Factors Influencing the Attitude of Stakeholders Towards the Adoption of E-Procurement, A Special Reference to Eastern Provincial Council Organizations in Sri Lanka.
Authors: Uthayakumar Retnam , Partheepan Sooriya kumar 
Published: November 2024

This study investigated the factors influencing stakeholders’ attitudes towards e-procurement adoption in the Eastern Provincial Council Organizations of Sri Lanka. The research questions and objectives were formulated to find out the extent of the relative influence of top-level executives’ support, employees’ ICT (Information and Communication Technology) competency, and suppliers’ ICT readiness, which were identified as the three major factors from the literature review, on the overall stakeholders’ attitudes towards the adoption of e-procurement replacing the traditional manual system. The study used a cross-sectional study design, and all variables were measured with the data collected through standard attitudinal questionnaires from a sample of three distinct study populations: Top-level executive officers, Employees involved in procurement, and Registered suppliers attached to more than 40 organizations under the purview of the Eastern Provincial Council. The total number of participants in the study was 450. They were selected from the three groups in an equal amount of 150. The data collected were analyzed using multiple regression analysis with the PSPP. The unit of analysis was a group comprised of three types of individual stakeholders (a top-level executive, a procurement employee, and a registered supplier).

The study found that top-level executives’ support, employees’ ICT competency, and suppliers’ ICT readiness significantly and positively influence stakeholders’ attitudes towards e-procurement adoption. The results of multi regression analysis revealed that the Top Level Executives’ Support (TES) had the strongest significant effect on the overall Stakeholders’ Attitude towards the E-Procurement system, with a standardized beta of 0.36. The Employees’ ICT Competencies (EIC) also had a significant effect on the overall Stakeholders’ Attitude towards the E-Procurement system, with a standardized beta of 0.31. Suppliers’ ICT Readiness (SIR) too had a significant effect on the Stakeholders’ Attitude towards the E-Procurement system, with a standardized beta of 0.29. As indicated by the R2 value of the model summary, these three factors have jointly explained a considerable percentage of variations (sixty-four) in the overall attitudes of stakeholders towards adopting e-procurement. Based on these findings, the study recommends that the Eastern Provincial Council Organizations focus on conducting ICT training programs to enhance employees’ ICT competency and collaborate with suppliers to improve their ICT readiness. Additionally, the support of top-level executives is crucial in providing the necessary resources and leadership for the successful adoption of e-procurement. This study contributes to the existing body of knowledge in the field of e-procurement adoption and guiding policy-making with a piece of original empirical evidence obtained by the researchers from the study population among the stakeholders of the Eastern Provincial Council, Sri Lanka, which is a large-scale public entity in the country. The model used in this study has explained only 64% of the variations in the stakeholders’ attitude, leaving remaining 36% un explained. Future researchers can add more factors to this model by considering the perception of the many more groups of stakeholders on the availability of infrastructure, government support, sustainability necessities, and so on.