E-Procurement and Performance of Manufacturing Firms in Buenos Aires, Argentina

Abstract

Procurement functions have become a strategic unit for many organizations because huge costs can be cut down through prudent procurement hence increase in profitability. The study assessed the impact of e-procurement practices on performance in large manufacturing firms in Buenos Aires, Argentina. The procurement practices included e-bidding, e-tendering, e-purchasing and e-sourcing. This study was based on contingency theory and technology acceptance theory. The target population for the study was large sized manufacturing firms in Buenos Aires, Argentina where the unit of analyses were procurement managers and procurement supervisors. SPSS software for analysis. Regression analysis results indicated that E-bidding, E-tendering. E-purchasing and performance, the regression analysis revealed a positive and significant relationship. E-sourcing was positively and significantly related with performance of large manufacturing firms in Buenos Aires, Argentina. The study concluded that the firms adopt various E-procurement practices which includes; E-bidding, E-tendering, E-purchasing and E-sourcing as a way of improving their financial performance. The study recommends that the large manufacturing should adopt E-procurement practices owing to their immense benefits to the performance of the firm which include; improved financial performance, reduced inbound lead time and efficiency and increased procurement volumes processed. The study further recommends that large manufacturing firms contemplating adopting E-procurement practices should integrate their systems since lack of system integration is a major challenge to E-procurement. Keywords: E-Procurement, Manufacturing Firms, Buenos Aires, Argentina