Structural equation modeling for analyzing the barriers and benefits of e-procurement

Abstract

We perform an empirical study to analyze whether it would be beneficial for a company to switch from traditional procurement system to e-procurement system. For this purpose, we determine the main barriers and benefits of e-procurement systems, and using Structural Equation Modeling, we analyze the effects of the barriers and benefits on the e-procurement adoption decision. The results denote that barriers (benefits) of e-procurement systems have negative (positive) effect on the adoption decision. We also find that the effect of the benefits is higher than that of the barriers, indicating that it would be beneficial for the company to adopt the e-procurement system.