The Impact of E-Procurement Systems in the Biomedical Industry
Abstract
The evolution of the Internet has revolutionised the sourcing and procurement processes in organisations in every industry. The focus of this paper is to analyse the perception of business users on the factors which impact the usage of eprocurement systems in the biomedical industry. There are four factors identified in this research: i.e. control and compliance, cost savings, process automation, and improvements and transparency. The benefit of achieving process automation is the first biggest factor, followed by the need for control and compliance, and transparency, being the second and third factors respectively. The fourth factor, cost savings, is ignored because the users perceived that cost savings will not be realised in the short term, and the returns from the investment could be a couple of years after the eprocurement system has been fully operational. The research also concludes that the ability to perform business analytics and to strengthen the supply chain are the most important factors in measuring the success in the adoption of e-procurement systems
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References
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Mahalik, D. K. (2012). Measuring the effectiveness of e-procurement: A case discussion on MCL. The IUP Journal of Supply Chain Management, 9(2), 19-30.
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Wetzels, M., Odekerken-Schröder, G., & van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177-195.
Wong, K. K. (2011, January). Book review: Handbook of partial least squares: Concepts, methods and applications. In V. Esposito Vinzi, W.W. Chin, J. Henseler & H. Hwang (Eds.). International Journal of Business Science & Applied Management, 6(2), 52-54.
Yen, B. P., & Ng, E. (2003). The impact of electronic commerce on procurement. Journal of Organisational Computing & Electronic Commerce, 13(3-4), 167-189.
Agi, M., Ballot, E., & Molet, H. (2005). 100% EDI-connected suppliers projects: An empirical investigation of success factors. Journal of Purchasing & Supply Management, 11(1), 107-115.
Aisbett, J., Lasch, R., & Pires, G. (2005). A decision-making framework for adoption of e-procurement. International Journal of Integrated Supply Management, 1(3), 278-293.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.
Bedell, D. (2002). Solving the headaches of eprocurement. Corporate Finance, 210, 24-27.
Carabello, L. (2001). E-procurement can reduce expenses (digital perspectives). Healthcare Financial Management, 55(12), 82-84.
Carter, P. L., Carter, J. R., Monczka, R. M., Slaight, T. H., & Swan, A. J. (2000). The future of purchasing and supply: A ten-year forecast. Journal of Supply Chain Management, 36(1), 14-26.
Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and voice mail emotion/adoption study. Information Systems Research, 14(2), 189-217.
Cowles, M., & Davis, C. (1982). On the origins of the .05 level of statistical significance. American Psychologist, 37(5), 553-558.
Craighead, C. W., Patterson, J. W., Roth, P. L., & Segars, A. H. (2006). Enabling the benefits of supply chain management systems: An empirical study of electronic data interchange (EDI) in manufacturing. International Journal of Production Research, 14(1), 135-157.
DelGaudio, J. (2004). Cygnus interactive, a division of cygnus business media, cross-border trade: Keeping on top of customs regulations. Printed three pages from the internet.
Dillion, W. R., & Goldstein, M. (1984). Multivariate analysis: Methods and applications. New York: Wiley.
Doug, T., & Singh, M. (2001). An e-procurement model for B2B exchanges and the role of e-markets. 6th Annual Collector Conference on Electronic Commerce. Coffs Harbour, Pacific Bay Resort.
Fornell, C., & Larcker, D. (1981). Evaluating structural equitation models with unobservable variables and measurement errors. Journal of Marketing Research, 18(1), 39-50.
Gefen, D., & Straub, D. (2005, January). A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example. Communications of the Association for Information Systems, 16(1), 91-109.
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference 11.0 update (4th ed.). Boston: Allyn & Bacon.
Glaser, B. G., & Strauss, A. L. (1967). The discovery of grounded theory: Strategies for qualitative research. Chicago: Transaction Publishers.
Haenlein, M., & Kaplan, A. M. (2004). A beginner’s guide to partial least squares analysis. Understanding Statistics, 3(4), 283-297.
Hair, J.F., Sarstedt, M., Ringle, C.M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.
Hennig-Thurau, T., Henning, V., & Sattler, H. (2007). Consumer file sharing of motion pictures. Journal of Marketing, 71(4), 1-18.
Henseler, J., & Sarstedt, M. (2013). Goodness-of-fit indices for partial least squares path modeling. Computational Statistics, 28(2), 565-580.
Hesterberg, T., Moore, D. S., Monaghan, S., Clipson, A., & Epstein, R. (2003). Bootstrap methods and permutation tests. Chapter 14 in Moore, D. S. & McCabe, G. P. Introduction to the practice of statistics, (5th ed.). [Online]. Retrieved April 19, 2014 from http://bcs.whfreeman.com/pbs/cat_160/PBS18.pdf
Hsiao, R., & Teo, T. S. H. (2005). Delivering on the promise of e-procurement. MISQ Executive, 4(3), 343-360.
IE Singapore launches biomedical R & D consortium. (2011). [Online]. Government of Singapore, IE Singapore website. Retrieved April 19, 2014, from http://www.news.gov.sg/public/sgpc/en/media_releases/agencies/ie%20singapore/press_release/P-20110623-1/AttachmentPar/0/file/MR02011Biomed%20Consortium_2011%2006%2023.pdf
Kilpatrick, J. (2001). The supply chain e-business top 100 buy: Moving from indirect to direct procurement. SupplyChainBrain.com website. Retrieved April 19, 2014, from www.supplychainbrain.com/archives/6.01Buy100.htm?adcode=15.
Kline, P. (2000). The handbook of psychological testing. (2nd ed.) London: Routledge.
Kulp, S. L., Randall, T., Brandyberry, G., & Potts, K. (2006). Using organizational control mechanisms to enhance procurement efficiency: How GlaxoSmithKline improved the effectiveness of e-procurement. Interfaces, 36(3), 209-219.
Leonard, L. N. K., & Davis, C. C. (2006). Supply chain replenishment: Before-and-after EDI implementation. Supply Chain Management, 11(3), 225-232.
Mahalik, D. K. (2012). Measuring the effectiveness of e-procurement: A case discussion on MCL. The IUP Journal of Supply Chain Management, 9(2), 19-30.
Manski, C. F. (1996). An introduction to the bootstrap. Journal of Economic Literature, 34(3), 1340-1342.
Mooney, C. Z., & Duval, R. D. (1993). Bootstrapping: A nonparametric approach to statistical inference. Newbury Park, CA: Sage University Paper series on Quantitative Applications in the Social Sciences.
Moore, J. (2007). E-procurement pays its own way: Strategic sourcing and eProcurement transform purchasing in DeKalb county, GA. [Online]. FCW.COM website. Retrieved April 19, 2014, from http://fcw.com/articles/2007/04/02/eprocurement-pays-its-ownway.aspx
Neyman, J., & Pearson, E. S. (1933, October). The testing of statistical hypotheses in relation to probabilities a priori. Mathematical Proceedings of the Cambridge Philosophical Society, 29(4), 492-510.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Ong, S. H., & Mei, Q. (2012). Purchasing consortium for the BMS industry in Singapore. Unpublished internal document, National University of Singapore.
Panda, P., & Sahu, G. P. (2011, June). E-procurement implementation: Comparative study of governments of Andhra Pradesh and Chhattisgarh. The IUP Journal of Supply Chain Management, 8(2), 34-67.
Pupik, J. O. (2014). Explanation: Electronic data interchange standards. [Online]. Retrieved April 22, 2014, from http://www.sis.pitt.edu/~mbsclass/standards/pupik/edidef.html
Rajkumar, T. M. (2001). E-procurement: Business and technical issues. Information Systems Management, 18(4), 52-60.
Rasheed, H. S. (2004). Capital access barriers to public procurement: Creating value added in the supply chain. Industrial Marketing Management, 32(3), 219-226.
Ringle, C. M., Wende, S., & Will, A. (2005). SmartPLS 2.0 (M3) beta. [Online]. University of Hamburg. Retrieved April 22, 2014, from www.smartpls.de.
Rosenbaum, D. (2012). Reining in the spend. CFO, 28(7), 24-25.
Roth, R. T. (2001). Eprocurement: Cutting costs, adding value. Financial Executive, 17(7), 62-63.
Scenario planning in life sciences R & D. (2009). [Online]. Deloitte’s website. Retrieved April 19, 2014, from http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_lshc_ScenarioPlanning_100909.pdf
Scheel, O., O’Keefe, J., & Wintermantel, T. (2013). Unleashing pharma from the R&D value chain. A. T. Kearney, Inc. Retrieved April 19, 2014, from http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/unleashing-pharma-from-the-r-d-value-chain/10192
Straub, D., Boudreau, M. C., & Gefen, D. (2004). Validation guidelines for IS positivist research. Communications of the Association for Information Systems, 14, 380-426.
Tai, Y. M., Ho, C. F., & Wu, W. H. (2010). The performance impact of implementing web-based e-procurement systems. International Journal of Production Research, 48(18), 5397-5414.
Waltner, C. (1997). EDI travels the web - EDI over the web offers companies cheaper e-commerce and messaging via browsers. Internetweek, 668.
Waugh, R. (2011). Removing the obstacles to e-procurement adoption. Government Procurement, 19(4), 18-21.
Weitzel, T., Buxmann, P., & Von Westarp, F. (2000, January). A communication architecture for the digital economy 21st century EDI (pp. 10). Proceedings of the 33rd Annual Hawaii International Conference on System Sciences. IEEE.
Wening, A., & Brockmann, P. (2001). Electronic procurement: Concepts, instruments and benefits. Nurnberg, Germany: Georg-Simon-Ohm Fachhochschule.
Wetzels, M., Odekerken-Schröder, G., & van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177-195.
Wong, K. K. (2011, January). Book review: Handbook of partial least squares: Concepts, methods and applications. In V. Esposito Vinzi, W.W. Chin, J. Henseler & H. Hwang (Eds.). International Journal of Business Science & Applied Management, 6(2), 52-54.
Yen, B. P., & Ng, E. (2003). The impact of electronic commerce on procurement. Journal of Organisational Computing & Electronic Commerce, 13(3-4), 167-189.
Published
2020-05-01
How to Cite
SEETHARAMAN, A. et al.
The Impact of E-Procurement Systems in the Biomedical Industry.
Journal of Accounting, Business and Management (JABM), [S.l.], v. 27, n. 1, p. 66-85, may 2020.
ISSN 2622-2167.
Available at: <https://journal.stie-mce.ac.id/index.php/jabminternational/article/view/564>. Date accessed: 19 apr. 2024.
doi: https://doi.org/10.31966/jabminternational.v27i1.564.
Section
Articles
