Procurement Process Optimization and Firm Supply Chain Performance: The Mediating Effect of Information Technology Integration
DOI:
https://doi.org/10.47941/ijecop.2516Keywords:
Procurement Process Optimization, Firm Supply Chain Performance, Information Technology IntegrationAbstract
Purpose: The main objective of the study was to assess the mediating effect of information technology integration on the relationship between procurement process optimization and firm supply chain performance.
Methodology: The study adopts a quantitative explanatory research design. This design is suitable as it examines the causal relationships between procurement process optimization, information technology integration, and firm supply chain performance. A purposive sampling technique was used to obtain a sample size of 200. The findings of the study indicate a positive and significant direct effect of Procurement Process Optimization on Firm Supply Chain Performance. The findings of the study also demonstrate a strong positive direct effect of Procurement Process Optimization on Information Technology Integration.
Findings: The findings of the study indicate a substantial positive impact of Information Technology Integration on Firm Supply Chain Performance. The findings of the study finally show the indirect effect of Procurement Process Optimization on Firm Supply Chain Performance mediated by Information Technology Integration.
Unique Contribution to Theory, Policy and Practice: This study advances theory by integrating procurement optimization, IT integration, and supply chain performance, informs policy by advocating for digital procurement reforms, and provides practical insights for firms to enhance supply chain efficiency through technology-driven procurement strategies. The study offers insights into how optimizing procurement processes through IT integration can reduce corruption, inefficiencies, and delays in public procurement systems. The research further provides a roadmap for businesses to integrate procurement processes with supply chain management for greater agility and competitiveness.
Downloads
References
Ahuja, V., & Khuntia, J. (2021). Exploring the role of procurement process optimization in enhancing supply chain performance. Journal of Business Logistics, 42(3), 45-67.
Ali, M., Li, X., & Zhang, Y. (2020). Optimizing procurement processes for enhanced supply chain resilience. Journal of Supply Chain Management, 56(4), 102-118.
Arjan, K., Patel, R., & Singh, S. (2021). Strategic alignment of procurement practices with supply chain objectives. Supply Chain Strategies Review, 14(3), 55-68.
Barney, J. B., & Arikan, A. M. (2001). The resource-based view: Origins and implications. In M. A. Hitt, R. E. Freeman, & J. S. Harrison (Eds.), Handbook of Strategic Management (pp. 124–188). Oxford University Press.
Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2020). Supply Chain Logistics Management. McGraw-Hill Education.
Boyd, B. K., Haynes, K. T., & Hitt, M. A. (2010). Contingency hypotheses in strategic management research: Use, disuse, or misuse? Journal of Management, 36(1), 1-9.
Cagliano, R., Caniato, F., & Spina, G. (2006). The linkage between supply chain integration and manufacturing improvement programs. International Journal of Operations & Production Management, 26(3), 282–299.
Caniato, F., Golini, R., & Ronchi, S. (2020). Improving supply chain performance through procurement optimization: Insights from a case study. Journal of Supply Chain Management, 56(4), 25-42.
Cao, M., & Zhang, Q. (2020). Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of Operations Management, 29(3), 163-180.
Chang, W., Ellinger, A. E., Kim, K. K., & Franke, G. R. (2016). Supply chain integration and firm financial performance: A meta-analytic investigation of the moderating effects of demand uncertainty, operational objectives, and operational slack. Journal of Business Logistics, 37(1), 27-46.
Chaudhuri, A., Boer, H., & Taran, Y. (2018). Supply chain integration, risk management, and manufacturing flexibility. International Journal of Operations & Production Management, 38(3), 690-712.
Chaudhuri, A., Bose, I., & Banerjee, P. (2021). Advanced analytics and business intelligence tools for procurement process optimization. Journal of Supply Chain Management, 57(4), 421-437.
Chen, I. J., Paulraj, A., & Lado, A. A. (2013). Strategic purchasing, supply management, and firm performance. Journal of Supply Chain Management, 40(3), 4-17.
Chen, L., & Li, Y. (2021). Financial outcomes of optimized procurement strategies. International Journal of Financial Studies, 7(2), 120-137.
Chen, W., Zhang, T., & Lee, S. (2020). Enhancing procurement efficiency through process optimization. Operations Research Journal, 32(5), 86-102.
Chen, X., Zhao, Y., & Wang, H. (2021). IT integration and supply chain performance: A review. Information Systems Journal, 29(7), 214-229.
Christopher, M. (2018). Logistics and Supply Chain Management. Pearson UK.
Delic, M., Eyers, D. R., & Howard, T. J. (2019). Additive manufacturing: A framework for implementation in supply chains. Journal of Manufacturing Technology Management, 30(1), 2-18.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660-679.
Gao, X., & Li, R. (2020). The role of agility in procurement process optimization. Journal of Business Research, 73(3), 45-57.
Gao, Y., Wang, Q., & Zhang, F. (2021). Advanced procurement technologies: Impact on efficiency and cost. Technology in Supply Chains, 12(6), 142-159.
Ghosh, R., Chatterjee, A., & Banerjee, S. (2018). IT integration for procurement optimization: A case study approach. International Journal of Procurement and Supply Chain Management, 12(3), 145-162.
Guan, Y., & Zhang, W. (2019). The adoption of e-procurement and its impact on operational efficiency. Journal of Modern Procurement, 25(2), 87-101.
Gunasekaran, A., Subramanian, N., & Papadopoulos, T. (2020). Information technology and procurement process optimization: A pathway to improved supply chain performance. International Journal of Production Economics, 227, 107-123.
Gupta, S., & Bansal, R. (2020). IT integration and inventory management in supply chains. Journal of Operations Management, 48(4), 93-109.
Han, K. (2017). Leveraging IT capabilities for firm performance. Journal of Information Technology, 32(4), 315–329.
Handfield, R. B., Monczka, R. M., Giunipero, L. C., & Patterson, J. L. (2019). Purchasing and Supply Chain Management. Cengage Learning.
Hohenstein, N., Feisel, E., Hartmann, E., & Giunipero, L. (2021). Supply chain risk management strategies: Impacts on supply chain performance. Supply Chain Management Review, 15(3), 72-81.
Huang, Z., & Chiu, Y. (2020). The impact of automation on supply chain performance. Automation in Logistics, 18(3), 67-81.
Ivanov, D., & Dolgui, A. (2020). Digital supply chain twins: Balancing resilience and cost in procurement. International Journal of Production Research, 58(11), 3333-3349.
Jajja, M. S. S., Chatha, K. A., & Farooq, S. (2018). The impact of internal and external supply chain integration on operational performance: An empirical study of Pakistani firms. International Journal of Logistics Management, 29(1), 93-122.
Jin, R., & Yang, H. (2018). Enhancing supply chain collaboration through IT integration. International Journal of Logistics, 22(7), 113-127.
Jindal, R., & Sharma, V. (2021). Enhancing customer service through IT-enabled supply chain systems. Journal of Business Logistics, 42(2), 199-217.
Jones, D., & Clark, P. (2022). Digital transformation in procurement: Blockchain and analytics. Supply Chain Technology Review, 10(5), 205-223.
Kamble, S. S., Gunasekaran, A., & Dhone, N. C. (2020). Digital transformation in supply chains: Real-time data analytics and agility. Computers & Industrial Engineering, 139, 105-130.
Kauffman, R. J., & Mohtadi, H. (2018). Information technology in procurement: Implications for supply chain performance. Management Science, 44(4), 1002-1018.
Kim, J., & Lee, H. (2022). Visibility and control in optimized procurement processes. Journal of Supply Chain Insights, 15(1), 102-118.
Kim, M., & Chai, S. (2016). A systematic review of research on supply chain management in e-commerce. International Journal of Logistics Management, 27(3), 543-569.
Kumar, A., & Lee, M. (2021). Challenges in IT integration for supply chain performance. Journal of Supply Chain Innovation, 19(2), 73-89.
Kumar, N., & Patel, A. (2022). Financial benefits of IT integration in procurement processes. Journal of Operational Efficiency, 15(1), 87-99.
Kumar, P., & Bansal, R. (2019). ERP systems and their role in IT integration. Journal of Enterprise Systems, 24(3), 154-168.
Kumar, R., Patel, T., & Shukla, N. (2022). Supplier relationships in optimized procurement processes. Journal of Business and Supply Chain Dynamics, 27(3), 89-108.
Kumar, V., Singh, R. K., & Kumar, P. (2021). Collaborative procurement in digital supply networks: The role of technology integration. Journal of Purchasing & Supply Management, 27(1), 100-123.
Lee, C., Park, D., & Singh, J. (2022). Collaboration through IT systems: Enhancing supply chain performance. Journal of Business and IT Strategy, 33(4), 223-237.
Lee, H. L., Padmanabhan, V., & Whang, S. (2014). Information distortion in a supply chain: The bullwhip effect. Management Science, 50(12_supplement), 1875–1886.
Lee, H., & Huang, Y. (2021). Visibility and coordination in IT-integrated supply chains. Supply Chain Review, 28(5), 303-318.
Lee, H., & Park, J. (2019). Strategic partnerships through procurement optimization. Supply Chain Collaboration Review, 28(2), 97-115.
Lee, J., Kim, H., & Zhao, M. (2021). Procurement process optimization and supply chain performance. International Supply Chain Journal, 20(3), 185-199.
Lee, S., Kim, J., & Park, H. (2020). Data management capabilities and decision-making: The role of IT in procurement. Operations Research and Analytics, 22(3), 201-218.
Li, X., Zhao, X., & Wang, W. (2022). The mediating role of information technology in procurement and supply chain performance. Journal of Operations Management, 45, 67-89.
Lin, B., & Wu, J. (2014). Exploring the role of information technology in competitive advantage through RBV. Decision Sciences, 45(5), 865-896.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2020). Purchasing and Supply Chain Management. Cengage Learning.
Nguyen, T., Chen, S., & Zhang, Y. (2018). Supplier selection and procurement efficiency. Journal of Purchasing & Supply Management, 24(2), 76-91.
Nollet, J., Beaulieu, M., & Fabbe-Costes, N. (2020). Supply chain integration, a performance measurement approach. International Journal of Production Economics, 222, 107510.
Nwankpa, J. K., & Roumani, Y. (2016). IT capability and organizational performance: The mediating roles of dynamic capabilities. Journal of Management Information Systems, 33(2), 536-562.
Patel, D., & Singh, A. (2019). Cost implications of IT implementation in supply chains. Journal of Financial and Supply Chain Efficiency, 16(4), 89-105.
Patel, N., & Shukla, M. (2023). Mitigating supply chain risks through procurement optimization. Risk Management in Supply Chains, 21(6), 93-112.
Paulraj, A., Chen, I. J., & Flynn, J. (2008). Levels of strategic purchasing: Impact on supply integration and performance. Journal of Supply Chain Management, 44(1), 3–18.
Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes and performance: The strategic role of alignment and integration. International Journal of Production Economics, 171, 157-169.
Ruel, S., Renaud, J., & Bergeron, J. (2021). Procurement strategies and lean supply chain operations: Enhancing efficiency. Supply Chain Forum: An International Journal, 22(4), 345-356.
Saeed, R., & Arshad, M. (2019). Order accuracy and lead time reduction through technology in procurement. Journal of Technology in Operations, 17(5), 134-149.
Sanders, N. R., Zacharia, Z. G., & Fugate, B. S. (2011). The impact of supply chain IT on performance: A business process perspective. International Journal of Production Economics, 130(1), 186-195.
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson Education.
Sharma, A., & Ghosh, D. (2018). ERP and SCM software for operational efficiency in supply chains. Journal of Technology in Supply Chain, 23(6), 123-135.
Singh, P., Kumar, M., & Ali, T. (2020). Enhancing agility through procurement process optimization. Agile Supply Chains, 19(4), 74-89.
Singh, R., & Sahu, A. (2020). The impact of IT integration on procurement cycle times and costs. Journal of Supply Chain Innovation, 30(2), 212-229.
Smith, J., & Kumar, A. (2022). Risk management in procurement processes. Journal of Operational Risk and Procurement, 30(2), 91-108.
Smith, L., & Liu, W. (2021). IT-enabled procurement systems and supplier coordination. Supply Chain Management Journal, 45(3), 325-342.
Vitalari, P., Venkatesh, V., & Davis, F. (2018). IT as a strategic resource in organizational value creation. MIS Quarterly, 42(1), 355-372.
Walker, H., & Brammer, S. (2019). Sustainable procurement practices in global supply chains. Journal of Supply Chain Management, 45(4), 1-22.
Wang, E. T., & Gunasekaran, A. (2016). Modeling the role of information technology in global supply chain management. Journal of Operations Management, 22(3), 221-236.
Wang, H., Zhao, L., & Zhang, R. (2021). Procurement analytics and blockchain in modern supply chains. Journal of Digital Procurement, 14(3), 209-225.
Wang, Z., Li, Y., & Zhao, X. (2020). Data-driven insights for supply chain optimization through IT integration. Operations Management Journal, 19(2), 145-168.
Wiengarten, F., Humphreys, P., McKittrick, A., & Fynes, B. (2012). Investigating the impact of e-business applications on supply chain collaboration in the German automotive industry. International Journal of Operations & Production Management, 33(1), 25-48.
Wu, L., & Chiu, M. L. (2015). The impact of information technology resources on operational and market performance of logistics firms. International Journal of Information Management, 35(3), 374-385.
Xu, J., Li, W., & Tang, Y. (2023). Supplier performance in optimized procurement systems. Supplier Dynamics Journal, 31(5), 104-122.
Yang, J., Zhang, X., & Wu, Q. (2018). IT systems for enhancing supplier relationship management. Journal of Supplier and Partner Relations, 25(4), 372-389.
Zhang, M., & Zhao, H. (2019). The role of IT tools in procurement efficiency and error reduction. International Journal of Procurement Studies, 17(2), 178-198.
Zhang, Y., Li, P., & Sun, H. (2019). Real-time data sharing and its impact on supply chain performance. Journal of Supply Chain Visibility, 12(4), 123-134.
Zhao, K., & Zhao, L. (2018). Stockouts and timely material availability in supply chains. Logistics Review, 12(4), 97-112.
Zhao, X., Nguyen, Q., & Lee, J. (2019). Metrics for procurement optimization impact. Supply Chain Performance Metrics, 16(2), 109-124.
Zhu, Q., Sarkis, J., & Lai, K. H. (2023). IT-enabled decision support for supply chain sustainability and performance. Journal of Cleaner Production, 365, 133-150.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ofori Issah, Hanson Obiri Yeboah, Rosemary Makafui Agboyi, Dr. Samuel Agyei Baah, Dr. Agyeman Ofori
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
