Antecedents and Impacts of Electronic Procurement Usage among Jordanian Large Firms

Abstract

E-procurement usage enables the organization to reduce business cost, access wider market and streamlining purchasing processes. Despite these benefits, the Ministry of Information and Communications technology in Jordan reported showed only 27.6% of the firms in Jordan use the e-procurement system, therefore the e-procurement usage among Jordanian firms still in early stage. This study employed a selfadministered questionnaire survey for data collection purpose. The research model was validated based on the responses from 221 large firms in Jordan. Making an overall 40% response rate, and were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The outcomes of this study show all technological, organizational and environmental factors used in this study were found to have influenced eprocurement usage among businesses. Furthermore, a significant positive association existed between e-procurement usage and firm performance. To conclude, this study has provided important insights to the government which could assist in designing and initiating suitable policies and programs to enhance the level of diffusion.