A Resource-Based Technological View in the Adoption of an E-Procurement System

Abstract

The large organizations are more interested in adopting new technology because these organizations have more financial resources, human capital, technological competencies, employees, and organizational support. On the other hand, small- and medium-sized enterprises (SMEs) have more challenges with respect to suppliers, organizational contextual factors, technological competencies, and financial resources which negatively influence the adoption rate of e-procurement system. The present study aims to identify these challenges with the purpose to understand the adoption capabilities that can help SMEs to adopt e-procurement systems in the perspective of a developing country. To achieve this aim, the researcher data had gathered from the internal and external stakeholders of five SMEs of textile sector. Findings highlighted that SMEs are facing many challenges such as complexity and formalization, formal and informal linking structures, financial and strategic integration, industry characteristics, and technology infrastructure. The adoption of e-procurement systems can improve the employee abilities, motivation, opportunities, interconnectedness and system openness, inventory system, purchasing process, and organizational capabilities.