Does National Culture Affect E-Procurement Implementations?

Abstract

In the past decade, electronic mechanisms have started to overtake the conventional methods of procurement for both governments and enterprises because of the cost and time saving effects of e-procurement. Economic theory suggests that the success of e-procurement depends on the number of bidders who participate in procurement auctions. In this paper, the authors investigate the cultural factors that affect the usage and perceived acceptance of e-procurement process. This study identifies cultural barriers for adoption of e-procurement, which is essential for the success of e-procurement systems. The authors analyze extensive Eurostat datasets using Panel Data regression methods. Based on the empirical findings of the paper, the authors develop the Unified E-procurement Model (UEM). This model describes the cultural perspective for a successful e-procurement system by combining cultural dimensions, the Technology Acceptance Model (TAM), and the Competition in Auctions Theory (CAT). The UEM exposes the working dynamics of cultural factors that affect participation to online procurement auctions and presents total savings achieved through higher participation of enterprises. The empirical findings of the paper have practical implications and provide a road map for an efficient e-procurement system implementation.