Date of Award

5-12-2024

Degree Type

Dissertation

Degree Name

Doctor of Professional Studies

Department

Information Management

Advisor(s)

John Jordan

Keywords

eProcurement Technology;Indirect Procurement;Procurement Disruptions;Supply Chain Risk;TOE Framework

Abstract

Procurement is an essential part of supply chain management. Organizations of all sizes and in all industries depend on procurement to ensure that they buy the right product from the right supplier at the right price and time for the continuity of business operations. Since purchasing products at the right price is a critical part of the profitability of an organization, procurement has a direct impact on an organization’s bottom line. Mature, forward-thinking organizations consider eProcurement technology to be a competitive advantage to have an eProcurement technology that generates cost savings and increases productivity and the efficient use of resources. Procurement can be segmented into two categories, direct and indirect procurement. Direct procurement can broadly be defined as revenue-generating expenditures, or expenditures associated with cost of goods sold. Indirect procurement, in contrast, is non-revenue-generating expenses, or expenditures used to maintain day-to-day operations. Supply chain risk management is a critical strategy that organizations need to focus on since supply chain risk is defined as an adverse event that affects supply chain operations and hence the organization’s performance. Risk is considered theoretical until a risk trigger transforms the theoretical risk into a disruption or realized risk. Since indirect procurement is a subsection of an end-to-end supply chain, it is not immune to being susceptible to risk and disruptions. Disruptions can range across topics such as supply risk, operational risk, organization risk, financial risk, and competitive risk. This study is grounded in the technology-organization-environment framework with research questions that explore the disruptions organizations have experienced, type of technology adopted in response, and factors influencing technology adoption. The research leverages embedded mixed methods (qualitative and quantitative) and multi-case study approach, including in-depth interviews with 36 organizations. Data uncovers the disruptions organizations had experienced and whether there was an associated change in technology adoption in response. Interviews with procurement transformation consultants illustrate industry observations and corroborate the organization interviews. Findings highlight that organization, supplier, data, and operational disruptions are the most prevalent type of disruptions. When organizations adopted technology in response to the disruption there was an emphasis on adopting both niche technology and end-to-end eProcurement technology to develop a procurement-centric approach. Supplemental findings also suggest procurement departments are facing major challenges, such as internal perception of procurement, finding skilled personnel, doing more with fewer resources, and creating compelling business cases for new technology. At a time when the relevance of procurement departments is continuously growing, this research will bring attention to indirect procurement as well as eProcurement technology. This research also expands group literature by contributing findings on the factors impacting technology adoption in indirect procurement. In addition, the results advance our understanding of the major issues procurement departments are facing with practical application of technology-organization-environment framework.

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Open Access

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