Developing Internet Online Procurement Frameworks for Construction Firms

Abstract

Electronic purchasing or e-procurement saves millions of dollars yearly in transaction costs. E-procurement helps to cut down the supplier base, promotes paperless transactions, and increases transparency and accountability in the procurement process. Nonetheless, studies report that around 80% of e-procurement initiatives have met with failure and failed to achieve the desired results. Although studies to better understand the Critical Success Factors (CSFs) of e-procurement implementation involving various industries have been on the rise, little is known about architecture engineering and construction (AEC) practices, which has led to limited development of pragmatic frameworks to uncover the factors. Thus, this study aims to identify those CSFs (predicting variables) which significantly contribute to e-procurement implementation success in the construction sector and to put forward for better implementation. Results from multiple regression analysis revealed five factors to be statistically significant predictors of success. Three factors were determined to be predictors of user satisfaction. Finally, internet online procurement frameworks were developed for the success of e-procurement implementation in the construction sector.

Evolution of Electronic Procurement: Contemporary Review of Adoption and Implementation Strategies

“…Analogous to the driving indicators of EP and the related critical success factors, studies including [89][90][91] also examined the underlying factors that contribute to the successful adoption and implementation of EP. The factors were captured under two primary frameworks: (1) implementation success framework for project management success and (2) user satisfaction.…”

Facilitating Digital Transformation in Construction—A Systematic Review of the Current State of the Art

“…Step 5-Eligibility As mentioned above, the 151 publications were subjected to a more in-depth study and analysis using more rigorous inclusion/ exclusion criteria to select publications that qualified for the final sample as follows: 1) publications were required to primarily focus and contribute to DT in the construction sector, including the project, organizational, and industry levels of construction operation [e.g., Bonanomi et al 's (2019) study on the impact of DT on the organizational structures in large AEC firms]; 2) publications were required to use DT as the theoretical lens of research and may use this theoretical lens: propose hypotheses; identify the research variables; for data collection; for explaining research findings; and to drawing conclusions and recommendations; and 3) publications that are neither 1) nor 2) were excluded; such publications are more practitionercentered offering insights on the implementation of digital technologies to relevant stakeholders [e.g., Deraman et al, 2019;Soman and Whyte, 2020;Zima et al, 2020]. The eligibility process resulted in a final sample of 36 journal publications that met the criteria.…”

“…Also, digital technologies can be very disruptive. The process-centric strategic consideration allows an incremental implementation of digital technologies, which helps control the rate of diffusion of implemented technology before reaching the disruptive stage (Deraman et al, 2019;Morgan, 2019).…”

Web-based material requisition system in the supply chain of construction businesses

“…Cardoso and Biazzin [17] considered the benefits of e-procurement to maintenance, repairs and operations suppliers. In Deraman et al [18] developed an electronic purchasing (e-procurement) framework for construction also indicating that these systems have sometimes failed. According to [18], procurement policy, employee commitment, project milestones, change management, stakeholder involvement and project planning influence the decision to implement an eprocurement framework in the construction industry.…”

“…In Deraman et al [18] developed an electronic purchasing (e-procurement) framework for construction also indicating that these systems have sometimes failed. According to [18], procurement policy, employee commitment, project milestones, change management, stakeholder involvement and project planning influence the decision to implement an eprocurement framework in the construction industry. Amade et al [19] indicated that the most important factors for successful supply chain management was relationship among supply chain partners, supply chain financing and supply chain and continuous performance measurements.…”