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Developing Internet Online Procurement Frameworks for Construction Firms

Author

Listed:
  • Rafikullah Deraman

    (Intelligence and Automation in Construction Fujian Province Higher-Educational Engineering Research Centre, College of Civil Engineering, Huaqiao University, Xiamen 361021, China
    Department of Construction Management, Universiti Tun Hussein Onn Malaysia, Parit Raja 86400, Batu Pahat Johor, Malaysia)

  • Chen Wang

    (Intelligence and Automation in Construction Fujian Province Higher-Educational Engineering Research Centre, College of Civil Engineering, Huaqiao University, Xiamen 361021, China)

  • Jeffrey Boon Hui Yap

    (Department of Surveying, Lee Kong Chian Faculty of Engineering and Science, Universiti Tunku Abdul Rahman (UTAR), Kajang 43000, Selangor, Malaysia)

  • Heng Li

    (Chair Professor, Department of Building and Real Estate, Faculty of Construction and Environment, the Hong Kong Polytechnic University, 999077, Hong Kong)

  • Faizul Azli Mohd-Rahim

    (Faculty of Built Environment, University of Malaya, Kuala Lumpur 50603, Malaysia)

Abstract

Electronic purchasing or e-procurement saves millions of dollars yearly in transaction costs. E-procurement helps to cut down the supplier base, promotes paperless transactions, and increases transparency and accountability in the procurement process. Nonetheless, studies report that around 80% of e-procurement initiatives have met with failure and failed to achieve the desired results. Although studies to better understand the Critical Success Factors (CSFs) of e-procurement implementation involving various industries have been on the rise, little is known about architecture engineering and construction (AEC) practices, which has led to limited development of pragmatic frameworks to uncover the factors. Thus, this study aims to identify those CSFs (predicting variables) which significantly contribute to e-procurement implementation success in the construction sector and to put forward for better implementation. Results from multiple regression analysis revealed five factors to be statistically significant predictors of success. Three factors were determined to be predictors of user satisfaction. Finally, internet online procurement frameworks were developed for the success of e-procurement implementation in the construction sector.

Suggested Citation

  • Rafikullah Deraman & Chen Wang & Jeffrey Boon Hui Yap & Heng Li & Faizul Azli Mohd-Rahim, 2019. "Developing Internet Online Procurement Frameworks for Construction Firms," Future Internet, MDPI, vol. 11(6), pages 1-22, June.
    • Handle: RePEc:gam:jftint:v:11:y:2019:i:6:p:136-:d:241546
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    References listed on IDEAS

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    1. Toktaş-Palut, Peral & Baylav, Ecem & Teoman, Seyhan & Altunbey, Mustafa, 2014. "The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 158(C), pages 77-90.
    2. Davila, Antonio & Gupta, Mahendra & Palmer, Richard J., 2002. "Moving Procurement Systems to the Internet: The Adoption and Use of E-Procurement Technology Models," Research Papers 1742, Stanford University, Graduate School of Business.
    3. Moath Al-Yahya & Martin Skitmore & Adrian Bridge & Madhav P. Nepal & David Cattell, 2018. "E-tendering readiness in construction: an a priori model," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 11(5), pages 608-638.
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