A Success Model for the Malaysian Government e-Procurement System

Abstract

In Malaysia, there has been a tremendous effort in implementing e-government as a national agenda to increase public transparency, improve sector efficiency and effectiveness, and reduce public expenditure through lower operational costs. One of the e-government applications is the ePerolehan, a government-to-business (G2B) system that enables online public procurement coordination and transaction between government and businesses. However, there has been a lack of empirical research findings in evaluating the success and actual value of the system and understanding the usage factors among government users. Hence, this research was undertaken to investigate the level of ePerolehan system success and the factors that contribute to this success, as perceived by the government users. The structural equation modeling results suggest the use of the Malaysian public e-procurement system has significant and positive influence to success, measured as transparency, service performance, efficiency, and information quality. The results also indicated that the main significant success factors of the ePerolehan system are found to be system compatibility, user attitude, organizational learning, mimetic pressure, and supplier expectation. The findings provide several important implications not only for the government-to-business discipline, but also for e-government research and practice.