E-procurement implementation: a case of Malaysia government

Purpose - Many countries worldwide have identified e-procurement as a priority of e-government agenda and have implemented, or are in the process of implementing, e-procurement systems. The purpose of this paper is to understand the challenges of e-procurement implementation in the government sector and efforts taken to overcome the challenges, using a Malaysia government case. Design/methodology/approach - This study adopts a qualitative case study approach of an e-procurement project, which is one of Malaysia's e-government initiatives. Data were collected using a triangulation approach that involved semi-structured interviews, document reviews and observation. Findings - The theoretical framework draws on Croom and Brandon-Jones and was further developed during data analysis. Findings show that challenges of e-procurement implementation in government sector are not only related to software integration, data management and roll-out strategy, but also to legal and administration procedures, information technology (IT) infrastructure, outsourcing contract and IT skills. Findings show the importance of creating an IT facilities centre in rural areas and working closely with a third-party vendor for users' training and skills development. Research limitations/implications - The findings extend key issues of e-procurement implementation using a case study in the Malaysia government. The paper highlights the need to understand challenges and limitations faced by a developing countries such as Malaysia in implementing e-government projects. The paper provides a basis for further thought and analysis on important issues such as lack of IT infrastructure and skills, as well as high dependency on third-party developers that needs to be overcome in order to gain the impact of an e-procurement system. Practical implications - This paper has explored implementation issues of e-procurement in government sectors, particularly in developing countries, and hence provides guidelines for future implementation strategy for system developers, government officials and ministry. Originality/value - Only limited studies examine the implementation issues of e-procurement in the government sector, especially in developing countries. While current studies focus more on the readiness of implementing e-procurement, this study posits to understand the challenges faced by a developing country in e-procurement implementation.