Although there are many possible benefits anecdotal evidence shows that many initiatives and IT-implementations in the procurement domain do not deliver the suspected benefits, see for example Adamson (2001) and Pan, Pan, and Flynn (2004). This paper searches an answer, based on empirical evidence, to the question: “Does the implementation of e-procurement (IT for procurement) positively affect the performance of buyer-supplier interaction?”
Key Terms in this Chapter
Direct Goods: Direct goods and services are components and raw materials, which are used in the manufacturing process of a finished product (Lamming, 1995).
E-Procurement Systems: the application of a span of digital technologies, like electronic data interchange (EDI) and Internet technologies to enable exchanging partners smoothing and expanding the front-end and back-office integration of contracting, service, transportation, and payment of the products and services through processes, decisions, and transactions (Anderson, Juul, Korzen-Bohr, & Pederson, 2003).
Capability Maturity Model: A model to measure, monitor and evaluate the professional development and engineering of software and related domains such as IT-governance, project management, and people management (Peppard & Ward, 1999).
Indirect Goods: Indirect procurement relates to products and services for maintenance, repair, and operations and focuses on products and services that are neither part of the end product nor resold directly (Zenz & Thompson, 1994).
IS/IT Maturity: The state of software systems and strategy of being fully planned and developed.
Procurement: Procurement combines the functions of purchasing, inventory control, traffic and transportation, receiving and inspection, storekeeping, and salvage and disposal operations (NIGP, 1996) of both direct and indirect goods.