Adoption of e-procurement in Hong Kong: An empirical research

For the past 5 years, a large number of procurement articles have appeared in the literature. E-procurement solutions make purchasing activities more effective in terms of both time and cost. E-procurement is changing the way businesses purchase goods. Since most products and services are procured using electronic data interchange and the Internet, the application of e-procurement is inevitable in both manufacturing and services. There are limited empirical studies in the literature on the adoption of e-procurement in a country, that is, at the macro-level. Nevertheless, such a study will help companies in other countries to develop policies, strategies, and procedures to implement e-procurement. Understanding the importance of such a study, we have conducted a questionnaire-based survey about the adoption of e-procurement in Hong Kong. The main objective of this study is to identify the perceived critical success factors and perceived barriers regarding the implementation of e-procurement. A conceptual framework has been developed for the adoption of e-procurement, and this subsequently has been tested with data collected from companies in Hong Kong. Also, this study examines the current status of e-procurement adoption in Hong Kong. Finally, a framework is proposed based on the conceptual and empirical analysis for the adoption of e-procurement. The results indicate that educating companies in both long- and short-term benefits would encourage the application of e-procurement. Some critical success factors include adequate financial support, availability of interoperability and standards with traditional communication systems, top management support and commitment, understanding the priorities of the company, and having suitable security systems. (c) 2007 Elsevier B.V. All rights reserved.