E-Procurement Practices and Performance of Manufacturing Firms in Bogota, Colombia
Abstract
Advances in technology are changing how 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 an 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 analysis 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 the performance of large manufacturing firms in Bogota, Colombia. The study concluded that the firms adopt various E-procurement practices which include; E-bidding, E-tendering, E-purchasing and E-sourcing as a way of improving their financial performance. The study recommends that large manufacturing should adopt E-procurement practices owing to their immense benefits to the performance of the firm which includes; 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 a lack of system integration is a major challenge to E-procurement.
Keywords: E-Procurement, Manufacturing Firms, Bogota, Colombia
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