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Perceived Benefits from a Local Government Public Procurement Initiative: A Diffusion of Innovation Perspective
Abstract
In recent years, government organisations are expressing a growing interest in the uptake of eProcurement systems in order to achieve many of the benefits that their counterparts in the private sector have reported. These systems represent a specific instance of internet-based inter-organisational initiatives that streamline organisational purchasing processes and facilitate electronic exchange of transactions and other procurement related documents between organisations and their suppliers. Although some literature exists on the adoption of e-procurement systems within the government sector, relatively little has been focused on the outcomes of these systems particularly within the Australian local government context. Furthermore, much of the attention of the existing eProcurement literature is on understanding adoption decisions of these systems from the perspective of senior management, and few research efforts have been made to examine how employees who actually use these systems perceive the benefits arising from these systems. In addition, although the role of demographic characteristics of users is recognised in the innovation adoption and broader IS/IT adoption literatures, it is not clearly known how the demographic characteristics of employees (who interact with such systems) may influence their perceptions about eProcurement benefits. To address this gap in the literature, we analyse the views captured from sixty employees working in three large city councils located in the state of Victoria, Australia. The findings indicate that the outcomes of eProcurement systems adoption were largely seen in a positive light as the employees reported favourably about the attainment of benefits from their use of these systems. More specifically, efficiency improvement and establishing control were perceived as the two most important benefits. However, except user type, popular demographic characteristics of employees (e.g. gender, job role, working experience at councils) were not related to their perceptions of eProcurement benefits. These findings offer limited support for the views expressed in the existing innovations and IS/IT adoption literatures. The implications of these findings are discussed, and future directions of research are proposed.
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