THE ANALYTICAL STUDY ON MICRO, SMALL, AND MEDIUM-SIZED (MSME) BUSINESSES USING E-PROCUREMENT
K B Sudarshan
Management
September 2023
From the procure-to-pay (P2P) cycle to supply chain management to strategic and financial planning, e-procurement software provides visibility and control over all procurement operations. Software as a Service, or SaaS, solutions are used by many of the most prominent E-Procurement platforms. They offer a centralised, cloud-based software platform that links stakeholders, applications, and physical sites for improved communication, collaboration, and efficiency. While software automation used to be the domain of larger corporations, E-Procurement software is now used by both small and large corporations. While every firm is different, E-Procurement is typically deployed as part of a wider business process management strategy. This study provides a methodology to investigate the relationship between e-procurement and three enabling elements in more detail (top management support, IT obstacles and strategic purchasing). Because top management often owns the company and is more actively involved in investment choices, top management support is often crucial in MSMEs. Non-response bias and common-method bias are two of the most prominent potential risks to survey research. We compared company size by number of workers and operational income in the population with the participating sample to determine non-response bias. In both of these areas, the results of the analyses of variance (ANOVA) revealed that there were no significant differences between the sample and the population. We used Harman's single-factor test to check if a single factor could explain the majority of the variance. We can say that e-procurement has garnered a lot of attention in the literature; it hasn't been studied in depth in the context of MSMEs. The purpose of this study was to address a gap in the literature by empirically testing a model for the growth of e-procurement in MSMEs, which comprised top management support for IT, IT obstructions, and strategic purchasing. Furthermore, the concept links e-procurement to both procurement and company success.
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