Impact of E-Innovation on Corporate Procurement Control: Electronic Marketplaces and Broad Spectrum Changes

Abstract

This research addresses the very important question of the impact of e-innovation, namely, Web-based global electronic procurement systems and marketplace on corporate governance in relation to organizational purchasing — the organizational structures and processes for procurement control. This is undertaken through an action research case study of the failures and successes of competitor global organizations cooperatively establishing and utilizing a global electronic marketplace. Specifically, the research investigates how electronic procurement contributes to the adaptation and evolution of control structures — from highly structured, bureaucrati,c and rigid to flexible, adaptable, free flowing, and profitable, and these can result in substantial reductions in transaction costs.