), pages 77-90.
    3. Chong, Alain Yee-Loong & Ooi, Keng-Boon & Sohal, Amrik, 2009. "The relationship between supply chain factors and adoption of e-Collaboration tools: An empirical examination," International Journal of Production Economics, Elsevier, vol. 122(1), pages 150-160, November.
    4. Bayraktar, Erkan & Demirbag, Mehmet & Koh, S.C. Lenny & Tatoglu, Ekrem & Zaim, Halil, 2009. "A causal analysis of the impact of information systems and supply chain management practices on operational performance: Evidence from manufacturing SMEs in Turkey," International Journal of Production Economics, Elsevier, vol. 122(1), pages 133-149, November.
    5. Chen, Kebing, 2012. "Procurement strategies and coordination mechanism of the supply chain with one manufacturer and multiple suppliers," International Journal of Production Economics, Elsevier, vol. 138(1), pages 125-135.
    6. Chen, Songlin & Tseng, Mitchell M., 2010. "A Negotiation-Credit-Auction mechanism for procuring customized products," International Journal of Production Economics, Elsevier, vol. 127(1), pages 203-210, September.
    7. Gunasekaran, Angappa & McGaughey, Ronald E. & Ngai, Eric W.T. & Rai, Bharatendra K., 2009. "E-Procurement adoption in the Southcoast SMEs," International Journal of Production Economics, Elsevier, vol. 122(1), pages 161-175, November.
    8. Nguyen, Hong-Oanh, 2013. "Critical factors in e-business adoption: Evidence from Australian transport and logistics companies," International Journal of Production Economics, Elsevier, vol. 146(1), pages 300-312.
    9. Hsu, Wen-Kai K. & Huang, Show-Hui S. & Yu, Hong-Fwu, 2009. "Shipper behavior to use EC services in liner shipping," International Journal of Production Economics, Elsevier, vol. 122(1), pages 56-66, November.
    10. Rothkopf, Alexander & Pibernik, Richard, 2016. "Maverick buying: Eliminate, participate, leverage?," International Journal of Production Economics, Elsevier, vol. 179(C), pages 77-89.

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