Role of Organisational Factors on Eprocurement Adoption Decisions by Medium Scale Industries in Tamil Nadu

Abstract

Procurement is a largely data-driven function. It needs real-time visibility and an easy way of maintaining and managing a large volume of procurement data. Hence it is necessary to have a real-time procurement system(e-procurement). So, it is essential for any organization to adopt e-procurement. There are many factors that affect the decisions of adoption of e-procurement. One such factor is organizational factors. This research empirically tests the role of organizational factors on e-procurement adoption decisions. Empirical survey of 432 samples was collected from the production executives of medium scale industries in the Tamil Nadu using structured questionnaire. K-mean cluster analysis was performed to segment the medium scale industries into three groups: High, Moderate and Low influence of organizational factors on adoption decisions by industries. Among the organizational factors considered for this study, top management support plays a vital role in adoption of e-procurement. Results indicate that there is a moderate influence of organizational factors on adoption decisions by medium scale industries.

Keywords: E-procurement, Adoption Decisions, Role of Organisational Factors, Medium Scale Industries

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