The development of e-procurement within the ICT manufacturing industry in Ireland

Abstract

Purpose – The purpose of this paper is to show that e-procurement provides manufacturing firms with new and efficient solutions to drive significant value into their business, yet generally the use of internet technologies to accommodate e-procurement systems remains in a formative stage. Previous research tends to focus on larger economies, so this paper provides a new perspective by presenting evidence from the Irish ICT manufacturing industry. Design/methodology/approach – The research locale is justified on the basis that the ICT manufacturing sector has a greater propensity to adopt technologies such as e-procurement. In addition, by conducting the research in a small peripheral economy, a gap in the knowledge base is being addressed. The exploratory research adopted a quantitative methodology with a questionnaire instrument being employed to investigate various e-procurement activities within a sample of top performing ICT manufacturing firms. Findings – Findings show that e-procurement is developing as a function. Significant benefits are reported, including streamlined business processes and reduced business costs. Difficulties associated with implementation are minimal, but focus on integration issues. Research limitations/implications – Limitations of small sample size negate the ability to generalise. Thus a larger scale comparative study has been initiated to investigate e-procurement more extensively in the ICT and other industry settings in Ireland. Practical implications – It is concluded that to further the integration of e-procurement, organisations should develop a dual focus on technical and people issues to instil a culture of staff development and continuous improvement. Originality/value – This paper addresses a gap in knowledge by investigating e-procurement in the top performing firms in Ireland's ICT manufacturing sector. A picture is provided of e-procurement development in a peripheral economy and the foundation has been laid for more extensive research in the future