Exploring the business case for e-procurement

Abstract

Purpose – Although e-procurement has been adopted in many industries, the business case for this technology has only partially been explored in the literature. This paper aims to investigate, through a case study approach, the extent of the business case developed for e-procurement adoption in three implementations.

Design/methodology/approach – The paper employs a case study method and examines three industrial firms through in-depth interviews with managers involved in the projects. The cases were presented and explored individually, followed by identification of relevant drivers and problem factors.

Findings – The research identifies 18 drivers which can form the basis of a business case for e-procurement. A further 17 problem factors are presented, which have the potential to militate the original case. It is apparent that the firms involved only developed a limited case for adoption and that there is a significant element of faith that the eventual results will justify the investment.

Practical implications – A framework of the business drivers for e-procurement is introduced, in the form of a multi-attribute hierarchy. This framework can assist managers to classify relevant issues in assessing and developing the case for e-procurement adoption.

Originality/value – Whilst the literature offers theoretical benefits for e-procurement, the paper provides managers and researchers with empirical evidence of the drivers for this technology and of the problems encountered in implementation.