Three Different Benefits of B2B e-Procurement Systems from Suppliers’ Viewpoints


Generally, large buyers propose the adoption of inter-organizational systems such as B2B (business-to-business) e-procurement systems, and many of their suppliers accept this proposal. What kind of benefits do suppliers expect before and realize after the implementation of such a system? In this study, we consider three types of benefits of the e-procurement systems from the suppliers’ viewpoints: (1) operational efficiency, (2) relational advantage, and (3) strategic gains. In brief, operational efficiency refers to benefits of companies’ daily operations, whereas relational advantage concerns the benefits pertaining to companies’ relationships with their trading partners. These two benefits lead to long-term benefits of strategic gains. Using these three types of benefits, we investigate suppliers’ expectations from the adoption of B2B e-procurement systems. We also examine suppliers’ realized benefits resulting from the use of B2B e-procurement systems. In this regard, we conducted a questionnaire survey of raw material or component suppliers in the electrical and electronics industry of Southeast Asia and analyzed the data using PLS (partial least squares) models. As far as our knowledge goes, our study will be the first to attempt to distinguish three types of benefits derived from the e-procurement systems and analyze the realization processes of the different benefits by using data from a sample of a questionnaire survey.

IS benefits, operational efficiency, relational advantage, buyer-supplier relationship, e-procurement, inter-organizational system, partial least squares model

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Kishore Sengupta

Luk N. Van Wassenhove