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Article history: The aim of this study is to investigate the effects of the barriers and benets of e-procurement systems
Received 25 April 2013 on the e-procurement adoption decision. An empirical analysis is performed for a retail store chain
Accepted 25 June 2014 which operates in book and stationery sector in Turkey. Interpretive Structural Modeling (ISM) technique
Available online 23 July 2014
is applied to the selected barriers and benets to determine their contextual relationships. Inadequate IT
Keywords: infrastructure of suppliers/business partners is found to be the most important barrier in the adoption of
E-procurement e-procurement systems. On the other hand, the most signicant benet is determined as integrated
Barriers information sharing. The barriers and benets, which have high driving power and the capability to
Benets inuence the other drivers, are then integrated into the structural equation model. The results denote
Interpretive structural modeling
that barriers (benets) of e-procurement systems have negative (positive) effect on the e-procurement
Structural equation modeling
adoption decision for the company. In addition, it is found that the effect of benets on the adoption
decision is higher than that of the barriers. Thus, based on this analysis, it would be benecial for the
company to adopt the e-procurement system.
& 2014 Elsevier B.V. All rights reserved.
1. Introduction phone, fax, and other communication channels, showing how the
procurement system is developed over time (Hawking et al.,
Intensifying competition in today's business environment has 2004).
highlighted the need to optimize the management of supply chains. E-procurement, which has become one of the fundamental
Developments in the information and communication technology elements of a supply chain, is still in the process of development
are important tools to manage supply chains effectively. In recent and several studies are performed on this subject. Gunasekaran
years, an increasing trend has been observed in the adoption and Ngai (2008) state that the supply chain of a company cannot
of e-procurement systems, which help in the integration of the be integrated successfully without the adoption of e-procurement
procurement process throughout the supply chain. systems. The authors conduct a questionnaire based survey in
The term e-procurement refers to the integration of procure- order to understand the adoption process of e-procurement in
ment process, which includes operations such as negotiation, Hong Kong. Davila et al. (2003) carry out a research on the
ordering, receipt, and post-purchase review (Croom and equilibrium point for the optimum e-procurement system that
Brandon-Jones, 2007). Morris et al. (2000) dene e-procurement should be used by companies which have different attitudes
as a system that utilizes Internet technologies and services to towards technology. Panayiotou et al. (2004) work on a case study
automate and streamline an organization's processes from about the Greek purchasing process and indicate the problems
requisition to payment. which may occur. The authors also study e-procurement system
E-procurement is not a recently discovered process as there design. Croom and Brandon-Jones (2007) assess the validity of the
have been many attempts of using electronic systems for devel- forecasts performed by earlier studies which made predictions
oping an automated procurement technology for organizations, about the changes and improvements that will be caused by
such as electronic workow systems and EDI (Gunasekaran and e-procurement systems. Gunasekaran et al. (2009) analyze the
Ngai, 2008). When the traditional procurement system is ana- current state of e-procurement in SMEs located in the Southcoast
lyzed, it can be seen that the process is implemented by using of Massachusetts, and they also examine the factors that affect the
e-procurement adoption. Nguyen (2013) performs an empirical
study for the transport and logistics companies in Australia, and
n
Corresponding author. Tel.: 90 216 544 5555; fax: 90 216 544 5535. determines the principal components affecting the e-business
E-mail address: ppalut@dogus.edu.tr (P. Tokta-Palut). adoption decision.
http://dx.doi.org/10.1016/j.ijpe.2014.07.017
0925-5273/& 2014 Elsevier B.V. All rights reserved.
78 P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790
In the light of the previous studies on e-procurement systems, book and stationery sector in Turkey. The company has an annual
this study focuses on the barriers and benets of e-procurement procurement volume of approximately 100 million USD, which
systems. Our aim is to investigate the effects of the barriers and covers its demand for more than 20,000 different stock keeping
benets on the e-procurement adoption decision. For this purpose, units provided by 185 suppliers. Currently, this company uses
rst Interpretive Structural Modeling (ISM) is applied to the traditional procurement methods, but the senior management
barriers and benets of e-procurement in order to understand wants to decide whether to adopt an e-procurement system or
the relations within these criteria. not. As one would expect, there are some barriers to switching to
Talib et al. (2011) dene ISM as an interpretive model, which an electronic procurement system for the company. On the other
denes the relations between variables in complex systems by hand, the company will experience some benets from the
representing them in a hierarchical conguration. ISM is widely e-procurement system when compared with the traditional pro-
used to specify the interactions between the elements of a system, curement methods. The literature reviews on the barriers and
such as barriers and benets. Gorvett and Liu (2006) assess the benets of the e-procurement systems are given in Tables 1 and 2,
risks in a rm by using ISM and analyze the risk prole of the respectively. Based on the literature review, 20 barriers and 20
company. Singh and Kant (2008) use ISM in order to understand benets are determined. Then, these barriers and benets are
the relations between the barriers of knowledge management and discussed with eight top managers of the company and their
specify the driving and dependent barriers. Chandramowli et al. numbers are decreased to 14 barriers and 15 benets. The barriers
(2011) perform a case study about the barriers of developing and benets used in this study and their explanations are
landll sites in order to realize urban planning issues. Luthra et al. given below.
(2011) apply ISM to investigate the relations between the barriers
of green supply chain management for India's automobile 2.1.1. Barriers of e-procurement systems
industry. The literature review shows that this is the rst study that Although it is known that e-procurement systems have several
applies ISM to the barriers and benets of e-procurement systems. benets for the company, the company would also face some
In the second part of the study, the results of the ISM model are barriers while switching to an e-procurement system. The barriers
validated by using Structural Equation Modeling (SEM). Another of e-procurement systems taken into consideration in this study
point of interest is to analyze whether the effects of barriers or are given below:
benets are higher on the e-procurement adoption decision. For
this purpose, we perform an empirical analysis for a retail store 2.1.1.1. Bureaucratic disfunctionalities in practice. There are a number
chain which operates in book and stationery sector in Turkey. To of specic regulations and standards that have been developed for
the best of our knowledge, this is the rst study that integrates e-procurement applications which require that a bureaucratic
ISM and SEM techniques. procedure to be followed due to the nature of the legal institutions
SEM can be used for multivariate data as it is appropriate for involved and embraces audit, accountability and compliance
illustrating the relations between exogenous and endogenous standards with national and international rules to ensure supply
latent variables in one model (Kline, 1998; Aibinu and Al-Lawati, competition and transparency in the awarding of contracts.
2010). SEM is a widely used tool especially for psychology,
sociology, and econometrics (Golob, 2003) and there are several 2.1.1.2. Cost/benet concern. Emerges where the expenses outweigh
studies applying SEM in the literature. Thus, we only mention the the benets of moving to electronic procurement.
studies in a related eld. Madeja and Schoder (2003) examine the
impacts of e-procurement adoption process on e-business success.
2.1.1.3. External (supply chain/business partners) incompatibi-
Ho et al. (2004) investigate the direct and performance impacts of
lity. Suppliers' strategies and willingness are not sufcient to take
e-procurement on supply chain orientation from the buyerseller
on new technologies such as e-procurement. There is a lack of
perspective. Lee and Quaddus (2006) conduct a study in Singapore
readiness by external parties to engage in electronic interactions.
about the impacts of buyersupplier relationship on e-purchasing
adoption decision. Vaidyanathan and Devaraj (2008) study
2.1.1.4. High investment cost of IT infrastructure/software. The company
the impacts of the quality of the information ow process and
cannot afford too high investment cost on a new IT infrastructure and
the quality of logistics fulllment on the satisfaction of
software which are necessary for e-procurement adoption.
e-procurement performance. Konradt et al. (2012) analyze the
effects of organizational and technical antecedence on usability
and commercial transactions in B2B e-commerce. Finally, Devaraj 2.1.1.5. Inadequate business processes to support e-procure-
et al. (2012) investigate the effects of mixing exibilities and ment. Specied aims, goals and context of the e-procurement
purchase volumes on e-procurement performance. application are not aligned with other organizational and managerial
The rest of the paper is organized as follows. The research choices and not integrated with the organization's processes.
background and hypotheses are given in Section 2. The methodol-
ogy used in this study is explained in Section 3. Section 4 presents 2.1.1.6. Inadequate IT infrastructure of suppliers/business partners. The
the data analysis and results of the ISM model, measurement external parties of the supply chain do not have adequate IT
model, and structural model. Finally, concluding remarks are given infrastructure compatible with the e-procurement system.
in Section 5.
2.1.1.7. Incompliance with company culture. Cultural issues such as
absence of a clear corporate policy, lack of a widely accepted
2. Theoretical background and research hypotheses solution, lack of leadership, lack of exible centralized control,
resistance to change, and lack of information quality, produce a
2.1. Theoretical background slowdown in adoption of e-procurement.
Procurement is a vital issue in the retail sector and basic supply 2.1.1.8. Inter-operability concerns with other systems used. It is a
chain activities start with procurement. Hence, procurement technical issue related to lack of compatibility and interface with
directly affects the performance and efciency of the supply chain. other internal systems, mainly due to the fact that software
In this study, we consider a retail store chain which operates in companies have sought to make their product unique. In doing
P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790 79
Table 1
Literature review on barriers of e-procurement systems.
Eadie et al. Gunasekaran and Ngai Eadie et al. Farzin and Nezhad Sitar Eei et al. This
(2007) (2008) (2010) (2010) (2011) (2012) study
Table 2
Literature review on benets of e-procurement systems.
Morris Knudsen Panayiotou Wong Eadie Gunasekaran Eadie et al. Farzin and Eei This
et al. (2003) et al. and et al. and (2010) Nezhad et al. study
(2000) (2004) Sloan (2007) Ngai (2008) (2010) (2012)
(2004)
so, they have endeavored to stop migration of data between 2.1.1.10. Lack of e-procurement knowledge/skilled personnel. Mainly
systems. related to personnel issues such as older generations that have not
kept up to the advances in IT related elds, but relying heavily on
traditional forms and means of procurement.
certain circumstances and make exception handling necessary, 2.1.2.9. Increased process quality and efciency. Transparency in
and as a result jeopardize the expected benets. system and increased competition among suppliers through
easier communication, intelligence and information access provide
2.1.1.12. Lack of system integration with suppliers/business part- improvements in procurement process quality and efciency.
ners. Difculties in integrating e-systems across rm boundaries
in supply chains if suppliers lack capability. 2.1.2.10. Integrated information sharing. Accelerates the ow of
important information between internal and external business
partners; also provides real-time information sharing within a
2.1.1.13. Resistance to change of internal/external customers in supply
broader structure.
chain. Resistance to change is an inevitable aspect of human
nature. Since the system users are generally unwilling to change
their way of working to which they are accustomed, that might be 2.1.2.11. Minimization of process errors. Eliminating manual pro-
a strong barrier in adopting e-procurement. cesses and paperwork reduces the opportunity for human errors,
inaccuracies, and reworks.
benets of e-procurement systems. 20 barriers and 20 benets are According to the results of the ISM models, 3 barriers (7 benets)
determined as a result of the literature review. of e-procurement systems are found to be the root causes of the
In the second step, eight top managers from the company have other barriers (benets). These barriers and benets are then entered
rated these barriers and benets on a ve-point scale. By taking into the SEM model forming the fourth step of the study. In this step,
the geometric mean (Aczl and Roberts, 1989) of their responses another questionnaire is prepared to develop the SEM model.
and after a brainstorming session, we get the nal set of barriers This questionnaire is also prepared on a ve-point scale. Here, the
and benets that are rated above three. In the nal set, there are aim is to investigate the effects of these barriers and benets on
14 barriers and 15 benets left, which are then entered into the the e-procurement adoption decision and the necessity of the
ISM model. e-procurement system for the company.
In the third step, to identify the contextual relationships within The questionnaire is uploaded to the Intranet of the company.
the barriers and benets of e-procurement systems, another Among 916 people working in a related eld, 277 respondents
brainstorming session is performed with eight top managers from answered the questionnaire, resulting in a response rate of 30.24%.
the company and four experts from academia. Based on the Among these responses, 21 cases contain missing values, giving a
outputs of this session, the ISM models for the barriers and percentage of 7.58%. On the other hand, regarding the variables, all
benets of e-procurement systems are developed. variables except one contain missing values ranging between
Yes
Develop the
reachability matrix
in its conical form Test the structural model
Remove transitivity
from the digraph Is the structural model
validated?
Replace variable
nodes with Yes
relationship
statements
Analyze the effects of
barriers and benefits on e-
procurement adoption
Yes decision
Is there any conceptual
inconsistency?
No
0.72% and 3.61%. Since sample size is especially important for SEM, We test the measurement model using the conrmatory factor
Bayesian imputation (Schafer and Graham, 2002) is performed to analysis (CFA) as described in Hair et al. (2010). We investigate the
estimate the missing values. Readers are referred to Schafer and model 2 and its signicance rst. As Jreskog and Srbom (1993)
Graham (2002) and Chen and stebro (2003) for the advantages of propose, we also examine the 2 with the number of degrees of
Bayesian imputation over other techniques such as listwise dele- freedom, i.e., 2 =df . Additionally, we calculate other goodness-of-
tion and regression imputation. t measures. Based on the recommendations of Hu and Bentler
(1998), we choose standardized root mean square (SRMR),
3.2. Interpretive structural modeling goodness-of-t index (GFI), adjusted goodness-of-t index (AGFI),
normed t index (NFI), comparative t index (CFI), and root mean
This study combines two techniques: ISM and SEM. We will square error of approximation (RMSEA).
discuss ISM in this subsection, and SEM in the following one. ISM After evaluating the t of the measurement model, we assess
is found and handled by Wareld (1973) and its roots come from the convergent validity and discriminant validity of the constructs.
graph theory. The ISM process transforms unclear, poorly articu- We test the convergent validity by examining (i) the factor
lated mental models of systems into visible, well-dened models loadings; (ii) the average variance extracted (AVE) for each latent
useful for many purposes (Sage, 1977). construct; and (iii) construct reliability (CR). To test the discrimi-
Ravi and Shankar (2005) describe the signicant characteristics nant validity, the AVE values for the constructs are compared with
of ISM as follows: (i) This methodology is interpretive as the the square of the correlation estimate between these two con-
judgment of the group decides whether and how different structs (Fornell and Larcker, 1981). After assessing the convergent
elements are related; (ii) it is structural as on the basis of the and discriminant validities, we examine the standardized residual
relationships, an overall structure is extracted from the complex covariances and modication indices to identify the problems in
set of elements; and (iii) it is a modeling technique as the specic the measurement model.
relationships and overall structure are portrayed in a Once the measurement model is validated, we test our struc-
digraph model. tural model where our main focus is to test the hypothesized
The steps involved in the ISM methodology are given below relationships. The goodness-of-t of the structural model is
(Ravi and Shankar, 2005; Govindan et al., 2012): evaluated with the same measures that we use to test the
measurement model. After evaluating the goodness-of-t mea-
Step 1. Variables affecting the system under consideration are sures for the structural model, we nally analyze the path
listed. coefcients and loading estimates. The methodology used in this
Step 2. A contextual relationship is established among variables study is summarized in Fig. 1.
with respect to which pairs of variables would be examined.
Step 3. A Structural Self-Interaction Matrix (SSIM) is developed
for variables, which indicates pairwise relationships among
variables of the system under consideration. 4. Data analysis and results
Step 4. Reachability matrix is developed from the SSIM and the
matrix is checked for transitivity. The transitivity of the con- 4.1. Interpretive structural modeling
textual relation is a basic assumption made in ISM. It states that
if variable A is related to B, and B is related to C, then A is Recall that the rst part of this study aims at identifying the
necessarily related to C. relationships within the barriers and benets of e-procurement
Step 5. The reachability matrix obtained in Step 4 is partitioned systems. As explained in Section 3.1, 14 barriers and 15 benets are
into different levels. determined and they are entered into the ISM model.
Step 6. A digraph is drawn and the transitive links are removed
based on the relationships given in the reachability matrix.
Step 7. The resultant digraph is converted into an ISM model,
by replacing variable nodes with statements. 4.1.1. Structural self-interaction matrix (SSIM)
Step 8. The ISM model developed in Step 7 is reviewed to check ISM methodology suggests using expert opinions based on
for conceptual inconsistency and necessary modications various management techniques such as brainstorming, nominal
are made. technique, etc., in developing the contextual relationships among
the variables (Ravi and Shankar, 2005). Accordingly, to dene
In this study, after applying the ISM methodology to the the contextual relationships among the barriers and benets of
barriers and benets of e-procurement systems, the barriers and e-procurement systems, a brainstorming session is performed
benets that form the base of the hierarchies are then entered into with eight top managers from the company and four experts from
the structural equation model to investigate their effects on the academia. Similar to the previous studies (e.g., Ravi and Shankar,
e-procurement adoption decision. The next subsection describes 2005; Govindan et al., 2012), four symbols are used to denote the
the SEM methodology. direction of the relationship between barriers (benets) i and j:
3.3. Structural equation modeling V Barrier (benet) i will help to alleviate (achieve) barrier
(Benet) j;
SEM is a multivariate technique that enables the researcher to A Barrier (benet) j will be alleviated (achieved) by barrier
simultaneously examine a series of interrelated dependence rela- (Benet) i;
tionships among the measured variables and latent constructs as X Barriers (benets) i and j will help to achieve each other;
well as between the latter ones (Hair et al., 2010). This study uses O Barriers (benets) i and j are unrelated.
Anderson and Gerbing's (1988) two-step approach, in which the
measurement model is estimated prior to the structural model. The structural self-interaction matrices for barriers and
The AMOS 16.0 software is used to test the measurement and benets of e-procurement systems are given in Tables A1 and
structural models based on the maximum likelihood estimation A2, respectively. All tables for the ISM methodology can be found
method. in Appendix A.
P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790 83
4.1.2. Initial reachability matrix variables which it may help achieve, whereas the antecedent set
Once the SSIM is constructed, it is transformed into a binary consists of the variable itself and the other variables which may
matrix named as the initial reachability matrix. The rules for help in achieving it. Thereafter, the intersection of these sets is
transforming SSIM into the initial reachability matrix are given in derived for all the variables. The variables for which the reach-
Table 3. For instance, if the element (i, j) of the SSIM is V, then the ability and intersection sets are the same constitute the top level
element (i, j) of the initial reachability matrix becomes 1 and the in the ISM hierarchy. When a variable is assigned to a level, it is
element (j, i) becomes 0. The initial reachability matrices for discarded from the variable set and the process is repeated for the
barriers and benets of e-procurement systems are given in remaining variables. The process continues until all variables are
Tables A3 and A4, respectively. assigned to a level. The identied levels are then used to construct
the digraph and the nal ISM model. The level partitions
4.1.3. Final reachability matrix for barriers and benets of e-procurement systems are given in
After developing the initial reachability matrix, this matrix is Tables A7A12 and A13A16, respectively.
checked for transitivity resulting in the nal reachability matrix.
Recall that transitivity is a basic assumption in ISM stating that if a
variable A is related to B, and B is related to C, then A is necessarily 4.1.5. ISM model
related to C. The nal reachability matrices for barriers and After dening the levels, the structural model is constructed
benets of e-procurement systems can be found in Tables A5 from the nal reachability matrix, resulting in a digraph. Then, the
and A6, respectively. transitive links are removed based on the relationships given in
the nal reachability matrix, leading to the ISM model. The ISM
4.1.4. Level partitions models for barriers and benets of e-procurement systems are
The next step in ISM is to dene the reachability and ante- given in Figs. 2 and 3, respectively.
cedent sets for each variable from the nal reachability matrix. The Fig. 2 denotes that inadequate IT infrastructure of suppliers/
reachability set consists of the variable itself and the other business partners is a very signicant barrier for e-procurement
systems since it lies at the bottom level of the hierarchy. This
Table 3 barrier then leads to the lack of e-procurement knowledge/skilled
Rules for transforming SSIM into the initial reachability matrix. personnel and lack of adequate technical/IT infrastructure. These
three barriers constitute the bottom two levels of the hierarchy,
Structural self-interaction matrix Initial reachability matrix
meaning that these are strong drivers and may be treated as the
Element (i, j) Element (i, j) Element (j, i) root causes of the remaining barriers. Therefore, top management
should initiate a comprehensive strategic plan to improve the
V 1 0 technical/IT infrastructure of the company and the whole supply
A 0 1
chain. This strategy should also be supported by procurement of
X 1 1
O 0 0 skilled personnel and by training programs to improve the technical
expertise needed for e-procurement adoption. Overcoming these
11- Resistance to
change of internal/
external customers
in supply chain
5- Lack of e-
8- Lack of adequate
procurement
technical/IT
knowledge/skilled
infrastructure
personnel
9- Inadequate IT
infrastructure of
suppliers/business
partners
6- Cost savings in
overall purchasing
process
12- Integrated
information sharing
above 0.50, they are also acceptable. Second, the average variance 2 =df r 3.00 1.836
extracted (AVE) is calculated for each latent construct. AVE values SRMR r 0.10 0.050
are calculated as 0.49 and 0.62 for barriers and benets, respec- GFI Z 0.90 0.956
AGFI Z 0.85 0.926
tively. Since an AVE of 0.50 or higher suggests adequate conver-
NFI Z 0.90 0.955
gent validity, one can see that the AVE for barriers is just below CFI Z 0.95 0.979
this critical level. Third, we calculate the construct reliability (CR), RMSEA r 0.08 0.055
which is also an indicator of convergent validity. CR values are
calculated as 0.74 and 0.92 for barriers and benets, respectively.
Since they both exceed the threshold of 0.70, this also validates
convergent validity. The results for the measurement model can be
found in Table 6. R1 0.655
To test the discriminant validity, the AVE values for the
constructs are compared with the square of the correlation 0.775
R2 Barriers
estimate between these two constructs (Fornell and Larcker,
1981). The correlation estimate between Barriers and Benets is R3 0.663
H1: 0.154*
calculated as 0.30. Since AVE values for both constructs are greater
than the squared correlation estimate, this result provides good
evidence of discriminant validity.
N1 0.303
After assessing the convergent and discriminant validities, we
Adoption
examine the standardized residual covariances and modication
N2 0.785 0.747
indices to identify the problems in the measurement model.
Standardized residual covariances should be less than |2.50| for a
N3 0.741 H2: 0.484**
correct model. The results denote that only the standardized
residual covariance between R2 and N4 is outside this range and 0.807
N4 Benefits
it is calculated as 2.68. However, it is below another threshold of 0.869
|4.00|, where existence of values above |4.00| suggests a potentially
N5 0.755
unacceptable degree of error (Hair et al., 2010). Therefore, the
standardized residual covariances indicate no problem in the
N6 0.811
measurement model. On the other hand, we also examine the
modication indices. High modication indices suggest that the t
N7
could be improved signicantly by freeing the corresponding path
to be estimated. Since the modication indices of the measure- *
p-value = 0.023 **
p-value < 0.001
ment model (available upon request) are reasonable, this result
also provides good evidence of model validation. Fig. 4. Results of the path analysis.
86 P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790
model (Hair et al., 2010). From Fig. 4, it can be seen that the path knowledge and capability of human resources for adopting e-
coefcient estimate between barriers and adoption is 0.15 and it procurement. Overcoming these barriers will help to reduce the
is signicant at the 0.05 level. Thus, our rst hypothesis is negative effects of all other barriers up to internal/external
supported, i.e., barriers of e-procurement systems have negative resistance to change.
effect on the adoption decision. On the other hand, the path When we turn back to the benets of e-procurement systems,
coefcient estimate between benets and adoption is 0.48 and it is integrated information sharing forms the base of the hierarchy and
signicant at the 0.001 level. Thus, our second hypothesis is also it is found as the most signicant benet. Therefore, enhancement
supported, i.e., benets of e-procurement systems have positive and well-integration in information sharing within the supply
effect on the adoption decision. As stated before, besides these chain is the key factor for the success of e-procurement adoption.
hypotheses, another point of interest is to examine whether the An improvement in integrated information sharing helps to
barriers or benets of e-procurement systems have higher impact achieve all other benets, which are easier access to market data
on the adoption decision. Since the path coefcient estimate of and enhanced intelligence; quicker response to problems through
benets is higher than that of the barriers, we conclude that real-time information; on-line and real time reporting; improved
benets of an e-procurement system overweigh its barriers. Thus, supply chain transparency; simplied and streamlined purchasing
it would be benecial for the company to adopt the e-procurement process; improved communication and collaboration in supply
system. However, it is also noteworthy that the squared multiple chain; and nally cost savings in overall purchasing process.
correlations (i.e., R2) of Adoption is calculated as 0.21. In other The results of the second part of the study denote that barriers
words, benets and barriers explain 21% of the variance of (benets) of e-procurement systems have negative (positive) effect
Adoption. Therefore, adding other latent constructs that may affect on the e-procurement adoption decision and the effect of benets
the e-procurement adoption decision would increase the variance on the adoption decision is higher than that of the barriers, which
explained. might be considered as indirect costs of adoption. In other words,
the potential benets of e-procurement systems have stronger
impacts than the costs that the company may put up with due to
5. Conclusion the potential barriers. Thus, based on the results of our cost/
benet analysis, it would be benecial for the company to adopt
This study investigates the effects of the barriers and benets of the e-procurement system.
e-procurement systems on the e-procurement adoption decision. It is noteworthy that the results of this study might differ for
An empirical analysis has been performed for a retail store chain other companies and sectors. Thus, as a further study, the models
which operates in book and stationery sector in Turkey. could be enhanced with other factors and a sector-base analysis
The rst aim of the study is to determine the best route for the could be performed from a larger perspective. Besides, the method
company to follow at their transition period from traditional proposed in this paper could be considered as an instrument and a
methods of purchasing to e-procurement adoption. This is guide for change management for the companies. Accordingly,
achieved by measuring the driving power of each potential barrier companies could apply this method to help their transition
and benet as well as the inter-relations within them. The second decisions from traditional systems to e-systems.
and the ultimate aim of the study is to put forth whether barriers
or benets have higher impact on the company's e-procurement
adoption decision by using an approach based on cost/benet
analysis. Acknowledgments
The results of the rst part of the study denote that among the
barriers of e-procurement systems, inadequate IT infrastructure of The authors are grateful to the Editor and the referee for their
suppliers/business partners is the most important barrier in the valuable comments and suggestions.
adoption of e-procurement systems. This barrier then leads to two
other important barriers, which are lack of adequate technical/IT
infrastructure and lack of e-procurement knowledge/skilled
personnel. Thus, in tackling the barriers of e-procurement systems, Appendix A. Tables for the ISM methodology
the management of the company should focus more on
IT/technical infrastructure of the supply chain, and skills, See Tables A1-A16.
Table A1
Structural self-interaction matrix for barriers of e-procurement systems.
Barriers 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Table A2
Structural self-interaction matrix for benets of e-procurement systems.
Benets 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Table A3 Table A5
Initial reachability matrix for barriers of e-procurement systems. Final reachability matrix for barriers of e-procurement systems.
Barriers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Barriers 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 1a 0 0 0 1 0 0 0
2 0 1 0 0 0 0 0 0 0 0 1 0 0 1 2 0 1 0 0 0 0 1a 0 0 0 1 0 0 1
3 0 0 1 0 0 0 1 0 0 0 1 0 0 0 3 1a 1a 1 0 0 0 1 0 0 0 1 1a 0 1a
4 0 0 0 1 0 0 0 0 0 0 1 0 1 0 4 0 0 0 1 0 0 0 0 0 0 1 0 1 0
5 0 0 0 1 1 1 1 0 0 0 1 0 0 1 5 1a 1a 0 1 1 1 1 0 0 1a 1 1a 1a 1
6 0 1 0 1 0 1 0 0 0 1 1 1 0 1 6 0 1 0 1 0 1 1a 0 0 1 1 1 1a 1
7 1 1 0 0 0 0 1 0 0 0 1 1 0 1 7 1 1 1a 0 0 0 1 0 0 1a 1 1 0 1
8 0 0 0 1 0 0 0 1 0 1 1 1 0 1 8 0 1a 0 1 0 1a 1a 1 0 1 1 1 1a 1
9 0 0 0 1 0 1 0 1 1 1 1 1 0 1 9 0 1a 0 1 0 1 1a 1 1 1 1 1 1a 1
10 0 1 0 0 0 1 0 0 0 1 1 0 0 1 10 0 1 0 1a 0 1 1a 0 0 1 1 1a 0 1
11 0 0 0 0 0 0 0 0 0 0 1 0 0 0 11 0 0 0 0 0 0 0 0 0 0 1 0 0 0
12 0 1 0 0 0 0 1 0 0 1 1 1 0 1 12 1a 1 0 0 0 1a 1 0 0 1 1 1 0 1
13 0 0 0 1 0 0 0 0 0 0 1 0 1 0 13 0 0 0 1 0 0 0 0 0 0 1 0 1 0
14 0 0 0 0 0 0 1 0 0 0 1 0 0 1 14 1a 1a 0 0 0 0 1 0 0 0 1 1a 0 1
a
Values obtained by incorporating transitivity.
Table A4 Table A6
Initial reachability matrix for benets of e-procurement systems. Final reachability matrix for benets of e-procurement systems.
Benets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Benets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a a a a a a
1 1 0 1 0 1 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2 0 1 1 0 0 1 0 0 1 0 0 0 0 1 1 2 1a 1 1 1a 1a 1 0 0 1 1a 1a 0 1a 1 1
3 1 1 1 1 1 1 0 0 1 1 1 0 1 1 1 3 1 1 1 1 1 1 1a 1a 1 1 1 1a 1 1 1
4 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 4 1 1a 1 1 1 1 1 1 1 1 1 1 1 1 1
5 1 0 0 0 1 1 1 0 1 1 0 0 1 1 1 5 1 1a 1a 1a 1 1 1 1a 1 1 1a 1a 1 1 1
6 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0
7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
8 1 1 0 0 1 1 0 1 0 1 1 0 0 1 1 8 1 1 1a 1a 1 1 1a 1 1a 1 1 0 1a 1 1
9 0 0 0 0 0 1 0 0 1 1 0 0 0 1 1 9 0 1a 0 0 1a 1 0 0 1 1 1a 0 0 1 1
10 0 0 0 0 1 1 0 0 1 1 1 0 0 1 1 10 1a 1a 1a 1a 1 1 1a 1a 1 1 1 0 1a 1 1
11 1 0 1 1 1 1 0 1 1 1 1 0 0 1 1 11 1 1a 1 1 1 1 1a 1 1 1 1 1a 1a 1 1
12 1 1 1 1 1 1 1 0 1 1 1 1 1 1 1 12 1 1 1 1 1 1 1 1a 1 1 1 1 1 1 1
13 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
14 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 14 0 1a 0 0 1a 1a 0 0 1a 1a 1a 0 0 1 1
15 0 1 0 0 1 1 0 0 1 1 1 0 0 1 1 15 1a 1 1a 1a 1 1 1a 1a 1 1 1 0 1a 1 1
a
Values obtained by incorporating transitivity.
88 P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790
Table A7
Level partitions for barriers of e-procurement systems Iteration 1.
1 1, 3, 7, 11 1, 3, 5, 7, 12, 14 1, 3, 7
2 2, 7, 11, 14 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 2, 7, 14
3 1, 2, 3, 7, 11, 12, 14 1, 3, 7 1, 3, 7
4 4, 11, 13 4, 5, 6, 8, 9, 10, 13 4, 13
5 1, 2, 4, 5, 6, 7, 10, 11, 12, 13, 14 5 5
6 2, 4, 6, 7, 10, 11, 12, 13, 14 5, 6, 8, 9, 10, 12 6, 10, 12
7 1, 2, 3, 7, 10, 11, 12, 14 1, 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 1, 2, 3, 7, 10, 12, 14
8 2, 4, 6, 7, 8, 10, 11, 12, 13, 14 8, 9 8
9 2, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14 9 9
10 2, 4, 6, 7, 10, 11, 12, 14 5, 6, 7, 8, 9, 10, 12 6, 7, 10, 12
11 11 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 11 I
12 1, 2, 6, 7, 10, 11, 12, 14 3, 5, 6, 7, 8, 9, 10, 12, 14 6, 7, 10, 12, 14
13 4, 11, 13 4, 5, 6, 8, 9, 13 4, 13
14 1, 2, 7, 11, 12, 14 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 2, 7, 12, 14
Table A8
Level partitions for barriers of e-procurement systems Iteration 2.
1 1, 3, 7 1, 3, 5, 7, 12, 14 1, 3, 7 II
2 2, 7, 14 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 2, 7, 14 II
3 1, 2, 3, 7, 12, 14 1, 3, 7 1, 3, 7
4 4, 13 4, 5, 6, 8, 9, 10, 13 4, 13 II
5 1, 2, 4, 5, 6, 7, 10, 12, 13, 14 5 5
6 2, 4, 6, 7, 10, 12, 13, 14 5, 6, 8, 9, 10, 12 6, 10, 12
7 1, 2, 3, 7, 10, 12, 14 1, 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 1, 2, 3, 7, 10, 12, 14 II
8 2, 4, 6, 7, 8, 10, 12, 13, 14 8, 9 8
9 2, 4, 6, 7, 8, 9, 10, 12, 13, 14 9 9
10 2, 4, 6, 7, 10, 12, 14 5, 6, 7, 8, 9, 10, 12 6, 7, 10, 12
12 1, 2, 6, 7, 10, 12, 14 3, 5, 6, 7, 8, 9, 10, 12, 14 6, 7, 10, 12, 14
13 4, 13 4, 5, 6, 8, 9, 13 4, 13 II
14 1, 2, 7, 12, 14 2, 3, 5, 6, 7, 8, 9, 10, 12, 14 2, 7, 12, 14
Barrier Reachability set Antecedent set Intersection set Level Barrier Reachability set Antecedent set Intersection set Level
3 3, 12, 14 3 3 5 5 5 5 V
5 5, 6, 10, 12, 14 5 5 8 8 8, 9 8 V
6 6, 10, 12, 14 5, 6, 8, 9, 10, 12 6, 10, 12 9 8, 9 9 9
8 6, 8, 10, 12, 14 8, 9 8
9 6, 8, 9, 10, 12, 14 9 9
10 6, 10, 12, 14 5, 6, 8, 9, 10, 12 6, 10, 12
12 6, 10, 12, 14 3, 5, 6, 8, 9, 10, 12, 14 6, 10, 12, 14 III
14 12, 14 3, 5, 6, 8, 9, 10, 12, 14 12, 14 III
Barrier Reachability set Antecedent set Intersection set Level Barrier Reachability set Antecedent set Intersection set Level
3 3 3 3 IV 9 9 9 9 VI
6 6, 10 5, 6, 8, 9, 10 6, 10 IV
8 6, 8, 10 8, 9 8
9 6, 8, 9, 10 9 9
10 6, 10 5, 6, 8, 9, 10 6, 10 IV
P. Tokta-Palut et al. / Int. J. Production Economics 158 (2014) 7790 89
Table A13
Level partitions for benets of e-procurement systems Iteration 1.
1 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
2 1, 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 9, 10, 11, 13, 14, 15
3 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
4 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
5 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15
6 6 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 6 I
7 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 3, 4, 5, 7, 8, 10, 11, 13, 15
9 2, 5, 6, 9, 10, 11, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 2, 5, 9, 10, 11, 14, 15
10 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15
11 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15
12 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 3, 4, 5, 7, 11, 12, 13 1, 3, 4, 5, 7, 11, 12, 13
13 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
14 2, 5, 6, 9, 10, 11, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 2, 5, 9, 10, 11, 14, 15
15 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15
Table A14
Level partitions for benets of e-procurement systems Iteration 2.
1 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
2 1, 2, 3, 4, 5, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 9, 10, 11, 13, 14, 15 II
3 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
4 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
5 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 II
7 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
8 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15 1, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 3, 4, 5, 7, 8, 10, 11, 13, 15
9 2, 5, 9, 10, 11, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 2, 5, 9, 10, 11, 14, 15 II
10 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15 II
11 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 II
12 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 3, 4, 5, 7, 11, 12, 13 1, 3, 4, 5, 7, 11, 12, 13
13 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 13, 15
14 2, 5, 9, 10, 11, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 2, 5, 9, 10, 11, 14, 15 II
15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, 14, 15 II
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