E-procurement in small and medium sized enterprises; facilitators, obstacles and effect on performance

Abstract

Purpose The purpose of this paper is to analyze e-procurement in small and medium-sized enterprises (SMEs) and its relationship with top management support, IT obstacles and strategic purchasing and the effect of e-procurement on performance (procurement performance and business performance). Design/methodology/approach The hypotheses were tested using a sample of 199 managers from SMEs in manufacturing. Findings The results indicated a significant relationship between e-procurement in SMEs and top management support, IT obstacles and strategic purchasing. Similarly, the authors found a positive relationship between e-procurement and procurement process performance and business performance. Practical implications The findings stress to SME managers, the need to pay attention to top management support, IT obstacles and strategic purchasing when implementing e-procurement. Similarly, it provides evidence of the benefits of e-procurement on procurement process performance and business performance. Originality/value This study fills a gap in the literature regarding e-procurement in SMEs and its impact on performance. SMEs constitute a significant part of today’s economies and e-procurement can significantly impact the performance of these organizations.