Exploring the status of e-procurement : a case of the construction industry in Sri Lanka

Abstract

Information Technology has radically changed the way most businesses operate in recent past. Certain inefficiencies of traditional procurement processes and cycles have been eliminated through the introduction of network based electronic procurement systems. Thus, the emerging concept of e-procurement is currently being applied in almost all types of procurement. Construction industry is no exception, which has attempted to adopt these latest technologies in its procurement process. Despite the wealth of merits of e-procurement, the practice of e-procurement in Sri Lankan construction industry is still in its infancy. Thus, this study aims to investigate the current status of e-procurement including the barriers and drivers to e-procurement in Sri Lanka. Literature review identifies an extensive range of aspects with regard to e-procurement both locally and globally. A questionnaire survey was used as the mode of data collection and fifty professionals from both private and public sector involved in construction were surveyed to ascertain their views on e-procurement. Findings of the study revealed that reduction of paper work and administrative and process cost saving were the key drivers whereas lack of policies, expertise, regulatory bodies and legal challenges were the key barriers for e-procurement in Sri Lanka. These results are confined to certain limitations where construction professionals selected were from the highest ranking construction consultancy and contractor organizations within the Colombo Metropolitan region. The study enabled to investigate the current status of the e-procurement including drives and barriers to e-procurement and highlighted barriers to overcome for successful implementation of e-procurement within Sri Lankan construction industry.