Assimilation of public procurement innovation : an empirical analysis in light of transaction cost theory

Vaidya, Kishor, Sajeev, A. S. M., Johnston, Judy, & Cox, Michael A. (2008) Assimilation of public procurement innovation : an empirical analysis in light of transaction cost theory. In Annual Conference of International Purchasing and Supply Education and Research Association, 9-12 March 2008, Perth, Western Australia.

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As part of large scale survey research, this study examines the notion of assimilation of public procurement innovation (e-procurement) and proposes a conceptual model that may facilitate a greater understanding of how organizations can effectively manage the process of e-procurement assimilation in the light of transaction cost theory. A pilot study with over 40 procurement professionals in the Australian public sector was conducted to refine the survey instrument, which was initially developed through an extensive literature review. A survey endorsed by various Australian public sector agencies revealed significant relationships between the transactional cost antecedents (independent variables) and the e-procurement assimilation.

Structural Equation Modeling results suggest that while no support was found for the negative relationship between Perceived Increase in Transaction Costs and the e-procurement assimilation, only partial support was found for the assocation beween transaction uncertainties and e-procurement assimilation. The study also found that there was a positive association between transaction frequency and the dependent variable. The understanding of the key antecedents of e-procurement assimilation in the light of transaction cost theory will help put practioners in a better position to formulate and implement appropriate strategies to cope with the challenges of their e-procurement implementations.

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ID Code: 20864
Item Type: Conference Paper
Refereed: No
Additional URLs:
Keywords: Structural Modelling, Procurement, Purchasing, Transation Cost
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Logistics and Supply Chain Management (150309)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Advertising, Marketing & Public Relations
Copyright Owner: Copyright 2008 [please consult the authors]
Deposited On: 02 Jun 2009 22:47
Last Modified: 10 Aug 2011 18:01

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