A conceptual model of factors affecting e-procurement usage among Jordanian firms

Abstract

E-procurement is an organizational application of IT used in setting up agreements, facilitating the
Business to Business (B2B) procuring transactions for goods and services, and requesting price
quotations. This study explains a plan examining the organizational level e-procurement practice
from two perspectives- information and transaction. This study also investigates the TOE
determinants that influence e-procurement applications in Jordanian firms and the financial
performance of such applications. Even though e-procurement offers significant advantages,
Jordanian firms with e-procurement capability are not applying e-procurement for a substantial
percentage of their transactions. Using the Technology, Organization, and Environment (TOE)
framework, the Diffusion of Innovations (DOI) theory, and the Resource-based view (RBV)
theory, an integrated model is formed. The e-procurement application is assumed to be affected by
the technological context (relative advantage, compatibility, and complexity), organizational
context (organizational readiness, top management support and information system committee),
and environmental context (competition pressure and rules and regulations).