Prescriptive Analytics in Procurement: Reducing Process Costs

2022 | International Conference on Business Informatics | Citations: 0

Authors: Sengewald, Julian; Lackes, Richard

Abstract: In obtaining low-cost goods, the indirect expenses associated with sourcing supp ... Expand

Abstract: In obtaining low-cost goods, the indirect expenses associated with sourcing suppliers can be substantial compared to the potential advantages of lower direct purchase costs. We addressed this problem as an "exploration" vs. "exploitation" trade-off. The proposed methodology uses a Bayesian technique to learn a stochastically optimal sourcing strategy from quotation data directly. We illustrate our approach using real quotation data for the procurement of electronic resistors (n=201,187). Rather than making optimal predictions, we concentrate on making optimal decisions. In doing so, we offered a significant improvement in purchase and procurement process costs. Our model is also more robust to prediction errors. Collapse

Topics: procurement management price management supply chain management logistics management procurement information system

Methods: Bayesian analysis computational algorithm simulation random forest classification machine learning

Digital Transformation of the Healthcare Supply Chain: A Clinical Safety Evaluation Model

2022 | Americas Conference on Information Systems | Citations: 0

Authors: Smith, Sean; Lane, Michael; Toleman, Mark; Shrestha, Anup

Abstract: The Healthcare Supply Chain (HSC) plays a key role in the safety and quality of ... Expand

Abstract: The Healthcare Supply Chain (HSC) plays a key role in the safety and quality of healthcare services. A growing awareness of the complexities of the HSC has highlighted the potential usefulness of digital systems to deliver efficiencies which may lead to improved clinical safety. The business benefits of digital transformation of the HSC have been identified however there has been no clear methodology proposed to the author's knowledge to measure the clinical safety benefits. This study will examine the performance of a Clinical Safety Evaluation Model (CSEM) created to provide healthcare organisations a measure of clinical safety through digital transformation of their supply chain. The CSEM uses an adaptation of the DeLone and McLean Information Success Model blended with proven clinical safety criterion within the healthcare supply chain sphere. The study will provide measures on both the effectiveness of the model and the potential for use of the CSEM in industry application to improve clinical safety. Collapse

Topics: procurement management digital transformation supply chain management digital platform procurement information system

Methods: qualitative interview personal interview design process design artifact

Theories: information systems success model

An experimental examination of credible information disclosure, perception of fairness, and intention to do business in online multi-bilateral negotiations

2022 | Electronic Markets | Citations: 0

Authors: Yu, Bo; Kersten, Gregory E.; Vahidov, Rustam

Abstract: Inter-firm negotiations are often non-discrete: they are not isolated exchange e ... Expand

Abstract: Inter-firm negotiations are often non-discrete: they are not isolated exchange episodes, but part of an ongoing process of building strategic relationships between the firms. This view posits a challenge to the design and application of negotiation mechanisms in e-markets supporting business-to-business exchanges. The assessment of the mechanisms needs to include both the impacts within each discrete exchange episode and those shaping the future of the inter-firm relationships. We argue that strategies of information revelation implemented with negotiation mechanisms can influence participants’ fairness perceptions, which can further affect business relationships. The paper examines both substantive and subjective measures in an experiment involving two multi-bilateral negotiations with distinct information disclosure strategies. The results show that the revelation of the best offer affects participants’ perceived fairness which, in turn, positively influences intention to do business. The findings have implications for both the design and use of negotiation mechanisms where inter-firm relationships are concerned. Collapse

Topics: data breach procurement management negotiation support system privacy information exchange

Methods: experiment path analysis structural equation modeling survey statistical hypothesis test

Theories: social sciences theory

Digital Transformation Initiative in a Public Sector Organization: Stakeholder Viewpoints and Responses in Ghana

2021 | HICSS | Citations: 0

Authors: Agbeko, Michael; Effah, John; Boateng, Richard

Abstract: The importance of digital transformation initiatives for contemporary organizati ... Expand

Abstract: The importance of digital transformation initiatives for contemporary organizations has been demonstrated in research and practice. However, stakeholder viewpoints and responses to such initiatives in the public sector are less understood. We draw on the stakeholder theory to empirically examine how a public sector transformation initiative is shaped by various stakeholders’ viewpoints and responses. This initiative involves an e-procurement platform implementation to transform procurement processes and activities in the developing country context of Ghana. We find that responses from the stakeholder groups influence which viewpoints are realized or not and what factors shape the realizations. The analysis demonstrates that: (1) Failure to realize stakeholder viewpoints is likely to affect benefits derived from public sector digital transformation initiatives; (2) Success of digital transformation initiative pivots around analysis of stakeholders’ responses to the outcomes of such projects; (3) Lack of appropriate technological infrastructure constrains digital transformation initiatives in the public sector. Collapse

Topics: digital transformation procurement management electronic procurement procurement information system information technology infrastructure

Methods: qualitative interview case study single case study qualitative content analysis literature study

Theories: stakeholder theory

The association between Institutional Absorptive Capacity, Electronic Procurement Assimilation and Procurement Process in Public Sector Organizations

2020 | HICSS | Citations: 1

Authors: Frimpong, John Manso; Andoh-Baidoo, Francis Kofi; Asamoah, David

Abstract: Public sector organizations face challenges with their procurement processes. El ... Expand

Abstract: Public sector organizations face challenges with their procurement processes. Electronic mode of public procurement enables governments and organizations to achieve efficient and effective tendering information processing, leading to transparency and fairness in the bidding process. However, little is known on the drivers of electronic procurement assimilation in the public sector. The study examines the influence of absorptive capacity on the assimilation of electronic procurement and subsequent effect on the procurement process in the public sector. In addition, the study explores the mediating role of electronic procurement assimilation on the relationship between institutional absorptive capacity and the procurement process. Structural equation modelling was used to analyze 306 useable data from public sector organizations in Ghana where public procurement laws demand efficient and effective procurement processes. We found support for all the four hypotheses. We offer theoretical and managerial implications. Collapse

Topics: procurement management absorptive capacity electronic procurement procurement information system

Methods: structural equation modeling partial least squares regression survey design

E-PROCUREMENT FACILITATES ADVERSARIALITY – TRUSTWORTHINESS SIGNALED IN PROCUREMENT IN AN INDUSTRIAL HIGH-TECH CLUSTER

2020 | European Conference On Information Systems | Citations: 0

Authors: Longva, Jørn

Abstract: Technologically advanced environments normally use electronic procurement syste ... Expand

Abstract: Technologically advanced environments normally use electronic procurement systems, and this paper explores their role in customer-supplier relationships in a Norwegian high-tech industrial cluster. This paper focuses on "trustworthiness", about which research has suggested some identifiable characteristics. Using how trustworthiness is signaled as a sensitizing lens, procurement practices and the utilization of ERP systems and other ICT artifacts are explored in a Norwegian high-tech industrial cluster. The findings show that in dealing with strategic suppliers, personal and informal ways of negotiating terms and requirements are dominant, while the procurement of less strategic parts and commodities is conducted via electronic procurement systems. The study finds trustworthiness-building characteristics in the ways in which buyers and strategic suppliers interact. At the same time, signals sent using e-procurement in the case of less critical procurements are generally more suited to building adversariality than trust. Collapse

Topics: procurement information system procurement management electronic procurement interorganizational relationship enterprise resource planning

Methods: qualitative interview personal interview theoretical contribution case study grounded theory

Theories: transaction cost economics

Organizational buyers’ assimilation of B2B platforms: Effects of IT-enabled service functionality

2020 | Journal of Strategic Information Systems | Citations: 0

Authors: Najmul Islam, A. K. M.; Cenfetelli, Ronald; Benbasat, Izak

Abstract: This paper investigates service functionality in the domain of B2B platform assi ... Expand

Abstract: This paper investigates service functionality in the domain of B2B platform assimilation from the buyer’s perspective. Using a customer service life cycle framework, we identified five dimensions of service functionality, namely, information search, negotiation, acquisition, ownership, and retirement. We theorize that the importance of these dimensions is contingent upon current level of B2B platform assimilation. Furthermore, building on an enabler-inhibitor perspective, we theorize that the benefits and top management support are the enablers, whereas assimilation costs, managerial complexity, and demand uncertainty are the inhibitors of a firm’s future decision to assimilate a B2B platform. Using a two-staged field survey, we tested our theory on a sample of 191 professionals. The results indicate that the importance of service functionality dimensions varies depending on the current level of service assimilation, namely, the importance of information search functionalities decreases while the importance of ownership and retirement functionalities increases as the firms move from the awareness stage to the general deployment stage. Furthermore, our results indicate that benefits and top management support enable future platform assimilation irrespective of the assimilation stage a firm is in currently. Assimilation costs were found to have negative impact on future platform assimilation among the companies who had a low level of current assimilation. However, the effect became non-significant for the companies with a higher level of current assimilation. Our paper contributes to the theory development by (i) showing that the importance of different IT mediated services is contingent upon current level of assimilation; and (ii) showing which factors retain their importance throughout the assimilation stages. We describe management implications for B2B platform owners and buyer organizations. Collapse

Topics: business-to-business information storage and retrieval system top management support electronic market customer service

Methods: survey survey design theory development partial least squares regression chi squared test

The effects of e-business processes in supply chain operations: Process component and value creation mechanisms

2020 | International Journal of Information Management | Citations: 0

Authors: Zhu, Zhen; Zhao, Jing; Bush, Ashley A.

Abstract: Using a process component lens, this paper decomposes an e-business process into ... Expand

Abstract: Using a process component lens, this paper decomposes an e-business process into technical, relational, and business components. We then draw on resource orchestration theory to identify two managerial actions, resources structuring and capabilities leveraging in using e-business process components, to explain how these three components work together to improve competitive performance in supply chain operations. Two interesting insights emerge from our empirical research corresponds to value creation mechanisms. First, we identify the critical three portfolio effects to promote platform architecture flexibility and partner engagement to develop e-business operations capabilities (EBOCs) in three major e-business processes. Second, we reveal the transformation effect of EBOCs in different e-business processes in obtaining competitive performance. The notion of portfolio and transformation mechanisms of e-business process components offers theoretical and practical implications for developing successful digital supply chain platform. Collapse

Topics: electronic business competitive advantage supply chain management value creation IS value

Methods: survey structural equation modeling chi squared test data transformation theoretical contribution

Determinants and barriers of e-procurement: A European comparison of public sector experiences

2018 | HICSS | Citations: 0

Authors: Gascó, Mila; Cucciniello, Maria; Nasi, Greta; Yuan, Qianli

Abstract: Despite recent studies on determinants of adoption and diffusion of e-procuremen ... Expand

Abstract: Despite recent studies on determinants of adoption and diffusion of e-procurement, the existing literature is still scant on how different variables affect eprocurement adoption, diffusion and upscaling by type of adopter. Using qualitative data from interviews, this paper aims at contributing to fill this gap by examining how outer and inner variables influence the adoption and upscaling of e-procurement in two European regions that can be considered as innovators (Valencia in Spain and Lombardy in Italy). Our findings show that 1) the role of inner factors is clearer than that of outer ones in adoption processes, 2) in particular, organizational (mainly slack resources in both cases) and individual determinants seem to be the most important inner factors, 3) change management strategies and activities have a key role in upscaling processes, and 4) the internal organizational context and the type of technological innovation may act as moderators/mediators of the effects. Collapse

Topics: electronic procurement innovation management digital innovation strategic management procurement information system

Methods: qualitative interview case study literature study cross sectional research multiple case study

On the Longitudinal Effects of IT Use on Firm-Level Employment

2016 | Information Systems Research | Citations: 0

Authors: Atasoy, Hilal; Banker, Rajiv D.; Pavlou, Paul A.

Abstract: The effect of information technology (IT) on employment is a crucial question in ... Expand

Abstract: The effect of information technology (IT) on employment is a crucial question in today’s economy given the increased digitization of work. To analyze the relationship between IT use and firm-level employment, we examine the longitudinal role of IT use in the firm’s total number of employees. Our data set comes from the emerging economy of Turkey, and it represents firms of different sizes and industries. The data capture the firm’s use of enterprise applications, such as enterprise resource planning and customer relationship management, and the use of Web applications, such as e-banking and e-government. Our empirical specifications exploit both within-firm and between-firm variations to show the positive effect of IT use on firm-level employment, which varies across IT applications over time. Interestingly, we find that the effects of the use of enterprise applications materialize after two years, whereas the effects of the use of Web applications are realized in the current year. We also examine whether the role of IT use in firm-level employment are moderated by firm size, average wage rate, and industry technology intensity. The long-term effects of the use of enterprise applications on firm-level employment are more pronounced in larger firms, with higher average wages, and in high-technology industries. The results are robust to alternative specifications and tests that address causality and endogeneity concerns. Implications for research, practice, and public policy are discussed. Collapse

Topics: information system use enterprise information system web application global navigation satellite system enterprise resource planning

Methods: survey longitudinal research data transformation principal component analysis robustness check