The Effect of e-Procurement Technology on Performance of Apparel Industry in Sri Lanka: The Mediating Role of Procurement Practices

Abstract

The apparel industry in Sri Lanka is one of the vital sectors in the country’s economyhaving recorded substantial development over the past. The entire procurementprocess of the industry, from the purchase of raw materials through to the delivery ofthe finished product, is crucial to supply chain management and decision-making.Use of electronic procurement technology (EPT), procurement practices, andprocurement performance are the three key factors that affect this process. Thisresearch aims to explore the relationship among EPT usage, procurement practicesand procurement performance of the apparel sector in Sri Lanka. More specificallythe study investigates the mediating effect of procurement practices on therelationship between EPT and procurement performance. Data were collectedthrough a structured online questionnaire from randomly selected 40 supply chainand procurement management staff of three leading apparel companies in Sri Lanka.Collected data were analyzed by using SPSS statistical software with descriptive andinferential statics. The results of the analysis provide evidence for statisticallysignificant positive effects of EPT and procurement practices on procurementperformance. Moreover, the study found a statistically significant mediation effect ofprocurement practices on the relationship between the usage of EPT and procurementperformance. Thus, this study contributes to the literature by providing new insightinto the importance of investments in new technology for effective procurementprocesses.Keywords: e-Procurement, Performance, Apparel industry, Sri Lanka