Electronic Procurement Systems: An integrative model to explain Procurement Performance

Abstract

Although electronic procurement systems (EPS) may foster superior company-level performance, their complexity and an accompanying need for commitment of a substantive amount of firm?s resources necessitate great care in their development and in the implementation process. Indeed, poorly managed implementation process could result in underachievement of the expected benefits. Our study focuses on fostering an effective EPS implementation processes through a better understanding of the factors that influence implementation success. Based on an extensive review of the extant literature and considering the specific attributes of EPS we develop and propose an integrative model to explain Procurement Performance. We posit that EPS Implementation Success is determined by the EPS Project Management process, the firm?s absorptive capacity, and its IT competence. We further posit that systems integration between the focal firm and its main suppliers moderates the relationship between EPS implementation success and the procurement performance achieved by the firm.