Abstract

This study seeks to identify the factors leading to the assimilation of electronic procurement (e-procurement) in organizations. Realizing the strategic importance of e-procurement, many organizations have increased their investments to exploit its potential benefits. However, organizations differ greatly in their abilities to assimilate the application and translate it into tangible benefits. This study tries to enhance understanding of barriers and facilitators that affect organizations’ abilities to assimilate e-procurement. Drawing upon perspectives from strategic management and other literature, this study develops a conceptual model that identifies the determinants of organizations’ capabilities to implement e-procurement applications. This study empirically validates the conceptual model, conducting a survey with purchasing executives and managers of organizations in service industries. The conceptual framework and empirical investigation of this study are expected to greatly contribute to both theory and practice. For theory, the study promises to enhance understanding of barriers and facilitators of e-procurement assimilation in organizations. For practice, this study will yield useful implications on how to effectively manage e-procurement assimilation efforts. The findings will make the task more manageable and less stressful for practitioners, eventually facilitating the spread of the application across individuals, work groups, organizations, and society at large.

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