Effect of supply chain technology internalization and e-procurement on supply chain performance

Abstract

PurposeThe purpose of this paper is to examine how e-procurement (EP) and supply chain technology internalization (SCTI) influence supply chain performance (SCP) through supply chain integration (SCI).Design/methodology/approachThis research analyzed 214 survey responses from project managers who have prior experience in the field of supply chain management. Structural equation modeling was used to analyze the data.FindingsThe results show that EP and SCTI positively influence SCI and SCP. The effects of EP and SCTI on SCP are found to be mediated by SCI in the context for the construction industry.Research limitations/implicationsFuture studies should focus on quantitative measures of SCP like budget overrun, supply chain efficiency and project success. Further research can be done through the exploration of moderating interactions of the proposed model.Practical implicationsFirst, the study highlights the importance of SCTI. Supply chain managers should first focus on effective utilization of different technologies used to support supply chain. Second, the research gives the guidelines to the supply chain managers and project managers about the benefits of EP. They should focus on proper implementation of EP in their organizations.Originality/valueThis paper contributes to the literature by proposing and testing the influences of EP and SCTI on SCI. This allows a strategic viewpoint when implementing SCTI, EP systems and SCI, intended to improve SCP.