Exploring e-Procurement Value for Construction Companies in Malaysia

Abstract

E-Procurement is gaining popularity in business practice and a variety of benefits have encouraged its adoption, such as increasing competitiveness and reducing costs. Previous research claim that e-Procurement could bring significant value to firms, but we know very little empirically about the actual outcomes of its implementation in the construction industry. This paper addresses this gap in knowledge through a survey of 120 construction firms in Malaysia, all of which have moved beyond the basic stages of e-Procurement. The finding indicates that the value of e-Procurement's value is generally limited to improvements in operational and tactical areas. Improvements in market access and customer/supplier relationships were not noted by a majority. These empirical findings provide useful guidelines for construction firms that wish to embark upon and e-Procurement adoption journey. Furthermore, the measures produced here may be used as a benchmarking exercise for the firms who have already adopted e-Procurement practices.