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Impact of E-Procurement Adoption on Company Performance: Evidence from Indonesian Manufacturing Industry

Author

Listed:
  • Ilyas Masudin

    (Department of Industrial Engineering, University of Muhammadiyah Malang, Malang 65144, Indonesia)

  • Ganis Dwi Aprilia

    (Department of Industrial Engineering, University of Muhammadiyah Malang, Malang 65144, Indonesia)

  • Adhi Nugraha

    (Department of Industrial Engineering, University of Muhammadiyah Malang, Malang 65144, Indonesia)

  • Dian Palupi Restuputri

    (Department of Industrial Engineering, University of Muhammadiyah Malang, Malang 65144, Indonesia)

Abstract

This study was conducted to determine the performance impact of e-procurement adoption in Indonesian manufacturing companies. This study consists of four variables: top management support, information quality, implementation of e-procurement, and company performance. Pilot testing questionnaires were used to test whether the respondents understood the questions given by the researcher. After conducting the pilot test, the final questionnaire was distributed to respondents. The pilot test results and the final questionnaire were analyzed using Statistical Package for Social Science (SPSS) version 21 and SmartPLS v3.0 software to determine the relationship between variables. The results of this study support the acceptance of three hypotheses. The results indicate that top management support has a significant effect on e-procurement implementation. Other results show that information quality has a significant effect on e-procurement implementation, while e-procurement implementation has a significant effect on company performance. From the findings of this article, recommendations from a management perspective are discussed to increase management awareness in adopting electronic procurement.

Suggested Citation

  • Ilyas Masudin & Ganis Dwi Aprilia & Adhi Nugraha & Dian Palupi Restuputri, 2021. "Impact of E-Procurement Adoption on Company Performance: Evidence from Indonesian Manufacturing Industry," Logistics, MDPI, vol. 5(1), pages 1-16, March.
    • Handle: RePEc:gam:jlogis:v:5:y:2021:i:1:p:16-:d:517030
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    References listed on IDEAS

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    Cited by:

    1. Ermos Michael Jama & Bupe Gertrude Mwanza & Erastus Mishengu Mwanaumo, 2024. "Strategies for E-Procurement Adoption by Small and Medium-sized Enterprises: Insights from South Sudan," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 4(3).
    2. Essau Banda & Dr. Ethel Tembo Mwanaumo, 2026. "Assessing the Effectiveness of Electronic Government Procurement (E-GP) On Organizational Performance in Water Utilities in Zambia: A Case of Lusaka Water Supply and Sanitation Company Limited," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(1).
    3. Prisca P Rutatola & Getrude J Danieli & Ismail A Changalima, 2024. "The interplay of social influence and top management support on suppliers' behavioural intentions in e-procurement usage," Post-Print hal-04683277, HAL.
    4. Deus Shatta & Benjamin Mwakyeja & Nicholaus W. Mgawe, 2024. "The effects of behavioral intention to use e-procurement system on public procurement performance in emerging countries buyer-supplier perspectives from Tanzania," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(5), pages 335-351, July.
    5. Deus Shatta & Bahati Mabina, 2024. "Theorized model for e-procurement system in developing countries: evidence from Tanzania," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(2), pages 420-434, March.
    6. Deus Shatta & Bahati K. Mabina, 2024. "The determinants of use behavior of e-procurement system in developing countries a mediating effect of buyers’ and suppliers’ attitude from Tanzania," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 6(2), pages 151-165, April.
    7. Ermos Michael Jama & Bupe Getrude Mwanza & Prof. Erastus Mishengu Mwanaumo, 2024. "E-procurement Adoption Barriers encountered by Small and Medium-sized Enterprises (SMEs) in the Republic of South Sudan," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 4(1).

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