Factors Influence on E-procurement Adoption in Tea Processing Factories in Sri Lanka

Authors

  • Wickrama Arachchillage Ayomi Menaka Bandara University of Colombo, Sri Lanka
  • Dr. Jayani Chamarika Athapaththu University of Colombo, Sri Lanka

DOI:

https://doi.org/10.47941/ijscl.2362

Keywords:

Adoption, E-procurement, TOE framework, Tea processing factory, Sri Lanka

Abstract

Purpose: Information communication technology (ICT) to handle transactions, is widely used across many industries, yet factors influencing its adoption, particularly in tea industry in developing countries like Sri Lanka, have been overlooked. This study aims to identify the factors influencing on digitization of the procurement in tea processing factories in Sri Lanka.

Methodology: The study relies on a quantitative research approach using a survey design. Rathnapura district, was selected as it is the largest law country tea growing district and sample of fifty factory staff members were selected using convenience sampling technique. Data was analyzed by use of the Statistical Package of Social Sciences.

Findings: Questionnaire survey results revealed that user friendliness and top management support have a significant and positive impact on e-procurement adoption while perceived benefits, ICT literacy and environmental factors not having a statistically significant impact on e-procurement adoption.

Unique contribution to theory, practice and policy: Study provides recommendation to achieve higher degree of adoption and successful implementation of e-procurement technology among tea processing factories in Sri Lanka.

Downloads

Download data is not yet available.

Author Biographies

Wickrama Arachchillage Ayomi Menaka Bandara, University of Colombo, Sri Lanka

Post Graduate Student: Faculty of Management and Finance

Dr. Jayani Chamarika Athapaththu, University of Colombo, Sri Lanka

Senior Lecturer: Faculty of Management and Finance

References

Aboelazm, K. S. (2022). E-procurement in the international experience: an approach to reduce corruption in administrative contracts in Egypt. International Journal of Procurement Management, 15(3), 340-364. doi.org/10.1504/IJPM.2022.122570

Abubakar, M. I. (2021). Implementation of e-procurement in public building construction projects of the federal capital territory administration, abuja (Doctoral dissertation). http://repository.futminna.edu.ng:8080/jspui/handle/123456789/14001

Afolabi, A., Ibem, E., Aduwo, E., Tunji-Olayeni, P., & Oluwunmi, O. (2019). Critical success factors (CSFs) for e-Procurement adoption in the Nigerian construction industry. Buildings, 9(2), 47. doi.org/10.3390/buildings9020047

Al-Hudhaif, S., & Alkubeyyer, A. (2011). E-commerce adoption factors in Saudi Arabia. International Journal of Business and Management, 6(9), 122.

Al-Qirim, N. A. (2008, December). Electronic Government Issues and Implications. In 2008 International Conference on Innovations in Information Technology (pp. 391-395). IEEE.

Ali, A., Rahman, M. S. A., & Ismail, W. N. S. W. (2012). Predicting continuance intention to use accounting information systems among SMEs in Terengganu, Malaysia. International Journal of Economics and Management, 6(2), 295-320.

Alsaad, A., Mohamad, R., & Ismail, N. A. (2017). The moderating role of trust in business to business electronic commerce (B2B EC) adoption. Computers in Human Behavior, 68, 157-169. https://doi.org/10.1016/j.chb.2016.11.040

Altayyar, A., & Beaumont-Kerridge, J. (2016). External factors affecting the adoption of e-procurement in Saudi Arabian's SMEs. Procedia-Social and Behavioral Sciences, 229, 363-375. https://doi.org/10.1016/j.sbspro.2016.07.147

Aman, A., & Kasimin, H. (2011). E‐procurement implementation: a case of Malaysia government. Transforming Government: People, Process and Policy, 5(4), 330-344.

BarNir, A., Gallaugher, J. M., & Auger, P. (2003). Business process digitization, strategy, and the impact of firm age and size: the case of the magazine publishing industry. Journal of Business Venturing, 18(6), 789-814. https://doi.org/10.1016/S0883-9026(03)00030-2.

Chan, Y. H. (2004). Biostatistics 203. Survival analysis. Singapore medical journal, 45, 249-256.

Chatterjee, D., Grewal, R., & Sambamurthy, V. (2002). Shaping up for e-commerce: institutional enablers of the organizational assimilation of web technologies. MIS quarterly, 65-89.

Chen, Y., & Rankin, J. H. (2006, August). A framework for benchmarking e-procurement in the AEC industry. In Proceedings of the 8th international conference on Electronic commerce: The new e-commerce: innovations for conquering current barriers, obstacles and limitations to conducting successful business on the internet (pp. 411-419).doi.org/10.1145/1151454.1151520

Chepkemoi, E. (2014). Challenges of e-procurement implementation among multinational tea companies in Kerichocounty, Kenya (Doctoral dissertation, University of Nairobi).

Chirchir, E. K., Ngeno, V., & Chapkwony, J. (2015). Relationship between e-procurement adoption & supply chain management practices in tea firms. International Journal of Managerial Studies & Research, 3(2), 25-36.

Christiansen, V., Haddara, M., & Langseth, M. (2022). Factors affecting cloud ERP adoption decisions in organizations. Procedia Computer Science, 196, 255-262. https://doi.org/10.1016/j.procs.2021.12.012

Chwelos, P., Benbasat, I., & Dexter, A. S. (2001). Empirical test of an EDI adoption model. Information systems research, 12(3), 304-321. doi.org/10.1287/isre.12.3.304.9708

Clohessy, T., & Acton, T. (2019). Investigating the influence of organizational factors on blockchain adoption: An innovation theory perspective. Industrial Management & Data Systems. doi/10.1108/IMDS-08-2018-0365

Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. Applied innovation, 2(6-10), 71.

Cui, W. (2011). Creating consumer-based brand equity in the chinese sports shoes market: Measurement, challenges and opportunities. 1-201

Da Silva, Vander Luiz et al., (2020.) “Implementation of Industry 4.0 concept in companies: empirical evidences” International journal of computer integrated manufacturing 33(4), pp.325–342. doi/abs/10.1080/0951192X.2019.1699258.

Daoud, L., & Ibrahim, M. (2019). Antecedents and impacts of electronic procurement usage among Jordanian large firms. Journal of Advanced Research in Business and Management Studies, 14(1), 52-65.

Daud, N.M., Mohammad, N., Azmi, A.E. and Mohamed, I.S. (2013) Factors influencing the usage of e-Procurement among contractor companies in Malaysia. Business and Management Quarterly Review, 4(3&4), p.62-8.

Done, A., Maedler, M., & Liao, C. (2011). Technology in purchasing: Impacts on performance and future confidence. Available at SSRN 1873208. doi.org/10.2139/ssrn.1873208.

Dong, L., Neufeld, D., & Higgins, C. (2009). Top management support of enterprise systems implementations. Journal of Information technology, 24(1), 55-80. doi.org/10.1057/jit.2008.21

Eadie, R., Perera, S., & Heaney, G. (2011). Analysis of the use of E-Procurement in the Public and Private Sectors of the UK construction Industry. Journal of Information Technology in Construction, 16, 669-686.

Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of enterprise information management. doi/10.1108/JEIM-08-2013-0065.

Grandon, E., & Pearson, J. M. (2004). E-commerce adoption: perceptions of managers/owners of small and medium sized firms in Chile. Communications of the association for information systems, 13(1), 8. https://doi.org/10.17705/1CAIS.01308

Gunasekaran, A., & Ngai, E. W. (2008). Adoption of e-procurement in Hong Kong: an empirical research. International Journal of Production Economics, 113(1), 159-175. doi.org/10.1177/002224298905300104

Gunasekaran, A., McGaughey, R. E., Ngai, E. W., & Rai, B. K. (2009). E-Procurement adoption in the Southcoast SMEs. International Journal of Production Economics, 122(1), 161-175. doi.org/10.1016/j.ijpe.2009.05.013

Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking industry. Financial innovation, 2, 1-12.

Hardy, C.A. & Williams.S.P (2005), Public E-Procurement in Action: Policies, Practices and Technologies, Towards Electronic Democracy (TED) Conference on E-Government – Electronic Democracy: The Challenge Ahead, Italy

Hassan, H., Tretiakov, A., Whiddett, D., &Adon, I. (2014). Extent of e-procurement use in SMEs: A descriptive study. Procedia-Social and Behavioral Sciences, 164, 264-270. doi.org/10.1016/j.sbspro.2014.11.076

Ibem, E. O., Aduwo, E. B., Tunji-Olayeni, P., Ayo-Vaughan, E. A., & Uwakonye, U. O. (2016). Factors influencing e-Procurement adoption in the Nigerian building industry. Construction Economics and Building, 16(4), 54-67. doi/abs/10.3316/INFORMIT.502958237398189

Ifinedo, P. (2011). An empirical analysis of factors influencing Internet/e-business technologies adoption by SMEs in Canada. International journal of information technology & decision making, 10(04), 731-766.

Ijab, M. T., Wahab, S. M. A., Salleh, M. A. M., & Bakar, A. A. (2019, December). Investigating big data analytics readiness in higher education using the technology-organisation-environment (TOE) framework. In 2019 6th International Conference on Research and Innovation in Information Systems (ICRIIS) (pp. 1-7). IEEE.

Ilhan, N., & Rahim, M. M. (2020). Understanding digital transformation of procurement through e-procurement systems implementation: Business partner relationship perspective. In Leadership, Management, and Adoption Techniques for Digital Service Innovation (pp. 182-206). IGI Global.

Ismail, W. S. W., Ali, A., & Rashid, N. M. N. N. M. (2017). Does Adoption of CAIS differentiate the SMEs Performance: Evidence in Malaysia. World Applied Sciences Journal, 35(9).

Issa, R. R., Flood, I., & Caglasin, G. (2003). A survey of e-business implementation in the US construction industry. Journal of Information Technology in Construction (ITcon), 8(2), 15-28.

Jeyaraj, A., Rottman, J. W., & Lacity, M. C. (2006). A review of the predictors, linkages, and biases in IT innovation adoption research. Journal of information technology, 21(1), 1-23.

Kaliannan, M., & Awang, H. (2010). Adoption and use of e-government services: a case study on e-procurement in Malaysia. WSEAS Transactions on Business and Economics, 7(1), 1-10.

Kamarulzaman, N. H., & Mohamed, Z. A. (2013). Application of e-procurement technologies for selecting suppliers of agro-based SMEs in Malaysia. International journal of economics and management, 7(1), 45-66.

Kapiyangoda, K. K., &Karunaratne, D. D. R. M. (2021). Influence of Supply Chain Actors in Tea Export Planning: A Sri Lankan Case Study. Colombo Journal of Multi-Disciplinary Research, 6(1).

Kasaine, C. M. (2016). Factors Influencing Implementation of E-procurement in Supermarkets in Nairobi, Kenya (Doctoral dissertation, University of Nairobi).

Khan, S. A. R., Yu, Z., Rehman Khan, S. A., & Yu, Z. (2019). Procurement. Strategic Supply Chain Management, 191-206.

Kosmol, T., Reimann, F., & Kaufmann, L. (2019). You'll never walk alone: Why we need a supply chain practice view on digital procurement. Journal of Purchasing and Supply Management, 25(4), 100553.

Kulkarni, U., Robles-Flores, J. A., & Popovič, A. (2017). Business intelligence capability: The effect of top management and the mediating roles of user participation and analytical decision making orientation. Journal of the Association for Information Systems, 18(7), 1.

Lee, H. J., Lim, H., Jolly, L. D., & Lee, J. (2009). Consumer lifestyles and adoption of high-technology products: A case of South Korea. Journal of International Consumer Marketing, 21(2), 153-167.

Li, Y. H. (2008). An empirical investigation on the determinants of e-procurement adoption in Chinese manufacturing enterprises. In 2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings (pp. 32-37). IEEE. DOI: 10.1109/ICMSE.2008.4668890

Lutfi, A. A., Idris, K. M. & Mohamad, R. (2016). The Influence of Technological, Organizational and Environmental Factors on Accounting Information System Usage among Jordanian Small and Medium-sized Enterprises. International Journal of Economics and Financial Issue, 6 (7), 240-248 . Retrieved from https://dergipark.org.tr/en/pub/ijefi/issue/32000/353067

Mangla, S. K., Kazançoğlu, Y., Yıldızbaşı, A., Öztürk, C., & Çalık, A. (2022). A conceptual framework for blockchain‐based sustainable supply chain and evaluating implementation barriers: A case of the tea supply chain. Business strategy and the environment, 31(8), 3693-3716.

Min, H., & Galle, W. P. (2003). E-purchasing: profiles of adopters and nonadopters. Industrial Marketing Management, 32(3), 227-233.

Nitharsan, N., & Francis, M. (2022). Adaptability of blockchain-based E-Procurement system in Sri Lankan construction projects.

Nziku, D., & Siwandeti, M. (2019). Factors Affecting Adoption of E-Procurement in Private Companies in Tanzania: The case of TBL Mwanza Plant. Business Education Journal, 6(1).

Oliveira, T., & Martins, M. F. (2011). Literature review of information technology adoption models at firm level. Electronic Journal of Information Systems Evaluation, 14(1), pp110-121.

Oteki, E. B. (2019). Influence of Electronic Procurement Practices on Supply Chain Performance of Sugar Processing Firms in Kenya (Doctoral dissertation, JKUAT-COHRED)

Pilkington, M. (2016). Blockchain technology: principles and applications. In Research handbook on digital transformations. Edward Elgar Publishing.

Premathilaka, K. M., & Fernando, R. L. S. (2020). Critical success factors affecting e-procurement adoption in public sector organizations in Sri Lanka.

Premkumar, G., & Ramamurthy, K. (1995). The role of inter-organizationa and organizational factors on the decision mode for adoption of inter-organizational systems. Decision sciences, 26(3), 303-336.

Premkumar, G., & Roberts, M. (1999). Adoption of new information technologies in rural small businesses. Omega, 27(4), 467-484.

Quaddus, M., & Hofmeyer, G. (2007). An investigation into the factors influencing the adoption of B2B trading exchanges in small businesses. European Journal of Information Systems, 16(3), 202-215.

Rahim, M. M., & As-Saber, S. N. (2011). E-procurement adoption process: an arduous journey for an Australian city council. International Journal of Electronic Finance, 5(2), 150-168.

Ray, D. (2016). Cloud adoption decisions: Benefitting from an integrated perspective. Electronic Journal of Information Systems Evaluation, 19(1), pp3-21.

Raymond, L. (1985). Organizational characteristics and MIS success in the context of small business. MIS quarterly, 37-52.

Rogers, E (2003).Diffusion of Innovations. 5th ed. New York: NY: Free Press.

Rogers, E. (1995), Diffusion of Innovations, 4th ed., Free Press, New York, NY.

Rotich, G.K. & Okello, B. (2015) ‘Analysis of use of e-procurement on performance of the procurement functions of County Governments in Kenya’, International Journal of Economics, Commerce and Management, Vol. 3, No. 6, pp.1381–1398.

Schoenherr, J., Littke, R., Urai, J. L., Kukla, P. A., & Rawahi, Z. (2007). Polyphase thermal evolution in the Infra-Cambrian Ara Group (South Oman Salt Basin) as deduced by maturity of solid reservoir bitumen. Organic Geochemistry, 38(8), 1293-1318.

Soares-Aguiar, A., & Palma-dos-Reis, A. (2008). Why do firms adopt e-procurement systems? Using logistic regression to empirically test a conceptual model. IEEE Transactions on Engineering Management, 55(1), 120-133.

Srai, J. S., & Lorentz, H. (2019). Developing design principles for the digitalisation of purchasing and supply management. Journal of Purchasing and Supply Management, 25(1), 78-98.

Sri Lanka Tea Board. (2015). Srilankateaboard.lk. http://www.srilankateaboard.lk/index.php/features/the-importance-of-origin

Sun, S., Hall, D. J., & Cegielski, C. G. (2020). Organizational intention to adopt big data in the B2B context: An integrated view. Industrial Marketing Management, 86, 109-121.

Swan, M. (2015). Blockchain: Blueprint for a new economy. " O'Reilly Media, Inc."

Taylor, R. (1990). Interpretation of the correlation coefficient: a basic review. Journal of Diagnostic Medical Sonography, 35-39.

Teo, T. S., Lin, S., & Lai, K. H. (2009). Adopters and non-adopters of e-procurement in Singapore: An empirical study. The International Journal of Management Science [online], 37(5), 972-987. https://doi.org/10.1016/j.omega.2008.11.001

Thai, K. V. (2009). Public Administration and Public Policy /146, International Handbook of Public Procurement, CRC press, New York. U.S.A.

Ursachi, G., Horodnic, I. A., & Zait, A. (2015). How reliable are measurement scales? External factors with indirect influence on reliability estimators. Procedia Economics and Finance, 20, 679-686.

Wang, Y. M., Wang, Y. S., & Yang, Y. F. (2010). Understanding the determinants of RFID adoption in the manufacturing industry. Technological forecasting and social change, 77(5), 803-815.

Wattegama, C. (2021). Digital economy of Sri Lanka: National goals and lessons from the South. In United Nations Conference on Trade and Development. UNCTAD/BRI PROJECT/RP15. UN (United Nations), New York, USA.

Woodside, A. G., & Biemans, W. G. (2005). Modeling innovation, manufacturing, diffusion and adoption/rejection processes. Journal of Business & Industrial Marketing, 20(7), 380-390.

Downloads

Published

2024-11-22

How to Cite

Bandara, W. A. A. M., & Athapaththu, J. C. (2024). Factors Influence on E-procurement Adoption in Tea Processing Factories in Sri Lanka. International Journal of Supply Chain and Logistics, 8(4), 1–27. https://doi.org/10.47941/ijscl.2362

Issue

Section

Articles