An in-depth analysis of e-procurement use in UK construction organisations

Eadie et al (2007) show that there are many advantages in the adoption of e-procurement within a construction organisation. However, its uptake within the construction industry has been inadequately researched. Martin (2003, 2008) investigated e-procurement use across quantity surveying organisations in United Kingdom. However, the picture is not complete as other disciplines within construction are not considered. This paper seeks to address this issue. Martin (2003, 2008) does not seek to identify the sizes or spend on procurement activities by those quantity surveying organisations who have adopted the use of e-procurement. This paper investigates the correlations between size, procurement spend and adoption of e-procurement. A survey was conducted in two parts: the initial survey looked at 70 contractors in Northern Ireland which had carried out e-procurement. This was followed by the main survey, which contained a telephone survey followed by a web-based survey. The telephone survey of 775 organisations identified the amount of e-procurement in construction within the United Kingdom. This was followed by a web-based questionnaire survey of the identified organisations on e-procurement for construction based activities. These produced a breakdown of e-procurement use and spend on completion of pricing documentation across the construction industry

Electronic government procurement adoption behavior amongst Malaysian SMEs

The aim of this study is to investigate the relationship between a model of electronic procurement (e-procurement) adoption behavior and the level of Government e-procurement adoption amongst Small Medium Enterprise (SME) in Malaysia. Data was collected through questionnaires that were distributed to SME selected randomly in all SME in Malaysia.The data were analyzed using factor analysis, reliability analysis, independent-sample t-test, descriptive statistics, Pearson Correlation and multiple regressions. Regression results reveals that ‘power’, ‘trust’ and ‘value’ have a positive relationship with the level of e-procurement adoption amongst SME in Malaysia.All dimensions, namely; the power of supplier, power of procurement, trust on supplier, trust on information technology, value of implementation system efficiency and value of cost efficiency were also correlated with the level of e-procurement adoption amongst SME. Past studies on e-procurement are beset by problems of buyer-seller relationship perspective.In addition, these studies are skewed towards Government-SME relationship perspective which the Government possesses more power than SME and provide a better incentive to educate and influence SME to adopt e-procurement.In investigation the relationship between a model of e-procurement adoption behavior and the level of Government e-procurement adoption amongst SME in Malaysia, this study also tries to provides recommendation to Malaysian government for improving the level of e-procurement adoption amongst SME

Analysis of the use of e-procurement in the public and private sectors of the UK construction industry

Summary: Eadie et.al (2010a, 2010b) identified 20 advantages in the adoption of e-procurement within a construction organisation. The Glover report (2008) indicated that by the end of 2010 all public sector procurement should be electronic. The use of e-procurement within the construction industry has been inadequately researched. Martin (2009) examined quantity surveying organisations perspectives on the use of e procurement across the United Kingdom. This paper seeks to address the knowledge gap that exists in the analysis of the level of usage of e-procurement within the construction industry. It compares the findings for the construction industry with other industries on company size and spend. Martin (2009) does not seek to investigate the size or spend on procurement activities of those quantity surveying organisations who have adopted e-procurement. This paper investigates the correlations between size, procurement spend and adoption of e-procurement in construction organisations comparing it with other industries. It concludes that the findings of Griloa and Jardim-Goncalves (2010) and European Commission (2007) were correct in suggesting that the AEC sector has been lagging behind other sectors in the adoption of e-procurement and provides a breakdown of the different types of organisations who currently use e-procurement. It further identifies the size of organisations which have implemented e-procurement within construction. On the client and consultant side in traditional contracts, company sizes of 21-50 employees make the highest use of eprocurement. This confirms that when analysing according to the size of organisation, construction organisations perform in a similar way to other industries as reported in Batenburg (2007) and Gunasekarana and Ngai (2008). However, this study indicates that very small companies may still be put off by the costs of software (corroborates De Boer et al, 2002; Kauffman and Mohtadi, 2004). The study proposes the types of construction organisation most likely to be utilising the benefits of eprocurement in construction by procurement spend and size. It also indicates that the deadlines in the Glover report (2008) relating to e-procurement in construction are unlikely to be met

Exploring anti-corruption capabilities of e-procurement in construction project delivery in Nigeria

The use of electronic (e-­) procurement to support the execution of supply chain management activities in the different industrial sectors is permeating all regions of the world. However, in countries in sub-Saharan Africa where there is a significant level of corruption and unethical practices in the procurement process, there is a need for a better understanding of how e-Procurement can help to check the incidence of corrupt and unethical practices in construction project delivery. This study relied on a cross-sectional survey of 759 respondents, including architects, builders, engineers, estate/facilities managers, contractors, construction/project managers, quantity surveyors, supply chain managers and others to identify and analyse the anti-corruption capabilities of e-Procurement in construction project delivery in Nigeria. The results of the descriptive statistics, relative importance index and principal components analysis identified 18 anti-corruption capabilities in e-Procurement in construction project delivery with the three most important ones being the capability of e-Procurement to ensure good inventory management/record keeping; accountability by providing audit services trail and minimise direct human contacts during bidding. The key underlying dimensions of these capabilities include the advantage of e-Procurement over the traditional paper-based method; transparent bidding process and increase in competition in construction project delivery process. The findings of this study have implications, especially, on the use of e-Procurement to curb corruption in construction procurement activities

THE ROLE OF THE E-PROCUREMENT IN THE PURCHASING PROCESS

This article aims to examine the role of the E-procurement forms in the six phases of the purchasing process. The paper starts with an introductory part about the purchasing process. Next, based on a literature review we selected and defined the most important forms of E-procurement. Furthermore, we develop a theoretical framework that suggests what form of E-procurement is best to use in every phase of the purchasing process. At the end of the paper we draw conclusions and we set some ground rules for managers regarding to the implementation of an E-procurement form.purchasing, E-procurement; management, supply chain management, optimization

Identification of key process areas in the production on an e-capability maturity model for UK construction organisations

Uptake of e-procurement by construction organisations has been slow (Martin, 2008). Positive e-business achievements in other industries, point towards the potential for the construction industry to accomplish similar results. Since the Modernising Government White paper set targets through best value indicator BV157 for implementation in the public sector, Government has supported many initiatives encouraging e-procurement. These are based on documented efficiency and cost savings (Knudsen, 2003; Minahan and Degan, 2001; McIntosh and Sloan, 2001; Martin, 2008). However, Martin (2003, 2008) demonstrates only a modest increase in the uptake of e-procurement in the UK construction industry. Alshawi et al (2004) identified the significance of possessing a model to sustain the embedment of any business process within an organisation. Saleh and Alshawi (2005) describe a number of model types used to gauge maturity in an organisation. One of these models is the capability maturity model. Paulk et al (1993) released the Software Capability Maturity Model (CMM) in 1991. Since then many CMM’s have evolved. This paper reports on how a CMM based on Drivers and Barriers to e-procurement identified in Eadie et al (2009) can be developed to gauge the maturity of an organisation in relation to e-procurement. This paper presents details of a research project which used factor analysis to produce a set of Key Process Areas (KPA) from the drivers and barriers identified in Eadie et al (2009). These KPAs were then subjected to a mapping process linking them to maturity levels to develop a CMM to analyse the e-procurement capability of construction organisations. The mapping will be reported in a later paper. This termed as e-readiness of organisations will indicate the current state of a construction organisation in terms of its readiness to carry out e-procurement. The paper describes in detail the identification of the KPA’s

Analysing B2B electronic procurement benefits – Information systems perspective

This paper presents electronic procurement benefits identified in four case companies. The benefits achieved in the case companies were classified according to taxonomies from the Information Systems discipline. Existing taxonomies were combined into a new taxonomy which allows evaluation of the complex e-procurement impact. Traditional financial-based methods failed to capture the nature of e-procurement benefits. In the new taxonomy, eprocurement benefits are classified using scorecard dimensions (strategic, tactical and operational), which allows the identification of areas of e-procurement impact, in addition the benefits characteristic is captured (tangible, intangible, financial and non-financial)

Performance modeling of e-procurement workflow using Generalised Stochastic Petri net (GSPN)

This paper proposes a Generalised Stochastic Petri net (GSPN) model representing a generic e-procurement workflow process. The model displays the dynamic behaviour of the system and shows the inter relationship of process activities. An analysis based on matrix equation approach enabled users to analyse the critical system's states, and thus justify the process performance. The results obtained allow users for better decision making in improving e-procurement workflow performance

Electronic Reverse Auctions: Spawning Procurement Innovation in the Context of Arab Culture

Government e-procurement initiatives have the potential to transform local institutions, but few studies have been published of strategies for implementing specific e-procurement tools, particularly involving procurement by a foreign government adapting to local culture in the Middle East/North Africa (MENA). This case describes procurement at a forward operating base (FOB) in Kuwait in support of operations in Iraq. The government procurers had to deal with a phenomenon unique to the MENA region: wasta. Wasta is a form of social capital that bestows power, influence, and connection to those who possess it, similar to guanxi in China. This study explores the value proposition and limitations of electronic reverse auctions (eRA) with the purpose of sharing best practices and lessons learned for government procurement in a MENA country. The public value framework provides valuable theoretical insights for the implementation of a new government e-procurement tool in a foreign country. In a culture dominated by wasta, the suppliers enjoyed the transparency and merit-based virtues of eRA’s that transferred successfully into the new cultural milieu: potential to increase transparency, competition, efficiency, and taxpayer savings. The practices provided herein are designed specifically to help buyers overcome structural barriers including training, organizational inertia, and a lack of eRA policy and guidance while implementing a new e-procurement tool in a foreign country

Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia

This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procurement within both countries. We find no evidence of reduced prices but do find that e-procurement leads to quality improvements. In India, where we observe quality directly, e-procurement improves road quality, and in Indonesia, e-procurement reduces delays. Regions with e-procurement are more likely to have winners come from outside the region. On net, the results suggest that e-procurement facilitates entry from higher quality contractors.International Growth Centr