Acceptance of E-procurement in Organisations: Using Structural Equation Modeling (SEM)

Abstract

This research is concerned with the development of a realistic model for e-procurement adoption by organizations and groups observing the Rules of Islamic Sharia (RIS). This model is intended to be based on the behavioural control, subjective norms, and the recognition of the benefits and risks of eprocurement adoption. The developed model, “E-Procurement Adoption Model” (E-PAM), combined and extended two existing models previously used for information technology adoption. Central to the design of the E-PAM is the principle that a realistic model should consider all relevant psychological, social, cultural, demography, and religious factors. The mediating components “mediators” that determine the final model are thus determined by the specific aforementioned factors about of on to the development of an e-procurement approach in the context of the Rules of Islamic Sharia. Therefore, in the design of the research model, factors including perceived usefulness, perceived ease of use, organizational facilitators, organisational leadership, critical success factors, challenges, barriers, and benefits were taken into account. These factors in turn gave rise to the two mediating components of ‘Attitude’ and ‘Rules of Islamic Sharia’.Several hypotheses were made in order to establish links between the contributing factors, the mediators, and the adoption of e-procurement as the final dependent variable output of the model. An online questionnaire survey was conducted to validate the hypotheses using a structural equation model. The descriptive analysis of the survey data provided demographic details of the questionnaire participants and their employers and statistical analysis methods were used to correlate the contributing factors and mediators. The analysis of the survey data confirmed the existence of positive relationships between Benefits and the Rules of Islamic Sharia, organizational Facilitators and the Adoption of e-procurement, Organisational Facilitators, and Organisational Leadership, and Rules of Islamic Sharia and the Adoption of e-procurement. It was observed that Perceived Usefulness and Organisational Leadership do not influence the adoption of e-procurement. Furthermore, the analysis suggested that Rules of Islamic Sharia is not influenced by Critical Success Factors. This model successfully validated most of the initial hypotheses made regarding e-procurement adoption. The results of this research strongly encourage organisations observing Rules of Islamic Sharia to adopt e-procurement practices.