Chapter 1: Introduction

Procurement is considered a critical support activity in an organisation and thus its performance is impactful to the overall organisational success (Quesada et al., 2010). Procurement describes the process that organisations take to obtain the best quality goods or services at the most competent prices from external parties (Hsin Chang et al., 2013). The major activities involved in procurement include tendering, selection, negotiation, contracting, purchasing, invoicing, and payment. E-procurement entails a level of modification of the traditional supply chains and entails activities such as e-tendering, e-informing, e-invoicing, e-payment, e-auctioning, among others (Kim et al., 2015). E-procurement traces its origins in the 1980s with the development of information technology such as electronic data interchange (EDI) (Hsin Chang et al., 2013). The technology at the time allowed customers and suppliers to exchange transactional information such as purchase orders and invoices through call-forward networks, and later emails. With the increasing development of information technology infrastructure, e-procurement has progressively gained traction and more e-business functionalities have become adopted making the systems more complex and versatile (Tai et al., 2010). E-commerce has been important in supporting the procurement function within organisations and take various forms including business to business (B2B), business to consumers (B2C) and business to government (B2G) (Hsin Chang et al., 2013). E-procurement is associated with enhancing performance and increasing transparency of the procurement process. The study delves in investigating how e-business strategies help in boosting the performance of the procurement function within organisations.

Background of the study

The goal of the procurement function within organisations is usually to obtain the best value at the least cost possible. Also, procurement is meant to instil discipline in spending, promote fairness in supplier selection and ensure there is value for money throughout the process (Economics, 2015). However, manual procurement systems have to a large extent failed to meet this goal as they are prone to human manipulation (Ferreira and Amaral, 2016). Manual procurement systems are thus associated with weak internal controls due to lack of transparency (Tyagi et al., 2014). As such procurement laws were developed by various governments and international bodies to ensure that the incidences of human manipulation were minimised (Elliot et al., 2016). There are several procurement laws that are aimed at entrenching accountability, transparency, and fairness of the process. In Australia, procurement is governed by legislation at the federal level as well as the state level (Elliot et al., 2016). The procurement laws provide guidelines on issues such as award procedures, exclusions, and exemptions in procurement procedures. The Public Governance, Performance and Accountability Act (2013) (PGPA Act) is the relevant federal legislation that lays out the rules for public procurement (Neupane et al., 2014). The legislative framework for procurement is also guided by the Commonwealth Procurement Rules (CPRs) (Neupane et al., 2014).

The existing procurement laws have helped to streamline procurement processes, but have not been sufficient in eliminating cases of manipulation and adverse decisions (Tyagi et al., 2014). The laws may not make up for factors such as human errors and deliberate bending of rules when the systems lack transparency and there is no clear accountability system. Thus, e-procurement is identified as one possible solution to the problems that face manual procurement systems. Through replacing manual procurement systems, e-procurement could cater to the inadequacies of procurement laws in preventing manipulation, ensuring value for money and reducing human error.

E-procurement helps in decision support, as decisions are made through the various selection criteria that are allowed by procurement laws. The common criteria are described by the Chartered Institute of Procurement and Supply (CIPS) and organisations such as the World Bank. One criterion is the quality and cost-based selection (QCBS) which involves the matching of the quality of the proposal with the cost to identify the applicant who offers the best value for money (Mogre et al., 2017). The second criterion is the quality based selection (QBS) whereby the quality is the primary concern rather than the cost. Another approach of selection is referred to as selection under a fixed budget (SFB) which applies to simple and small contracts. The least-cost selection (LCS) also applies to simple contracts for common items and services whereby the applicant offering the least price is selected (Mogre et al., 2017). Selection based on qualification is another approach that focuses on the suitability of the applicants and is especially utilised in consultative positions where competence is the key aspect of the contract. Finally, the single-source selection (SSS) does not entail competitive bidding and a supplier is appointed directly without a competitive process taking place (Tai et al., 2010). Understanding the different criteria used in the selection of applicants is important in analysing the design of the various e-procurement mechanisms that are used in organisations.

Statement of the problem

Procurement systems are faced with risks and challenges that e-procurement platforms seek to avert. The challenges that are inherent to procurement makes it difficult for manual systems to detect flaws in good time, which results in wastage of time and resources (Belisari et al., 2019). As a result, there have been deliberate efforts by procurement stakeholders to develop ways to enhance procurement performance and tackle the inherent risks facing procurement (Belisari et al., 2019). The risks associated with procurement include non-performance, bad selection, slow process, non-compliance, human errors and mistakes, among others. Procurement laws have contributed to instilling discipline in the procurement process, but some procurement challenges have persisted. Thus, more measures focusing on strengthening the internal control systems of an organisation are required to achieve the desired impact (Mital et al., 2014). E-procurement has been identified as being instrumental in enhancing internal controls of an organisation and thus eliminating some of the flaws with manual procurement (Mital et al., 2014).

The identification of the various risks that are present within the manual procurement systems imply that there is a need for organisations to look for innovative ways to overcome the challenges. The risks and challenges facing manual procurement systems result in declined procurement performance. Most of the risks are related to weak or ineffective internal controls that emanate from the failure of accountability systems (Walker and Brammer, 2012). E-procurement has been proposed as a way to enhance internal controls in an organisation’s supply chain. The elimination of the challenges inherent to procurement is a major step in boosting procurement performance (Belisari et al., 2019). However, the adaptation of e-procurement does not automatically result in enhanced procurement performance (Chomchaiya and Esichaikul, 2016). The design attributes are thus a major contributing factor to the success of e-procurement systems. Thus, organisations are faced with a common dilemma of deciding whether or not to implement e-procurement, and what features of the system to pay attentions to during the implementation. Furthermore, it is critical to make distinctions between the various attributes of the e-procurement systems to establish what works, and what does not work. The information is useful especially for the procurement profession at a time when organisations are looking towards gaining a competitive edge over rivals.

Research questions

1. What are the various applications of e-procurement systems within organisations?
2. Does the implementation of e-procurement mechanisms result in better procurement performance?
3. How effective are the various specific e-business activities in enhancing procurement performance?
4. What is the set of features that make e-procurement platforms effective in improving procurement performance?

Aim of the dissertation

The aim of the dissertation is to establish whether or not e-procurement can be used to enhance procurement performance.

Objectives of the dissertation

The objectives of the dissertation are to:

1. Identify and critically appraise the various applications and limitations of e-procurement in organisations.
2. Critically determine the effectiveness of specific e-business activities in enhancing the procurement function.
3. Critically evaluate the ways in which e-procurement can improve procurement functions.
4. Synthesise the capabilities necessary for the implementation of an effective e-procurement mechanism.

Significance of the study

E-procurement, similar to other forms of e-commerce has been a disruptive technology that has revolutionised the procurement profession. Procurement departments within organisations have for long been associated with inefficiencies and lack of accountability that has dented their image (Campos and Rebs, 2018). Thus, e-procurement has been proposed as one way for organisations to shed the negative image that various stakeholders have on procurement performance. The benefits of adopting various e-business technologies are extensively discussed in past literature (Chaffey et al., 2015). However, disparities in procurement performance have been identified amongst various organisations that have implemented e-procurement; which is as a result of a low understanding of e-procurement systems amongst stakeholders (Chaffey et al., 2015). Therefore, highlighting the attributes of the e-procurement systems that would result in better performance is essential for the stakeholders looking forward to implementing e-procurement in their respective organisations.

Organisations differ in size and nature which implies that there is no standardised e-procurement approach that can be implemented by all organisations. Also, organisations have different enterprise resource planning (ERP) and manufacturing resource planning (MRP) systems which means that they cannot integrate with the e-procurement system in a similar way (Campos and Rebs, 2018). As a result, all e-procurement systems must be tailored to meet the specific needs of the company. However, it is essential to point out the distinguishing attributes that make the system effective. The internal factors such as change resistance and failure in proper integration may be a hindrance to successfully implementing e-procurement (Graham et al., 2013). Such factors thus require to be understood by the organisations intending to implement e-procurement (Campos and Rebs, 2018). The aim of the study is thus to highlight the attributes that make e-procurement more effective and highlight additional factors that may deter its successful implementation. The knowledge is useful for procurement professionals as well as system developers.

Research Philosophy

The research is based on an interprevist approach as it entails naturalistic means of data collection, which is interviews. The approach does not entail the beginning of a research process with a hypothesis. As a result, data is first gathered to form the basis of the research findings and recommendations. Thus, the research does not entail the testing of a predetermined model, but rather it comprises of data collection so as to formulate its own model. The interpretative approach entails the quest to understand a phenomenon from the subjective views of the research subjects which is suitable for a study of a qualitative nature.

Description of the dissertation chapters

The second chapter which is the literature review comprises of a critical assessment of the views and findings of various authors as documented in past literature.

The third chapter is the methodology which describes the methods used to collect data and analyse it to arrive at the research findings.

The fourth chapter is the results and findings which describes the insights that have been gathered from the data collection process.

The discussion and analysis is the fifth chapter which is a deeper assessment of the findings of the study.

The final chapter is the conclusions and recommendations which highlights the key findings and proposes ways in which the study can be applied to improve procurement performance within organisations.

 

 

Chapter 2: Literature review

The literature review section is an evaluation of past studies on e-procurement implementation concerning its impact on procurement performance. E-procurement has been extensively studied in past literature, especially on its impacts on organisations. The literature review covers various elements of the research including the definitions by various authors, the major themes that have been explored and theoretical foundations of E-procurement. Several pieces of literature also focus on challenges that face manual procurement systems, which can be solved or mitigated through the use of e-procurement.

Theoretical framework

The problems associated with manual procurement systems are highlighted in the introduction, and e-procurement has been proposed as a tool to overcome the challenges. The question under investigation is as to whether e-procurement is effective in enhancing the performance of the procurement function. Quesada et al., (2010) study entailed an investigation of the impacts of electronic procurement practices on procurement performance and procurement practices. The study was quantitative in nature and comprised a sample of 368 procurement specialists from the USA as the respondents. The findings of the study associated e-procurement with enhanced procurement performance and positive management perception of procurement practices. A related study by Tai et al. (2010) explored the role of e-procurement in increasing inter-organisational efficiency. The study used a questionnaire design on 137 Taiwan firms to investigate the relationship between web-based procurement and the operational and strategic supply chain performance. Operational efficiency includes factors such as process automation, buyer performance, supplier performance, and process integration. On the other hand, the strategic dimension entails partner relationship amongst organisations. The study revealed the existence of a positive relationship between e-procurement and the variables of operational efficiency and strategic performance (Tai et al., 2010).

A later study by Hsin Chang et al. (2013) used a mixture of qualitative and quantitative research to investigate the relationship between e-procurement and supply chain performance. Interviews were used to investigate the practical applications and impacts of e-procurement on organisations. Empirical data was also collected from various enterprises to provide the evidence needed to support research findings. The researchers identified that e-procurement enhances supply chain performance through enhancing information sharing, enhancing partner relationships and integration of the supply chain system. Thus, the findings by Hsin Chang et al., (2013) are consistent with the previous findings of Quesada et al., (2010) and Tai et al., (2010) that e-procurement results to enhanced supply chain performance. The three studies form a suitable benchmark for current research. The studies also reveal the existence of much scholarly interest in the research topic. Much of the literary works on the topic have majorly concentrated on the effects of e-procurement on supply chain or procurement performance. However, limited attention has gone to specific features of e-procurement and their effects on the success of e-procurement implementation. Thus, the current study also focuses on this additional dimension.

Procurement performance

The aim of the study is to establish whether or not e-procurement adaptation has an impact on procurement performance. Thus, it is crucial to understand what is meant by procurement performance as has been stated in various pieces of literature. Kakwezi and Nyeko (2019) defined procurement performance as the extent in which the procurement system of an organization is able to attain its goals and objectives. Several other authors have also provided descriptions of what procurement performance entails. Belisari et al. (2019) added that procurement performance majorly entails aspects such as the cost performance, quality of work, timing, and compliance with legal requirements. The goals and objectives of the procurement function for several public and private institutions are premised around improving cost performance, enhancing the quality of work, products or services, and ensuring compliance requirements are adhered with. Kakwezi and Nyeko (2019) further noted that organisations have majorly focused on cost as the major indicator of procurement performance. Thus, lower costs have been attributed to better procurement performance, and vice versa. However, Belisari et al. (2019) noted that an effective measure of procurement performance should cover both financial and non-financial dimensions of the procurement function. As a result, the key performance indicators (KPIs) of procurement performance have been established which include procurement cycle time, vendor performance, and cost savings (Belisari et al., 2019).

An ideal procurement system scores higher in terms of the procurement performance KPIs. The focus on cost has been due to concerns that organisations do not achieve the best value for money due to the abuse of the procurement process (Kakwezi and Nyeko, 2019). Vendor performance is also directly related to the process of supplier selection. The quality of the procurement system determines the extent in which the selection process attains the objective of optimising vendor performance (Belisari et al., 2019). Lastly, the procurement cycle is dependent on how efficiently and fast the procurement process is undertaken within an organisation. Due to time constraints in some procurement cycles, it is critical to focus on the period taken to complete the process as an indicator of performance (Belisari et al., 2019). Thus, the KPIs gives a clear indication of how a proper performing procurement system should look like. The understanding of procurement performance gives more clarity of what information is required in data collection.

Definition of e-procurement

Quesada et al. (2010) described e-procurement as the use of electronic platforms such as the internet, emails or world wide web to purchase products from external suppliers. Thus, e-procurement entails feature such as electronic bidding via portals, electronic ordering, web-based market places, EDI, among others. Li et al. (2015) expanded the description to claim that e-procurement connects two organisations, the buyer and seller in several different levels which simplifies corporate purchasing. Both descriptions from the two authors to a large extent provide illustrations of how e-procurement provides benefits such as hastening and simplifying the procurement process. For instance, Quesada et al. (2010) noted that e-procurement enables staff to purchase goods in real-time simply by making commands on their computers. The definitions of e-procurement from the above pieces of literature are also consistent with that of CIPS as being a platform that uses ICT technology to provide a link between buyers and sellers of goods and services (Campos and Rebs, 2018).

Challenges facing manual procurement systems

In supporting the case for e-procurement, several authors have focused on the shortcomings of manual procurement which may be alleviated through the use of e-procurement. As such, this section of the review of literature focuses on how manual procurement systems relate to the various KPIs of procurement performance such as cost, time, compliance, vendor performance. The section also identifies the gaps that have been identified by authors with manual procurement that may be filled by e-procurement.

The selection of suppliers through the procurement process is one of the most fundamental decisions for an organisation as it impacts the overall performance of a firm. Li et al. (2015) identified that procurement systems were developed to ensure the best possible decisions are made during the selection process. However, a study by Darr (2019) revealed that the manual procurement process does not always result in optimal decisions due to the natural limitations of human capacity. The claims by Darr (2019) are reflected in a 2015 report by Deloitte Access Economics, commissioned by Consult Australia found that the Australian government loses approximately $2.5 billion annually due to poor procurement practices (Economics, 2015). The report recommends that there are much value and cost savings that could be attained through the streamlining of procurement practices. Technology has been credited with simplifying business processes in a major way and solving several business problems as well (Economics, 2015). Darr (2019) concurred with the Deloitte report that technology has had a similar positive impact on the procurement function within organisations (Darr, 2019).

Quesada et al. (2010) established that procurement risk ranks high among the challenges that affect the supply chains of organisations. The procurement risks may result in an organisation experiencing variations in cost, quality, delivery times and terms, among others. Nurmandi and Kim, (2015) added on the findings by explaining that manual procurement systems lack the capacity to thoroughly vet the applicants in instances where there are thousands of applications. Large organisations and government institutions often attract hundreds or even thousands of applicants for their tenders advertised. As a result, screening the thousands of applications may be quite an arduous task for the procurement department of the organisation. Patrucco et al. (2016) findings are consistent with these arguments and added that scanning through the thousands of applications may be time-consuming and result in non-optimal decisions being made. Patrucco et al. (2016) however noted that making a bad selection may be unintentional, but may result from human error as a result of the limitations of human capacity. The problems that follow a bad selection are highlighted above including higher costs, substandard quality and time wastage (Quesada et al., 2010).

Yu et al. (2015) analysed a different dimension of manual procurement and notes that an organisation may become a victim of fraud whereby the bidder selected might be having no intention to fulfil the contractual obligation and is only intending to defraud the firm. Procurement laws require the invitation of all interested potential suppliers to submit bids for various contracts that are advertised. Yu et al. (2015) argued that the procurement policies that require indiscriminate invitation of bidders make firms more susceptible to fraudsters. However, Brandon-Jones and Kauppi (2018) negated the argument by claiming that such policies are advantageous as they encourage healthy competition from several bidders who strive to offer better quality and competent prices to be selected. However, Belisari et al. (2019) cautioned that organisations have no control over the applicants and manual processes may fail to detect fraudulent individuals posing as genuine suppliers. A bad selection may also mean that the selected supplier has no sufficient capacity to fulfil the contractual obligation, resulting in the aspect of non-performance risk. Thus, the lack of decision support is a major problem with manual procurement since individuals may fail to detect some lapses and fraudsters during the selection processes (Yu et al., 2015).

Belisari et al. (2019) noted that manual procurement approaches also result in a higher compliance risk given its relative lack of accountability and transparency. Compliance risk occurs when an organisation engages in nonprocedural procurement activities or flouts the established procurement laws (Belisari et al., 2019). Shi and Liao (2015) findings are consistent with this point of view, and they added that lack of compliance may raise conflicts amongst the stakeholders and open an organisation to costly litigation. The authors established that even with watertight procurement policy, individuals may still conduct underhand dealings and bend the procurement laws for their selfish reasons when a manual selection process is involved. Oh et al. (2014) developed similar findings highlighted that it is much more difficult to enforce compliance with manual procurement systems. The authors identified that there is a high likelihood that the individuals involved may lack objectivity or even engage in collusion with suppliers which defeats the purpose of the procurement process. Belisari et al. (2019) study further revealed that manual systems are much difficult to audit as individuals may deliberately engage themselves in deception and conceal critical information such that the audit trail is destroyed. Manual procurement systems have thus been associated with several ethical issues as highlighted by several cases and pieces of literature.

Oh et al. (2014) study further revealed that another inherent problem with manual procurement is the long process cycle. The long process cycle implies the lengthy procedures that are required to be fulfilled during procurement. Such procedures include requisition, advertising, tendering, negotiations, selection, contracting, delivery and finally payment processing. Such processes are quite time-consuming and require a lot of effort to ensure the success of the system. In some instances, the requisition of various products or services is often done with a high level of urgency. Manual procurement systems tend to have longer lead times with respect to the urgency of the requisition (Oh et al., 2014). Marinagi et al. (2014) findings are also consistent with those of Oh et al. (2014) by claiming that manual procurement systems are highly ineffective in instances where the requisitions are of high urgency. Marinagi et al. (2014) noted that more innovative mechanisms are needed to ensure that the procurement process is fast-tracked, while at the same time remaining within the organisation’s procurement policy. The problem may be resolved through the use of e-procurement whereby information is processed quickly and in a more accurate manner (Oh et al., 2014). E-procurement systems also store a database of data and procurement history which is quite important when there are urgent requisitions.

Marinagi et al. (2014) also noted that manual procurement systems are also faced with the challenge of inaccurate data which can be very detrimental to the performance of the firm. DeGroote and Marx (2013) identified some of the impacts that may result from the use of inaccurate data for decision making. Possible impacts include purchases being made at the wrong time, or even stock-outs due to the failure to detect re-order levels in good time. Similarly, manual procurement systems make it difficult to coordinate amongst different stakeholders (DeGroote and Marx, 2013). Besides inventory management, inaccurate data may adversely affect the selection process of a supplier (Marinagi et al., 2014). Ku et al. (2016) study expanded on the findings by highlighting the lapses that manual procurement has in screening applications. The authors added that the limitations stem from ethical issues as well as human errors which may result in a bad selection. Both pieces of literature support that e-procurement could thus play a major role in curing the limitations of inaccurate data. Sillanpää, (2015) proposed a solution that the systems may be integrated with a company’s ERP system such that inventory levels are accurately tracked seamlessly.

Kumar and Kumar Singh, (2017) stated that supplier management is usually much more difficult when the manual procurement approach is used. The process of ensuring the right supplier is selected and provides quality products and services throughout the term they are engaged is usually quite complex with manual procurement. In several instances, vendor performance is not usually maintained at the optimal, and the performance deteriorates at later stages of the engagement. Manual procurement systems thus result in late detection of flaws, deviations or performance gaps which makes an organisation vulnerable (Kumar and Kumar Singh, 2017). Schapper et al. (2017) however raised a dissenting view that manual procurement systems are better at enhancing supplier relationship due to a more direct interaction and negotiation. Manual procurement may thus support the retention of a reliable long-serving supplier as opposed to e-procurement. On the contrary, Kumar and Kumar Singh (2017) asserted that e-procurement would thus be an effective solution when it comes to vendor management as it provides an all-round view of all the information regarding a vendor in a real-time manner. E-procurement systems also help to store performance information and keep track of all the aspects relating to vendor engagement throughout the contract period (Kumar and Kumar Singh, 2017).

Value proposition of e-procurement

Another crucial dimension of the study is to map the relationship between electronic procurement and the KPIs of procurement performance that have been identified. The section thus assesses the findings of past researchers in relation to what value e-procurement provides to organisations. The information is useful in identifying what is already known with respect to the impacts of e-procurement which will also identify the information needs for the current study.

One value proposition that academicians and business leaders have on e-procurement is that it enhances compliance with procurement laws (Stritch et al., 2018). E-procurement also helps to eliminate any unnecessary conflicts between the stakeholders involved. Procurements laws majorly focus on issues such as ensuring the process leads to obtaining the best value for money. Value for money is a core aspect and factor in all procurement processes. E-procurement platforms assist companies to realize the objective of achieving value for money through the use of algorithms to make desirable selections (Stritch et al., 2018). Mogre et al. (2017) study is consistent with these findings and found that the laws further require equal and fair treatment of all the potential suppliers, with the goal being to encourage competition. Brandon-Jones and Kauppi (2018) concurred with the assertions by claiming that competition is important in procurement as it prompts providers of goods or services to improve on quality and quote better prices. E-procurement has facilitated information sharing amongst the concerned stakeholders which ensure everything is conducted procedurally. Furthermore, procurement laws are intended to make the process more effective, efficient, ethical and economical. E-procurement has helped to realise much of these benefits relative to the manual procurement process (Stritch et al., 2018).

Qrunfleh and Tarafdar (2014) established that e-procurement is a core tool for decision support amongst the procurement officials within a firm. E-procurement provides real-time and an all-round assessment of all vendors interested in a particular tender which results in a more accurate and meaningful assessment (Qrunfleh and Tarafdar, 2014). Ku et al. (2016) built on the study by claiming that a business may also be in a position to gain access to a wider base of applicants which increases the extent of healthy competition. The online nature of e-procurement is also essential in eliminating the geographical barriers that would hinder potential applicants from applying (Ku et al., 2016). Mansi and Pandey (2016) built on these arguments by proposing that e-procurement helps to attract a more diverse range of applicants which positively impacts competitiveness. Procurement officers do not need to manually scan through the paperwork which is arduous, hectic, and resource consuming. E-procurement platforms usually prompt applicants to sign up into portals which they fill with details in a structured way, and upload supporting documentation as well. Szabo (2015) added that e-tendering ensures that all the data collected is organised, thus making better selections. The automatic nature helps in scanning through the applications in real-time and providing recommendations to the procurement officers for approval (Qrunfleh and Tarafdar, 2014).

Qrunfleh and Tarafdar (2014) went further to claim that e-procurement results in improved supplier relationship management. The online platforms create a supportive environment for real-time communication with a supplier through the e-procurement portal or other electronic means. Nurmandi and Kim (2015) focused on the role of e-procurement in enhancing partnerships between an organisation and its suppliers. A positive effect is created due to streamlined information sharing and more accurate tracking of supplier performance within organisations (Nurmandi and Kim, 2015). An organisation is also able to accurately track and monitor the history of a supplier which is useful for their appraisal. However, other authors such as Schapper et al. (2017) gave dissenting views by claiming that manual procurement systems were better in cultivating supplier relationships due to the more direct contact and communication between the parties. Unlike e-procurement where communication is through the internet, manual procurement comprises of more direct contact which also builds longer-lasting supplier relationships (Schapper et al., 2017).

E-procurement generally leads to increased efficiency through automating much of the manual work (Ku et al., 2016). Procurement professionals are thus in a position to focus more on human-centric tasks rather than repetitive routine work that does not create value for the organisation. Thus, the organisation can make substantial savings on time as well as resources. Mansi and Pandey (2016) identified the various specific e-business activities that have resulted from the adoption of e-procurement. The major procurement activities that are automated include e-tendering, e-requisition, e-supplier selection, e-supplier relationship management, and e-procurement records management (Mansi and Pandey, 2016). The activities are a variation of the corresponding manual procurement processes that have been automated with the adoption of e-procurement. Kim et al. (2015) study also support the assertions by proposing that e-procurement may resolve the long process cycle problem. The lead time for procurement is also significantly reduced since electronic systems can support shorter cycles relative to human resources. The attribute makes the system suitable for urgent requisitions in times of emergency (Kim et al., 2015).

Ku et al. (2016) established that e-procurement systems result in increased levels of accountability and transparency of the system. Transparency enhances the image of an organisation and reduces the likelihood of conflicts amongst the stakeholders. E-procurement systems tend to be unbiased since they are undertaken through a computer system with less human interference on the selection. Campos and Rebs (2018) further expanded these findings by highlighting the role of e-procurement in enhancing the ease of system audits. Computer systems provide an audit trail such as the rationale for each decision can be retrieved and generated through the same system (Campos and Rebs, 2018). Ku et al.  (2016) went on to claim that the enhanced level of standardisation of work increases internal consistency and deters deviations from the normal. Conflicts are minimised when all the stakeholders understand that the selection process is not interfered with in a subjective way (Ku et al., 2016). E-procurement comprises of portals and platforms which are accessible to the public at any time. As a result, there is a higher level of public scrutiny which prompts the procurement officers to be more ethical in their decisions.

In a subsequent study, Brandon-Jones and Kauppi (2018) established that due to the enhanced transparency, an organisation can cushion itself from compliance risks. Procurement laws require that the process is done fairly without any form of favouritism towards any party. Ferreira and Amaral (2016) study revealed that procurement laws have had notable contributions to the streamlining of procurement processes and eliminating malpractices. However, the laws lack the capacity to fully eliminate the incidences of manipulation of the system (Ferreira and Amaral, 2016). The organisational leadership may be unable to fully ascertain the objectivity of the procurement professionals engaged in selection in manual procurement. However, e-procurement systems go a long way in eliminating the likelihood of malpractices within the procurement process (Brandon-Jones and Kauppi, 2018). Belisari et al. (2019) made a consistent claim that an organisation is thus able to protect itself against exorbitant legal suits that may hurt the performance of the firm, stall important projects of an organisation, or derail the normal operations of an organisation. Thus, e-procurement helps and organisation to be more compliant with the procurement laws and policies which ensures the smooth running of operations (Brandon-Jones and Kauppi, 2018).

Brandon-Jones and kai (2018) went further to state that e-procurement systems result in an easier process of tracking costs which improves the control systems of an organisation. E-procurement systems are usually integrated with a firm’s back end systems which creates a centralised platform where the supplies from several different suppliers can be tracked. Devaraj et al. (2012) established that the integration of e-procurement also helps to streamline other internal processes of an organisation, besides procurement. The integration of the e-procurement and other back end systems enables the management to have a broader view of resource utilisation which enhances the effectiveness of controls within the procurement function (Devaraj et al., 2012). The presence of real-time data also ensures that price comparisons are made across all existing suppliers to ensure the firm obtains the best value for money. However, some pieces of literature found the integration of the e-procurement system with an organisation’s back-end systems as being problematic. Christopher et al. (2018) differed with Brandon-Jones and Kauppi (2018) by arguing that such integration exposes an organisation to external threats such as cyber-attacks.

Patrucco et al. (2016) argued that e-procurement systems also result in a better quality of data within an organisation which improves the quality of decisions made. E-procurement systems are less prone to error due to minimal human interference (Patrucco et al., 2016). Glas and Kleemann (2016) agreed with these findings by emphasising the role played by e-procurement platforms in easing the access to vital supplier information. E-procurement systems usually support online repositories where supplier information, contract terms, history, and supporting documents are stored. Such information helps to keep the supplier in check, ensuring that the work performed is consistent with the contract terms (Glas and Kleemann, 2016). The higher quality of data enhances the performance of an organisation by enhancing risk mitigation.

Features of e-procurement systems that increase the success rate

Identifying the capabilities of effective e-procurement system is another objective of the study. The effective implementation of e-commerce requires a deeper understanding of the specific features that makes it more effective in streamlining the procurement process. The information is useful in identifying the currently available information as well as the extra information necessary for the study. Various organisations have different e-procurement systems they use which can either be customised to the needs of an organisation or obtained over the counter. Some organisations opt for tailored for their specific requirements, while other organisations may go for ready-made systems which can be purchased from software companies (Sillanpää, 2015). Either way, e-procurement systems have a range of features which makes them effective in streamlining the procurement function. The features with different e-procurement platforms may also differ, thus making some more effective than others. The section below discusses the various features of e-procurement systems as identified by various researchers in past literature.

The integration of the e-procurement system with the company’s ERP system or other back end system is an important feature that enhances the effectiveness of the system (Sillanpää, 2015). Sillanpää (2015) noted that a good e-procurement system can communicate with the existing system within an organisation through giving and receiving instructions. Liu et al., (2013) added that such integrations are useful for proper planning and tracking of organisational resources in real-time. The integration does not imply the access of all functionalities of the system by all users, as the system can still restrict the rights and information accessible to different users. Liu et al. (2013) identified the existence of advanced user control technologies such as logins, different approval levels; that reduce the likelihood of system manipulation. An integrated system is more useful to an organisation since the system can capture the procurement needs in good time and give the necessary direction to the concerned stakeholders. Furthermore, the integration results into increased ease of auditing the process which thus raises the level of accountability (Sillanpää, 2015). However, Christopher et al. (2018) found the integration of the external and internal systems problematic due to security threats which are identified as core challenges in contemporary organizations.

An effective e-procurement system should have an easy to use platform for its various users. A good e-procurement system should not be difficult to use for it to achieve the intended purpose (Patrucco et al., 2016). Complications in operating the system could have the effect of discouraging some users which is counterproductive to the process. The ease to navigate also helps the staff working in the back office to access vital supplier information which provides decision support (Patrucco et al., 2016). However, Khalfan et al. (2014) downplayed the negative effect of the lack of ease to use e-procurement platform by claiming that the target users are procurement professionals with correspondingly high knowledge of the systems. Patrucco et al., (2016) added that e-procurement systems should have a mechanism of storing the contract and supplier catalogues that are accessible to all the stakeholders. The availability of such information prompts the procurement officers within an organisation to be more accountable for their actions and decisions. Khalfan et al. (2014) added that the access of such information helps the senior management to carry out their control role more effectively.

Khalfan et al. (2014) study revealed that the e-procurement system should also incorporate key security features to ensure that data integrity is protected, and confidential company information is not accessed by unauthorized parties. All online platforms are posed with ever-intensifying security threats such as hacking. Christopher et al. (2018) agreed with the findings and added that the fact that e-procurement systems are integrated with ERP systems thus puts an organization’s data at risk of unauthorized access. Li et al. (2015) study supports these claims and adds that confidential company data is regarded as an asset as the information gives the organization a competitive advantage against its rivals. Thus, such information should not get into the wrong hands. Hackers and other malicious individuals often look out for any form of vulnerability within a system to take advantage of for their selfish reasons (Li et al., 2015). With the cognisance of this, organizations must ensure that their systems are supported by cutting edge security features that make them impregnable. Strong security features thus rank high among the requirements of an effective e-procurement system (Khalfan et al., 2014).

Effective e-procurement systems should support updates to incorporate new technologies with time. Glas and Kleemann (2016) noted that technology is not static but keeps on changing from time to time, which implies that what would be new technology today may be outdated technology after some years. Also, procurement laws in various jurisdictions or procurement policies within a firm may evolve with time. As such, the systems should support the changes in technology to ensure the e-procurement system is in line with the current business and legal environment. Brandon-Jones and Kauppi (2018) examined the stakeholders’ perceptions of e-procurement systems and established that the users of the systems also appreciate when the system updates keep up with technology advancement. System updates are also essential in removing any bugs that are identified to improve the system (Glas and Kleemann, 2016). Due to the evolving nature of system security threats, Vaidyanathan et al. (2012) noted that system updates are necessary to respond to the changing nature of cyber threats.

Drawbacks of e-procurement systems

Identifying the limitations of e-procurement implementation also forms part of the research objectives. The review of past studies on the limitations is crucial in acknowledging what has already been established in literature. The information is important as a consideration in the e-procurement implementation process. The adoption of e-procurement may have unintended negative consequences if the implementation process is not well managed, or when an organization has inadequate controls.

Schapper et al. (2017) noted that the adoption of an e-procurement system may result in over-reliance on the technology leading to laxity in controls and the conducting of due diligence. Prajogo and Olhager (2012) also established that even if the technology is meant to reduce human effort, it does not imply the complete elimination of the human role in carrying out controls. The simplification of the procurement process may unconsciously result in less and less effort by managers to check the compliance with procurement policies. Furthermore, the e-procurement systems may encounter technical errors that may result in erroneous decisions being made (Prajogo and Olhager, 2012). However, Ku et al. (2016) did not see it as a problem when human effort is substituted through the automation of the system. As such, they found it to be an advantage to the organization as the members of staff can shift their efforts to more human-centric tasks such as customer and supplier relationship management. Schapper et al. (2017) proceeded to claim that e-procurement systems are not fail-proof and may experience downtime or breakdowns that require human intervention. Failure to discover such lapses during operations may severely hurt the procurement performance of a firm.

Schapper et al. (2017) also argued that the adoption of e-procurement comes at an additional cost which is incurred during the development of the system as well as running the system. System development comes at a substantial cost for an organization which could be saved if the system was not implemented. Similarly, Karthik and Kumar (2013) established that the cost implication is a major deterrent to e-procurement implementation. Running the system results in additional costs such as regular maintenance, hosting, additional security requirements among others. The periodic updates to the system also cost an organization additional expenses (Schapper et al., 2017). The cost implications could mean that e-procurement may not be the best route for all kinds of organizations, especially small organizations with a small scope of operations. The extra cost implications for a firm may be viewed as a disadvantage of adapting e-procurement when the monetary value of the system is not felt. A cost-benefit analysis is thus essential in justifying the implementation of e-procurement to a firm (Schapper et al., 2017). However, Brandon-Jones and Kauppi (2018) negated these findings by asserting that the cost implication of e-procurement is quite minor as compared to the benefits that accrue from the implementation. Fernandes and Vieira (2015) also contradicted Schapper et al. (2017) by asserting that e-procurement results to lesser costs due to increased efficiency since only a leaner procurement department is needed as a result of process automation.

Liu et al. (2016) established that sometimes the e-procurement system may integrate poorly with the existing ERP systems leading to additional challenges for an organization. Lack of integration may thus bring about inefficiencies in how an organization operates and increase the level of complexity with the procurement function. Ineffective integration of the two systems may also result in a loss of data integrity and the security of the system (Liu et al., 2016). The scenario may also create friction between various staff within the organizations where responsibilities may overlap, or gaps may exist. Christopher et al. (2018) agreed with the findings and added that the integration of e-procurement also puts an organization at a higher risk of cyber-attacks. E-procurement systems open an organization’s systems to the public and thus increasing the vulnerability to hacking. Cyber-attacks can cause organizational wide damage in terms of loss of trade secrets and other intellectual property. Organizations may also lose financial resources when their system is hacked which may thus compound the losses (Christopher et al., 2018). Schapper et al. (2017) added that organizations are thus forced to make costly investments in system security, which would not be necessary if the e-procurement system is not implemented. Organizations thus have to increase their vigilance against system risks once they integrate e-procurement.

Vaidya and Campbell (2016) established that e-procurement systems make an organization open to the public which may increase the level of unwarranted scrutiny of the firm from various parties. The availability of public information may encourage competitors to use the information to assess the business strategies of a firm (Vaidya and Campbell, 2016). Regulators and authority may also use the online platforms to expand the scope of their regulations on a particular firm. However, Ku et al. (2016) argued that the opening up of an organization for public scrutiny should not be considered as a disadvantage, but rather a chance for a firm to assert its accountability and transparency. Manthou et al. (2016) supported the findings of Ku et al. (2016) by asserting that the aspect of being open to the public helps to build confidence and trust between the company and the external stakeholders. As a consequence, the brand image of the organization is elevated as well.

One of the major impediments to procurement performance even with the incorporation of the electronic systems is the resistance to change among the key stakeholders (Mansi and Pandey, 2016). People generally tend to fear change and thus tend to resist. The intentions of a company to introduce an e-procurement system may encounter opposition from the onset as employees may fear the consequences that the new system would have on their jobs. Ku et al. (2016) added to these findings by claiming that besides the employees, the suppliers who may also not be familiar with the new system may also avoid doing business with the organization. The lack of key stakeholder support towards the e-procurement system is a major challenge that may render the system ineffective (Mansi and Pandey, 2016). Elliot et al. (2016) further expounded on the findings by identifying the lack of management support as a key deterrent to the effective implementation of e-procurement.

Gaps in literature

Much of the elements and aspects of e-procurement have been researched and documented in past literature. However, there has been a minimal emphasis on the changes in e-procurement systems over time as technology advances. There is no doubt that technology has contributed to substantial improvements in the e-procurement functionalities over time. Thus, it could be insightful to establish how firms are coping with the rapidly changing technology in an ever-intensifying competitive environment.

Reflection on the findings

There is indeed a wealth of knowledge that is available in past literature concerning e-procurement. One major theme that is explored in the literature review, and that comprises part of the research objectives is the applications of e-procurement. One major application identified is the role of e-procurement in decision support. E-procurement is also utilized by organizations to enhance the level of accountability and efficiency. Computerized systems are easy to audit which thus prompts the users to strictly abide by the procurement policies. Also, e-procurement helps to eliminate much of the manual work that is involved throughout the procurement process. Another objective of the research is the determination of the effectiveness of various e-business activities that enhance the procurement function. Some of the processes of e-procurement identified include e-tendering, e-requisition, e-supplier selection, e-supplier relationship management, and e-procurement records management. The automated processes help to eliminate inefficient manual processes in procurement, and the likelihood of errors is minimized. However, there are shortcomings of these effects of technology that have also been highlighted in various sources of literature. Such shortcomings include the increase in laxity in enforcing controls when the major processes of procurement are automated. Also, internet-based systems reduce the human touch that is crucial in supplier relationship management. However, the loss of the human touch is compensated by a quicker and more accurate tracking of supplier information which thus helps to improve the supplier relationship management.

The literature review also examines how e-procurement has helped to streamline and enhance the procurement function within companies. The aspect is in line with the third objective of determining ways through which e-business mechanisms enhance the procurement process. Some of the factors identified include the reduction of procurement risk which encompasses aspects such as making a bad selection, encountering fraud, incurring higher costs, among others. E-procurement has also been identified to reduce compliance risk through ensuring control processes are in place to satisfy all aspects of the procurement policy of a firm. The final objective of the dissertation is to assess the capabilities that are necessary to ensure the success of an e-procurement mechanism. Some of the factors identified in the literature review include a user-friendly interface, integration with the existing ERP systems, cutting edge security features, among others. The system should also support regular updates to ensure that it keeps up with the latest security features and changes in technology. However, the implementation of the e-procurement systems has been identified to create a vulnerability in the company’s systems when it opens up to the public. New system security threats which include hacking and fraudulent activities arise and come at an additional expense to a company from another dimension. The system implementation thus comes at an additional expense which impacts the cost structure of an organization. Thus, the literature review covers all the elements of the dissertation objectives.

The information to be gathered in data collection is meant to build on the findings of the literature review as well as provide more insights on the practical applications of e-procurement, beyond the scholarly realm. Most studies have focused on e-procurement as a single element, but not as a collection of several distinct e-business activities. There is a limited focus on the specific applications of the specific e-business activities within organizations, which the data collection exercise will focus on. Further information on the impacts of the specific e-business activities on procurement performance will also be sought in data collection.

Chapter 3: Methodology

The methodology section describes the research approach and methods that the researcher has used to collect data, analyze it and arrive at conclusions. There are several methods of research which include quantitative research and qualitative research (Bentahar and Cameron, 2015). Analyzing the effect of e-procurement mechanisms to procurement performance has been studied through the assessment of the operations of various organizations within Australia. The data utilized for the study has been obtained from both private and public organisations, with the intent of comparing procurement performance when the systems are manual, or electronic.

Research design

The research approach was an exploratory case study of e-procurement application in private and public organizations, with the intent of meeting the objectives of the dissertation. The case study approach is an in-depth analysis of a phenomenon through the guidance of the specific research objectives (Flick, 2015). The case study methodology is essential in expanding the current knowledge base on a given subject. The case study approach entails an extensive collection of data from diverse sources, analyzing the data and drawing patterns and logical conclusions based on the information (Bentahar and Cameron, 2015). The research is qualitative since it aims at describing various aspects as raised by the research questions. The survey approach will be used to collect data from various procurement personnel working in private and public institutions through interviews. Quantitative research approach was inappropriate for the study since it does not entail the testing of a hypothesis, but rather it intends to uncover a deeper level of knowledge on the dissertation topic. The data collected from the interviews will be analysed using thematic coding to ensure meaningful and presentable findings are developed.

The dependent variable in the research is procurement performance, which is described as the extent to which an organization can attain its goals and increase its efficiency within its supply chain. On the other hand, the adoption of e-procurement is the independent variable in the study. The research assesses the relationship between the two variables, as it seeks to determine the elements of e-procurement that results in the increase or decline of procurement performance. The research is inductive as it does not begin with a predetermined hypothesis (Bentahar and Cameron, 2015). E-procurement is a relatively new phenomenon and thus the study intends at generating new information on the emerging area. The study will thus gather information and make conclusions about the study afterwards after the analysis of the collected information. The inductive approach is important in theory building in a relatively new area of e-procurement.

Data collection and analysis

The collection of primary data was done using interview sheets containing the questions and voice recorders. The interviews were conducted face to face with all the participants by the researcher at different times based on prior appointments. All the participants were employees in a management or supervisory capacity. The interviewing approach enabled the researcher to control the research process through the use of open-ended questions. Open-ended questions leave an opportunity for the researcher to seek for clarifications and request for additional information whenever necessary. The interview questions were formulated around the research objectives and sought to gather information regarding the operational aspects of e-procurement, specific e-business practices in procurement, features of e-procurement systems, and impacts on procurement performance.

To supplement the primary data, secondary data used was derived from published materials such as publications, industry journals, past literature and financial reports of different organizations. The secondary data is useful in determining the comparison in performance between manual procurement and e-procurement. Also, the features of e-procurement that causes the difference in performance between various institutions may be gathered through the analysis of past literature. The secondary sources of literature used were all current, falling within less than 6 years since their publication.

The research was primarily qualitative and thus the qualitative data analysis (QDA) techniques were utilized. QDA entails the analysis of the responses gathered from the interviews and drawing logical patterns from information gathered (Bentahar and Cameron, 2015). Since a lot of raw information is gathered through the interviews, it requires to be reorganized and presented in a way that it is meaningful and easy to understand. Thus, thematic coding is an important process in qualitative research as it helps in organizing the raw information collected into a structured and systematic manner that is easy to interpret. While coding, the four interview transcripts for each of the four respondents were used, together with different colours of highlighters. The identification of the themes was guided by the research objectives, and the themes that provide solutions to the dissertation objectives were identified. Each major theme identified was highlighted with the same colour in all the transcripts, and a different colour for each different theme applied. The analysis of the interview transcripts was done in an iterative manner to ensure that the content is well understood, and all meaningful information is extracted sequentially. The themes identified and highlighted were thus used as the sub-topics of the results section. After separating the themes, their meaning is interpreted and they are described in the report which is supported by the evidence.

Research philosophy

The interpretivism research philosophy was used throughout the study. The approach entails the collection of data and information on the given research phenomenon and interpreting the meanings and implications of the information collected in the end (Hughes and Sharrock, 2016). The study is testing a phenomenon which it has no capacity to change, but only intends to report on the facts as observed through the data collection exercise. The research approach is best suited to study a phenomenon that has not yet been determined in the past. Also, the aspect of e-procurement is dynamic in nature in the sense that it is still developing and may change from time to time. Furthermore, the study is based on a technologically related topic which requires a deep analysis given the rapid changes in technology that are prevalent in the contemporary world. The combination of the above factors makes it difficult to form predictions on the outcomes of the research, which justifies the interpretivism approach. The other research approaches that could be utilised instead includes positivism. The positivism research philosophy relies on factual data that is testable or can be logically measured and determined (Hughes and Sharrock, 2016). The research findings, therefore, have to be observable, measurable, and quantifiable. Given that the research is qualitative and comprises of interpretation of data whose objectivity is not guaranteed, the approach is not appropriate for the current study. The constructivism research philosophy is the other alternative that entails the construction of reality from the human mind. The approach holds that reality is the product of the interaction of human intelligence and real-life experiences (Hughes and Sharrock, 2016). Again, the constructivism approach is inappropriate given the current research objectives that require information to be established after the investigation of primary and secondary data.

Sampling

The mode of sampling used is convenience sampling whereby the research participants are selected based on their willingness to participate (Bentahar and Cameron, 2015). Data collection was based on interviews done by the researcher towards key individuals and professionals working in procurement, logistics or supply chain departments of different institutions. The interviewees were workers working in various private and public organizations within Australia. There were a total of 4 participants who volunteered to participate in the study, two being workers in the public sector and the other two from the private sector. The nature of the study is qualitative which implies that only a small number of research respondents was necessary. The nature of the research necessitated the balancing of the number of participants from private and public institutions. The research sample was thus the respondents who volunteered to participate in the interviews, which is the convenience sampling approach.

Research ethics

The research ethics entails the guidelines that the researcher applies to ensure that the research is conducted as per the acceptable standards of ethics. The research has been conducted under the established ethical principles of research practices. One ethical principle that the researcher is committed to honesty in the presentation of factual data. All the data, results, and findings presented are factual and are a representation of the findings derived from the research process. The research also protects the confidentiality of the research participants. Furthermore, the research acknowledges the intellectual property of past researchers by acknowledging the works of other authors by providing proper citations. The research also adheres to the principle of objectivity through ensuring the factual presentation of findings without prejudices.

Limitations of the study

One limitation of the study is in the sampling technique used. The convenience sampling opens the research to volunteer bias. The convenience sampling technique is recognised as a non-probability sampling technique. The research participants who volunteer to participate may have different attributes and opinions with those who decline to participate. Furthermore, the study is limited to Australia since all the research participants are from Australia based companies. Thus, there is a likelihood that the characteristics in Australia may differ for companies from other parts of the world. Resource constraints also resulted in the concentration of data collection in one region which could thus result in a cultural bias in the information gathered. The use of secondary data within the research could also be another limitation as such information may be outdated and thus unreliable.

Chapter 4: Research results and findings

The purpose of the study is to investigate various aspects of e-procurement, examine how organizations use e-procurement features, and assess the implications of the adoption of e-procurement towards organizations. To attain this, research data has been collected to meet the objectives of the study as well as propose solutions to the research problem. The section presents the information gathered from the study from both the primary and secondary data gathered. The section evaluates the information gathered in light of the research objectives and research questions raised within the dissertation. The findings relate to the procurement performance when the electronic procurement approaches are used. Identifying the causes of differences in performance between various organizations when different e-procurement approaches are used is also part of the findings based on the research objectives.

Application of e-procurement within organizations

The first research question is aimed at identifying the specific e-procurement approaches that are used by organizations. The research question is also connected with the first objective of determining the specific applications of e-procurement to an organization. The objective requires descriptive information which was obtained though asking the interviewees to highlight and describe various e-procurement activities they are familiar with. The theme is important for the identification of the business problems that e-procurement seeks to avert. The second respondent who is a procurement systems expert in a public company identified the major e-business activities in procurement by indicating that “some of the most fundamental applications of e-procurement systems across several companies today include e-tendering, e-requisition, e-supplier selection, e-supplier relationship management, and e-procurement records management.” The above applications are a departure from manual procurement systems which shows that e-procurement entails quite substantial procedural changes in the procurement function. The other interviewees had similar responses and each mentioned at least some of the above e-procurement applications as well. The information identified from the interviews is consistent with the findings of Mansi and Pandey (2016) which are presented in the literature review in terms of the specific e-business activities that form part of e-procurement. The information reveals that e-procurement has several different components, and may thus be implemented wholly or partially through the adoption of some of the e-business functionalities. From the finding, different organizations have adopted e-procurement at different levels that could result in the variations in procurement performance.

Another part of the study was to understand the various e-procurement activities identified and understand their practical application within companies. Thus, the interview respondents were asked to describe the various ways in which e-procurement activities identified are used within organizations. The first respondent who is a procurement official working in a government institution described the e-tendering practice by stating that, “there are several activities that fall under e-tendering, some of which include advertising, collection, and submission of tender related information from applicants through an online interface.” E-tendering thus results in a major shift in the way organizations handle tender applications from potential suppliers, through minimizing manual processes. Due to the magnitude of changes, there is a likelihood that the implementation of e-tendering may face some resistance from both internal and external stakeholders. E-tendering processes are significantly different from manual tendering processes which has been used for several decades. Thus, it may take a significant amount of time for business communities around the world to fully embrace practices such as e-tendering. In some cases, manual tendering has been credited with helping with physical verification of documents which helps to prevent frauds. E-tendering eliminates the possibility of manual verification of documents which may make an organization susceptible to frauds. The third respondent who is a procurement expert in a multinational organization also stated that “e-tendering has not only helped in creating efficiency and minimizing human effort but has also resulted in reduced paperwork.” Less paperwork implies more efficiency since electronic records are easier to retrieve and work with. The reduction of paperwork helps a company to be more efficient and save on costs as well.

E-supplier selection is usually the next stage after e-tendering as it entails the award of the tender to the suitable supplier that is identified. The fourth respondent who is a procurement professional in a government department explained that “e-supplier selection is an online-based system that helps to pick the best supplier out of a pool of several applicants based on a given set of commands fed to the system.” E-procurement platforms are programmed to analyze and rank applicants depending on predetermined criteria. The e-supplier selection system assesses the capabilities of all the applicants who submit their tenders and give their recommendations based on the predetermined selection criteria. The function results in a more transparent and objective selection process which helps deal with the challenges of corruption and collusion between different parties involved. Corruption has been a major concern in procurement for both public and private institutions which may be to an extent dealt with through e-supplier selection. However, e-supplier selection implies the surrender of some of the control of the supplier selection by an organization’s management. Despite the advantage that is gained from the objectivity in the selection, the loss of control by procurement officials may be deemed to be negative in some cases. The over reliance on IT systems may result in the loss of strategic partnerships and relationships the organization may have had in the past with other organizations.

E-requisition is another application of e-procurement that was described in the interviews. The first responded described e-requisition as “an internet-based platform whereby the members of staff can submit purchase requests, which are then approved through the same online platform.” E-requisition thus describes an automated process through which users of various goods and services within organizations seek authorization for the company to procure such goods. E-requisition thus implies the computerization of the entire requisition process such that it is all conducted through an organizations ERP system, without involving paperwork. The second respondent added, “e-requisition plays a significant role in reducing the time taken in the approval stages of a purchase.” There was a consensus amongst all the interviewees that e-requisition substantially cuts the time required by an organisation to purchase goods or services through significantly reducing the level of bureaucracy. Timing has been identified as a key performance indicator of procurement performance and thus e-requisition helps in increasing the efficiency of the process. Despite the advantage of a quicker process, it is crucial to weigh between efficiency and control. The requisition exercise is one of the important control measures used by organizations to make sure that the goods or services purchased are necessary to the organization. From the interview responses, it was gathered that speed should not be the only concern when it comes to the approval of requisitions. The process should be considered a sensitive stage where careful consideration should first be made before an organization committing to making a purchase. Despite the manual requisition being viewed as bureaucratic by some stakeholders, the process mitigates malpractices and ensures compliance with the budget.

E-supplier relation management was also identified as another application of e-procurement from the interview responses. As the name suggests, e-supplier relation management means an online system of supplier relationship marketing. Supplier relation management entails all the actions undertaken by organization to manage interactions with third parties who are providers of goods and services to an organization to obtain optimum value from such interactions. The third respondent stated that “e-supplier relationship management is a tool that supports the strategic planning and management of all the interactions with the organization’s suppliers.” Although supplier management has not been included as a KPI for procurement performance in the literature review, its emphasis as an additional determinant of supply chain performance by the interview respondents was quite clear. The interview respondents identified the system to have a major contribution on e-procurement in enhancing procurement performance. E-supplier relationship management provides a solution to the problems with managing supplier information that are commonplace in manual procurement systems. Satisfied suppliers are valuable to a company as they assure the sustained supply of essential goods to a firm. One divergent opinion on the role of e-supplier relationship management as identified by the fourth respondent is that it eliminates the human aspect of supplier relationship which has traditionally been vital in supplier management. The aspect of over reliance on the IT systems to be the primary tools of supplier relationship management may erode the quality of relationships between an organization and its suppliers.

E-procurement records management was the other facet of e-procurement identified by the research respondents. The fourth respondent stated that “the central storage of vital supplier information empowers organizations to become more accountable and transparent, as all decisions are backed up with a justifiable evidence base that is easily retrievable.” E-procurement records store important information such as contracts, agreements, product catalogues, pricing, supplier catalogues, among others. The responses gathered are consistent with the past literature analyzed on the importance of storage of accurate and verifiable data in procurement. However, the use of online repositories implies that sophisticated IT knowledge which may not be common for everyone may be necessary.

Contribution of e-procurement towards improved procurement performance

The second major theme of the study was the contributions that e-procurement has had to procurement performance. The interviewees were then asked to describe e-procurement systems impacts procurement performance. One of the most outstanding benefits that are widely documented in the literature, and was also brought forward by the research respondents is the decision support role of e-procurement. The first respondent stated that “decision support is an important function performed by information systems in providing users with accurate and structured information necessary in making the right choice.” E-procurement systems are designed to reduce the level of human effort especially in routine and repetitive functions that do not add value to the process and the organisation in general. The second respondent noted that “the role of decision support is to divert human effort towards more human-eccentric tasks needed to boost the performance of the organization.” The responses show that there is increased pressures in the contemporary business world for organizations to enhance their internal efficiency, or get surpassed by rivals. Improving the quality of decisions is one of the ways that organizations increase their efficiency and makes them formidable competitors.

The second respondent added that “the reduction of human roles in procurement also has the consequence of eliminating human errors from the procurement process which makes it more efficient.” Computer systems are highly accurate and fast in performing tasks relative to human beings. Ultimately, the decision support role also results in declined operational costs since it eliminates the need of additional unproductive labour in an organisation Furthermore, with the decision support in place, the time taken for the procurement process is significantly reduced. Some concerns have been raised that the increased reliance on e-procurement systems may lead to laxity on the part of procurement officials and management in performing their control roles. Some of the users may be prompted to make assumptions that everything generated by the system is sufficient to make decisions, and thus overlook their control roles. In reality, some flaws with the e-procurement system due to programming, bugs or viruses may result in erroneous results. Thus, despite the efficiency created by the systems, the control roles by the management must never be relegated to the systems.

Another benefit that is obtained from the adaptation of procurement is the increased level of accountability and transparency as stated by the interviewees. The fourth respondent noted that “the use of e-procurement opens the procurement process to scrutiny both internally and externally.” Since all the decisions made are open to the scrutiny of the management, the public, and the regulators, the users are prompted to act within the bounds of the procurement laws and policies. The third respondent added that “the higher level of transparency when e-procurement is implemented increases the level of confidence of external stakeholders towards an organization’s procurement system.” Electronic procurement systems leave an audit trail and a log for all the activities that the users perform which makes it easy to investigate any malpractices. E-procurement systems are a major improvement from manual procurement systems which lacks transparency and are prone to manipulation. Although accountability and transparency have not been included in the literature review as a KPI for procurement performance, their contribution to a better procurement system is undeniable.

The increased level of accountability and efficiency has another role in diminishing the various risks associated with procurement, such as compliance risk. Compliance with procurement laws and policies has been identified as a KPI for procurement performance. The third respondent stated that “e-procurement has been quite crucial in eliminating corruption tendencies that have been a major challenge especially in public procurement.” There have been several cases of collusion especially in public procurement that have necessitated the tightening of procurement laws. The contributions from the respondents are in line with the findings in the literature review section. However, it is crucial to note that the increased transparency of an organization is to an extent disadvantageous as it raises the level of public and regulatory scrutiny in the organization. Public scrutiny opens the organization to security threats from hackers and other malicious individuals. Also, any suspicions of malpractices may result in the organization attracting legal suits from the regulators as well as the public which may derail the company from its core objectives.

Essential features and capabilities of e-procurement systems

Another theme for the study was to identify the key features and capabilities that makes an effective e-procurement system. Thus, the interviewees were asked to identify and describe features that increase the likelihood of success for an e-procurement system. One key feature that stood out from the interview responses is the ability of the system to integrate with existing ERP systems. The third respondent stated that “the benefits of e-procurement are only fully realised when the system appropriately integrates with the existing management information systems within the organisation.” The integration implies that the back-office staff can monitor the procurement activities in real-time which thus result in better communication flows throughout the organization. The second respondent added that “the integration is necessary to ensure that other non-procurement functions such as inventory management and cost controls are appropriately enforced.” The organization also needs to track all resources using ERP systems as well as the back end control systems used by the management. The fourth respondent added that “the e-procurement system should be compatible with the hardware devices and the operating systems currently used by an organization.” Compatibility is a core issue where information systems are concerned since technology keeps evolving from time to time. Integration has widely been regarded as an advantage but some system experts reckon that it may create vulnerability to the security of the system. The implementation of a new e-procurement system may result in the introduction of new untested features to the organization’s back end system which is risky to the company’s data and system safety.

With the fast evolution of technology, system security seems to be a major concern for all the interview respondents. A good e-procurement system should incorporate effective security features that ensure that the security of company information is not compromised. The second responded stated that “hacking is a major challenge that all organizations that conduct various e-business activities are exposed to.” Given the prevalent threat to system security that exists with the implementation of e-procurement, it is only prudent that the systems should comprise of strong security features capable of defusing any threats and preserving the integrity of the company’s information. The first respondent noted that “a breach of the security of the e-procurement system could be highly costly to an organization, which prompts the demands for additional security features with any information system implementation.” From the responses, it was gathered that ensuring that the systems are secured all the time is an expensive affair for the organization.

Furthermore, the e-procurement system should support updates that may be required due to changes in technology and demands for additional security. Updates also enable the removal of any bugs that may be negatively affecting the usage of the e-procurement system. Ensuring adequate system requires a company to make a substantial investment which is something that stakeholders need to be aware of from the beginning. The system updates also imply that the organization requires setting up an IT team in charge of overseeing and performing maintenance on the e-procurement system.

The first respondent noted that a good e-procurement system should incorporate budget information that is accessible to all users for them to make informed decisions. The third respondent stated that “budget information should be accessible to the procurement officials to enable them to make informed decisions that are within the limits of the budget set out by the organization.” Budget information includes expenditure planning for a company over a given period, which should not be exceeded without the proper authorization. The use of the e-procurement system that incorporate budgets thus raises the level and quality of cost analysis performed by the management of the organization. Also, budget information helps the procurement officials justify and defend their decisions. Information has been regarded as a key resource to an organization and must therefore be safeguarded and made available to those who need it.

Drawbacks of e-procurement systems.

The objective to critically assess the e-procurement systems also requires the study to explore the limitations of using electronic procurement. Thus, the drawbacks of e-procurement system implementation was the other theme identified. The decision-makers need to be aware of such information to weigh the pros and cons of implementing the systems. The research participants were thus asked to describe the shortcomings of e-procurement systems. A major concern with the implementation of e-procurement systems has been security fears due to the opening up of an organization to the public. The second respondent stated that “the integration of the e-procurement system to a company’s ERP system results into a security vulnerability that may be exploited by hackers, given that they can access the e-procurement portals.” The security threats thus require investments in new security systems and features that come at an additional cost to a company. An organization may also require setting up an in-house IT team to oversee and perform maintenance of the e-procurement system. The first respondent noted that “the implementation of e-procurement may be considered too expensive for small organizations when the costs incurred exceed the perceived benefits.” Small organizations that only have a limited scope of procurement activities may find the implementation of the program to be too expensive for them as compared to the realizable benefits.

The system may come with additional complexities that may negatively affect workflows or discourage some suppliers from using the system. Poor integration of the e-procurement system and the ERP system may also be a hindrance to the smooth procurement process. The third respondent noted that “a system that is too complicated and not user-friendly may put off some suppliers from interacting with the system which defeats the purpose of automation of the procurement system.” A good system should comprise of easy to follow functionalities that make it easier for the users to interact with the system. The poor integration of the e-procurement system has been a major reason for the failure of the systems. The second respondent noted that “most of the e-procurement system problems stem from system design flaws that henceforth hinder all efforts to improve procurement performance.” When an IT company without sufficient capacity is tasked with e-procurement implementation, there might arise some issues with a system design that make it difficult to operate the system.

Another drawback of e-procurement systems implementation is that it may face change resistance from key stakeholders when it is not properly understood. The fourth respondent stated that “the failure of fully understanding the e-procurement system and the changes it comes with may naturally breed resistance from the employees.” Human beings are naturally resistant to change and tend to fear anything that they do not fully understand. Some stakeholders may develop the perception that automation is a threat to their jobs and thus work to frustrate any efforts to implement e-procurement. The implementation may also be a change to the status quo which they may not be willing to support due to various reasons. For instance, some officials who are used to colluding with suppliers for selfish gains may be unwilling to support a change in the system.

Assessment of the findings.

The findings obtained from the interviews were to a large extent consistent with the information from the secondary data. However, some additions and deviations in data have also been identified and highlighted in the results section. For instance, the literature review highlighted the major KPIs of procurement performance which include reduced time cycle of the process, cost savings and enhanced vendor performance. From the interviews, additional KPIs were identified including enhanced supplier relationship management and enhanced accountability and transparency. Other elements such as the capabilities, features, activities and benefits of e-procurement systems are to a large extent consistent. On the capabilities of the e-procurement systems, an additional feature with is the incorporation of budget information which was not part of the literature review was identified from the interviews. The results reveals that e-procurement is no doubt beneficial to an organization, but a lot of work is needed to ensure its success. Organizations have to carefully and meticulously invest in systems that create value, and also ensure that the staff are given sufficient training to effectively interact with the procurement system.

Chapter 5: Discussion of the results.

The discussion of the results section comprises of an in-depth analysis of the findings obtained from both the primary and secondary data collection. The discussion provides a description of the significance of the study as well as the implications of the findings towards various stakeholders. The discussion connects what is already known about the research topic with the new knowledge that has been gathered in light of new evidence that has been collected. The discussion has been divided into the various thematic sections as per the dissertation objectives. More specifically, the discussion looks at the current knowledge of e-procurement as explored in the introduction and literature review compares and analyses the new knowledge that has been gathered in the research findings.

The case for the implementation of e-procurement.

One research question is whether e-procurement results in a better procurement performance within an organization. The answer to the question is that despite e-procurement having both positive and negative effects on an organization, there are considerably more advantages than disadvantages. As a result, several organizations around the world are moving towards automation intending to cut on costs and boost their efficiency (Chomchaiya and Esichaikul, 2016). E-procurement is one aspect of business process automation that counts among the several aspects of automation that has become widely accepted.  However, with every change comes resistance, which is also true with the implementation of e-procurement. Despite the benefits that organizations stand to gain by implementing e-procurement, the lack of understanding of e-procurement could potentially hold several organizations back from taking the step (Mansi and Pandey, 2016). The failure to understand how e-procurement operates may also result in a lack of managerial commitment, which may thus result in failed implementation. As a result, research is an appropriate way of expanding the knowledge that stakeholders have towards e-procurement. Thus, stakeholders ought to understand that organisations stand to gain more by implementing e-procurement. E-procurement is a strategic tool that has the impact of providing a competitive advantage to organizations (Chomchaiya and Esichaikul, 2016).

E-procurement comes with a myriad of benefits to an organization which justifies its implementation. E-procurement has the effect of boosting efficiency within an organization which results in streamlined workflows and reduction of human effort.  Human effort is reduced especially with routine and repetitive tasks that tend to be highly arduous and consumes much time (Campos and Rebs, 2018). The results highlight decision support to be a core function of e-procurement, which is consistent with the findings of Qrunfleh and Tarafdar (2014) in the literature review. For instance, reviewing hard copy documents from supplier applications one by one, compiling the scores manually can be quite time consuming and tedious when there are hundreds of applications for a given tender. As a result, e-tendering systems are designed to collect supplier information in an organized and structured manner that ensures that information is accurately collected and tracked from the onset of the transaction. E-procurement implementation is thus a major change to an organization that may cause uneasiness to some of the procurement officials. First, some of the officials may feel that their jobs are threatened by the changes as some of the manual processes may be replaced through automation Campos and Rebs, 2018). However, this is an advantage to an organization since it may require a leaner procurement department and thus saving on costs.

The enhancement of accountability and integrity in the procurement department is another reason as to why organizations should implement electronic procurement as per the results of the study. The findings are consistent with the contributions of Ku et al. (2016) and Campos and Rebs (2018) that e-procurement enhances accountability, transparency and thus eliminating the incidences of collusion amongst procurement stakeholders. Some of the forces of resistance to change may be fuelled by dishonest individuals who may be used to bending of procurement laws and conducting malpractices (Shi and Liao, 2015). The cases of collusion among procurement officials and suppliers to unfairly grant favours to given parties are often quite common which creates a negative image for the procurement profession. E-procurement implementation thus promises to cure this mischief in both public and public institutions by making sure that the selection of applicants is by merit and not through corruption.

Another problem that has been common in procurement is favouritism and nepotism, whereby suppliers are awarded tenders not by merit, but by their relationship with the procurement officials (Belisari et al., 2019). E-procurement opens the procurement activities to public scrutiny which thus makes it quite difficult to conduct any form of malpractices. E-procurement systems are easier to audit as compared to manual procurement systems. In manual procurement, dishonest officials may manipulate the selection process to their liking and distort or hide evidence such that it becomes almost impossible to prove the fraud. However, e-procurement records management platform is a game-changer as such dishonest officials will no longer have the power to distort evidence that is safely stored and easily retrievable from the online repository. E-procurement in itself is thus a way for organizations to enhance their internal controls in the sense that all decisions made have to strictly adhere to the laid out procedures and follow the right authorization channels (Belisari et al., 2019).

Key considerations in implementing e-procurement

Identifying the features and capabilities necessary for successful implementation of e-procurement is part of the research questions that are answered in this section. Several factors have to be put into consideration before an organization settles on e-procurement implementation. The first thing to consider is the cost implication vis-à-vis the expected benefits (Graham et al., 2013). The research findings are that e-procurement implementation may not work for all types of organizations, which is consistent with the views of Schapper et al.  (2017). Small organizations which deal with a limited number of suppliers may find it unnecessary to incur exorbitant costs for a system which will not be used much (Schapper et al., 2017). Investing in an e-procurement system is justifiable in relatively large organizations that tend to have several operations and a wide scope of procurement activities. The costs involved in e-procurement implementation include the systems development or purchase cost that an organization incurs to obtain the system. Besides the initial costs, other expenses include maintenance, system security, system updates, hosting, among others. The implementation thus entails a substantial initial investment cost followed by regular maintenance costs necessary to run the system (Schapper et al., 2017). Thus, a cost-benefit analysis is the major consideration in e-procurement implementation, other than deciding to implement the system blindly.

Another key factor to consider is the compatibility and integration of the e-procurement system and the company’s back end systems. The systems need to be designed in a way that it integrates with an organisation’s ERP system without compromising the integrity of the company’s data (Tyagi et al., 2014). The integration ensures that the procurement officials gain access to important information such as the budget. Likewise, other departments within the organisation can understand the activities being carried out in the procurement department. Thus, e-procurement results in better communication flow throughout the organisation, and better coordination of organisational activities. However, integration raises fear of a heightened system security risk. The system security risk increases because of the opening up of the system to more users, some of whom may attempt to gain unauthorised access into the system. The risk may, however, be mitigated through enhancing the level of system security through elaborate authorisation procedures, user logins, among others (Walker and Brammer, 2012).

System security thus becomes another key consideration in the implementation of an e-procurement system. System security entails the features put in place by the system developers to ensure that no one gains unauthorised access into the system at any given time. A breach in system security may potentially jeopardize the operations and competitive advantage of a company through the exposure of confidential data (Vaidyanathan et al., 2012). Such exposure may result in a loss of competitive advantage. Another consequence of the breach in system security is the negative reputation towards the brand that may develop amongst the stakeholders (Tyagi et al., 2014). Thus, e-procurement systems must have advanced security features that would prevent such unauthorised access.

Challenges with the implementation of e-procurement

Several factors may hinder an organisation from effectively implementing e-procurement. Such factors should be understood by the various procurement stakeholders to effectively make appropriate decisions. The factors are highlighted in the results section and include internal and external elements. The lack of management commitment is one hindrance to e-procurement implementation. All changes in organisations are usually implemented with the guidance and support of the management. Therefore, the failure to obtain support from the management may imply that the implementation process is almost impossible. The management may fail to support the implementation for various reasons such as resistance to change. The new system entails new ways of doing things which may result in a level of uncertainty amongst the managers involved. Besides the management, the resistance may also come from other employees in the procurement department who may fear to lose their jobs as a consequence of automation. Thus, the implementation of the new program must be accompanied by sensitisation and education of the relevant stakeholders on the rationale of the new system.

The cost implication is another hindrance to e-procurement implementation, according to the research findings. The cost to acquire the e-procurement system through in house development or outsourcing may be quite substantial which may be a challenge for some organisations. The findings are similar to the views of (Karthik and Kumar, 2013) that the cost is a deterrent to the implementation of e-procurement especially amongst small organisations. However, it is key to note that the highly significant cost is the upfront cost which includes the acquisition of the software. The regular maintenance costs, on the other hand, tend to be relatively lower and thus gives a greater value to an organisation in the long run. However, organisations must commit significant resources to ensure they succeed in implementing e-procurement. Conversely, e-procurement is also associated with cost savings which result from the increased level of efficiency. Thus, the findings of Brandon-Jones and Kauppi (2018) are a departure from the research findings with the claim that the cost implication is minor expense as compared to the expected benefits. The automation may also imply that a leaner procurement department is needed and thus saving on costs with fewer human resources (Fernandes and Vieira, 2015).

Problems with the integration with the existing ERP systems is another major hindrance to e-procurement implementation. The findings are similar to the point of view of Liu et al. (2016), that the failure of the systems to integrate properly is a major hindrance to implementation of e-procurement. In some cases, the two systems may be incompatible due to different types of technology. As a result, the failure to integrate may imply that the procurement system does not function at the required level. The system may not achieve the required efficiency if it does link up the procurement function with other departments involved in operations. The failure to implement e-procurement may also be fuelled by the fear of public scrutiny that results from such a process. However, the leadership of an organisation should support any measures that encourage transparency since they are also assured of a stronger internal control system (Manthou et al., 2016)

Reflection on research objectives

The first objective was to identify and critically appraise the various applications as well as limitations of e-procurement. The objective has been achieved though highlighting and describing the various applications of e-procurement which are derived from both the primary data collection as well as the literature review. E-procurement entails the automation of key procurement processes which results in activities such as e-tendering, e-supplier selection, e-procurement records management, e-supplier relationship management, among others. The benefits as well as the drawbacks from the implementation of the above activities are also identified from the primary information, which is also compared with the literature review. The limitations of e-procurement implementation include increased security threats, high investment cost, laxity in controls, among others.

The second objective was to critically determine the effectiveness of various e-business activities in enhancing the procurement function. The objective has been achieved through the study assessing how each of the e-procurement activities results in improved procurement performance. Procurement performance is enhanced through a shorter procurement time cycle, enhanced vendor performance, cost savings, enhanced accountability and transparency and decreased procurement risks. In addition, the negative consequences that adversely affect procurement performance with the implementation of various e-procurement activities have been identified and discussed. The negative consequences include compromised security and failure of proper integration with existing systems.

The third objective of the study was to critically evaluate ways in which e-procurement improves procurement performance. E-procurement in general has been attributed to enhanced procurement performance in respect to the major KPIs which includes cost savings, shorter procurement time cycle, enhanced vendor performance, reduced procurement risk, and enhanced supplier relationship management. Thus, the objective has been achieved though identifying how the above KPIs are realised through the functions and attributes of e-procurement which includes decision support, better quality and accurate data, faster retrieval of information, transparent supplier selection process, and availability of budget information.

The final objective was to identify the capabilities necessary to have an effective e-procurement platform. In reality, the adaptation of e-procurement does not automatically translate in enhanced procurement performance. The cause of the variations has been attributed to the actual features of the e-procurement systems. Thus, it was necessary to identify the attributes of the system that results in enhanced procurement performance. The objective has been achieved though identifying the factors which include enhanced security features, compatibility with ERP systems to ensure a proper integration, and an easy to use and navigate interface. Through the analysis within the dissertation, the study meets all the research objectives. The information gathered from the research process in all the four objectives is useful for procurement managers in the actual implementation of e-procurement.

Chapter 6: Conclusion and recommendations.

The study explores the role of e-procurement in enhancing the procurement performance within various organisations. The study entails a qualitative research approach that is aimed at investigating the effect of e-procurement, considerations for its adoptions as well as the hindrances to its adaptation. To achieve this, key procurement officials working in various organisations were interviewed. Furthermore, more information was gathered from secondary sources such as journals and publications. The findings from the primary data as well as secondary data revealed that e-procurement is beneficial to organisations through enhancing efficiency, cutting operational costs, enhancing accountability and transparency, reducing the time taken in the procurement process, among others. Also, crucial features necessary for an effective e-procurement system were identified such as the capacity to integrate with existing systems, advanced security features among others. Also, the hindrances to e-procurement implementation have been identified which include change resistance, high costs and the failure to integrate. Overall, the study establishes that there is a significant boost in procurement performance that comes with e-procurement adaptation.

Recommendations

The recommendations of the study are drawn from the analysis of the research findings and are meant to help the procurement stakeholders to understand important elements regarding e-procurement. Organisations should adopt e-procurement due to a myriad of benefits it has. The realisable benefits include cost savings, enhanced efficiency, increased accountability and transparency of procurement, among others (Schapper et al., 2017). Despite there being many shortcomings of e-procurement implementation such as increased system security threats, there are remarkably more substantial benefits that are attainable.

To overcome the threats of increased system security, the organisation must invest in system security to secure its entire system infrastructure. The implementation of e-procurement in a way creates a vulnerability to the organisation’s ERP systems when they are integrated with a new system that has not been used before (Schapper et al., 2017). There is always a risk that the new system may bring some vulnerability especially since the e-procurement portals are accessible to the public. Thus, it is only prudent that an organisation raises the level of its vigilance in protecting its data by investing in system security. The breach of company information may be quite detrimental to a company and thus there is a need to raise the level of risk management to prevent such losses.

Organisational leaders should expect to face some resistance from other stakeholders such as the employees and management in the process of implementation of e-procurement. Individuals are naturally predisposed to resist changes when they do not understand it or are afraid of its consequences. As such the leadership must institute the changes in a manner that it gradually gains acceptance from the stakeholders throughout the implementation process. The Kurt Lewin Change Model is an example of how leaders may make changes effectively and minimise resistance forces. The Kurt Lewin model entails three stages of change which includes unfreezing, change and refreezing (Liu et al., 2016). Unfreezing entails eliminating the cultural barriers that cause individuals to fear change through activities such as educating the stakeholders on the significance of the change, and how it will positively impact their jobs. The second phase is the change process where the actual implementation takes place. Finally, the refreezing stage entails making the new change to become accepted as the new status quo (Liu et al., 2016). The new system must should then be made part of the organisational culture through continuous training, coaching and the actual application of the business in day to day operations. The use of change management approaches such as the Kurt Lewin model is recommendable for leaders in effectively implementing e-procurement despite the likelihood of facing resistance.

The organisation must also be involved in the design of the program to ensure that the need requirements are met. A platform that is complicated to use may discourage stakeholders such as suppliers to get involved in procurement (Belisari et al., 2019). As such, organisations should contract system designers with a proven track record to ensure they obtain a high-quality system with easy to use interface. The involvement of internal stakeholders in the design ensures that their inputs and requirements are incorporated into the design. Also, such involvement in the design helps to bring a sense of ownership of the system amongst the internal stakeholders.

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Appendix 1: Interview questions

1. Which organisation do you work for?
2. Briefly describe the organisation.
3. Describe your position and role in the organisation.
4. How long have you worked in the procurement department of your organisation?
5. Has your organisation implemented e-procurement? If so, for how long?
6. Do you think e-procurement implementation has any impact on procurement performance?
7. Describe the aspects of e-procurement applied by organisations today.
8. What specific features result in better integration of the e-procurement system?
9. What are the major benefits to an organisation in implementation of e-procurement?
10. What are the limitations of implementing e-procurement?
11. What are the key risks associated with implementation of e-procurement?
12. What challenges might be encountered in e-procurement implementation?
13. Would you recommend to organisations to implement e-procurement?