Factors affecting adoption of e-procurement with electronic orders integrated systems by enterprises: evidence from World Bank survey of Saudi Arabia

Abstract

Purpose The aim of the study is to investigate the factors that influence the adoption of e-procurement by businesses in the specific context of Saudi Arabia. Design/methodology/approach This study uses the firm-level data of World Bank Enterprise Surveys 2022 of Saudi Arabia covering 1,573 enterprises. The association between firm characteristics and the adoption of e-procurement by enterprises has been examined through the chi-square test. Further, a logistic regression model has been fitted to estimate the factors affecting adoption of e-procurement. Findings About 10 % of the enterprises reported that they adopted e-procurement as the establishment’s main technology to manage procurement and supplier chain by enterprises. A statistically significant association has been found between e-procurement vis-a-vis firm characteristics. Moreover, logistic regression analysis indicated that large and innovative enterprises, with digital presence in terms of website, holding a bank account and access to credit are more likely to adopt e-procurement. Practical implications This study offers valuable insights into the factors that influence the adoption of e-procurement by businesses, which helps the supply chain manager to develop and operationalize the digital supply chain through e-procurement in the context of Saudi Arabia. Originality/value This paper can provide significant insights for promoters and supply chain managers in Saudi Arabia, who are now focusing on the digital transformation of businesses. By understanding the factors affecting e-procurement by firms, they can smooth the supply chain.