E-Procurement Practices and Performance of Manufacturing Firms in Bogota, Colombia

Abstract

Advances in technology are changing the manner in which purchasers and providers acquire goods and services. Procurement functions have therefore 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 Bogota, Colombia. 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 50 large sized manufacturing firms in Bogota Colombia where the unit of analyses were procurement managers and procurement supervisors. SPSS software for analysis. Regression analysis results indicated that E-bidding (?=.124, p=0.002, E-tendering (?=.111, p=0.005) E-purchasing and performance, the regression analysis revealed a positive and significant relationship (?=.089, p=0.023) E-sourcing (?=.125, p=0.004) were positively and significantly related with performance pf large manufacturing firms in Bogota, Colombia. 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, Bogota, Colombia