A framework to assist SMEs in implementing e-procurement applications

• Main Author: Li, Xinyue
• Published: University of Liverpool 2010
• Subjects: 338.6
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.533979

The importance of small and medium-sized enterprises (SMEs) to the economy is widely accepted. In addition to this, their characteristics of flexibility, lower costs, specialist products, responsiveness, innovation, localisation and high quality of services have been widely acknowledged. Nowadays, "Electronic procurement (e-procurement) has a far greater potential for cost savings and business improvement than online retailing or enterprise resource planning systems (ERP), and will permanently and fundamentally reform the way we do business in the future" (Neef, 2001). However, the adoption of e-procurement in SMEs is far behind their counterparts - the large corporations. As a result, it is essential to assist SMEs with the adoption of e-procurement to reach their full potential. In order to improve e-procurement adoptions in SMEs, several obstacles have been identified from the SME perspective, including limited expertise in procurement improvements and supply chain management, limited resources (e.g. skilled personnel, financial and technical capabilities, etc.), less business channels and opportunities, and lack of strategic frameworks for e-procurement implementations. In this respect, when SMEs attempt to deploy e-procurement technologies, it is fundamental for them to obtain adequate and effective external support from both their supply chain partners (i.e. buyers and suppliers) and intermediate organisations (e.g. governments, consultant companies, distributors, wholesalers, retailers, banks, academic institutes, etc.). In this research, case study method is utilised on the basis of qualitative research. Four case studies are deeply investigated. In the end, a holistic framework is established with a new way of thinking about how SMEs can obtain effective external support for efficient implementation of e-procurement applications across their relevant supply chains. To implement the framework, a new approach is applied and includes the identification of key players, their characters, roles, responsibilities required and relationships fonned based upon e-procurement projects. Meanwhile, the challenges have been identified when SMEs fonn relevant collaboration networks upon related eprocurement projects.