Business-to-business e-procurement: success factors and challenges to implementation

Purpose - The paper seeks to pursue the understanding of current business-to-business e-procurement practices by describing the success factors and challenges to its implementation in the corporate setting. Design/methodology/approach - Members of the Institute for Supply Management and the Council of Logistics Management were asked to respond to a survey questionnaire. Factor analysis was used to analyze data from valid responses received from 185 firms. Findings - Factor analysis resulted in three e-procurement success factors (SF):supplier and contract management; end-user behavior and e-procurement business processes; and information and e-procurement infrastructure. Three challenge-to-implementation factors (CIF) also emerged: lack of system integration and standardization issues; immaturity of e-procurement-based market services and end-user resistance; and maverick buying and difficulty in integrating e-commerce with other systems. Research limitations/implications - A representative sampling design should be used in the future to be able to make claims for generalizable results. Practical implications - E-procurement is a very important initiative with significant cost savings potential for firms. This study's findings can guide various stages of corporate implementation efforts. Originality/value - This study fulfills the need for solid empirical findings on this very important topic that has a direct impact on a firm's bottom line. E-procurement is still in the early stages of marketplace deployment and guidance is still needed on how to do it right.