E-Procurement adoption in the Southcoast SMEs

Abstract

E-Commerce is expected to play a major role in the 21st century global market. Of the various E-commerce models (B2B, B2C, B2E and B2G), B2B has been particularly successful, due to adoption of standardized processes for document exchange (like EDI), shipping, tracking, delivery and payment among supply chain partners. One element of B2B is E-procurement. E-procurement focuses on acquisition of resources, especially MRO items, and increasingly materials and components. Some analysts believe that enormous cost savings and increased effectiveness can be achieved through the utilization of E-procurement. E-procurement utilizes electronic purchase procedures implemented through Internet communication and Web based buying tools. Studies in the literature report on the adoption of E-procurement in different countries and industries. This study focuses on the current status of E-procurement in small and medium sized enterprises (SMEs) located in the Southcoast of Massachusetts. The main objective of this research is to understand the current state of E-procurement in SMEs and to examine those things that influence E-procurement adoption. A questionnaire-based survey was employed for data collection. A conceptual model was developed to describe/explain the adoption of E-procurement and a framework is proposed for the successful adoption of E-procurement on the Southcoast of Massachusetts.