Evaluating the firm's likelihood to adopt an e-procurement system

Abstract

Towards identifying the factors that foster electronic procurement systems adoption, we reviewed the literature and developed a model that explains electronic-procurement systems (EPS) adoption, considering the technology-organization-environment framework as well as the institutional theory. This model was tested with data collected from the 2500 largest companies operating in Portugal. Based on the t-test for equality of means we found evidence that EPS adoption is positively and significantly associated to (1) firm size; (2) technology competence; (3) the perception companies have about the EPS success of their competitors; (4) the extent of adoption among competitors; and (5) the trading partner readiness to perform electronic transactions. The logistic regression supplied further evidence that technology competence, firm size, extent of adoption among competitors and trading partner readiness provide a reasonable estimate for each firm's likelihood to adopt EPS. We also found evidence that firms which main activity is commerce are more likely to adopt EPSs than firms operating on manufacturing or services industries.