Business‐to‐business e‐procurement: success factors and challenges to implementation

Purpose The paper seeks to pursue the understanding of current business‐to‐business e‐procurement practices by describing the success factors and challenges to its implementation in the corporate setting. Design/methodology/approach Members of the Institute for Supply Management and the Council of Logistics Management were asked to respond to a survey questionnaire. Factor analysis was used to analyze data from valid responses received from 185 firms. Findings Factor analysis resulted in three e‐procurement success factors (SF):supplier and contract management; end‐user behavior and e‐procurement business processes; and information and e‐procurement infrastructure. Three challenge‐to‐implementation factors (CIF) also emerged: lack of system integration and standardization issues; immaturity of e‐procurement‐based market services and end‐user resistance; and maverick buying and difficulty in integrating e‐commerce with other systems. Research limitations/implications A representative sampling design should be used in the future to be able to make claims for generalizable results. Practical implications E‐procurement is a very important initiative with significant cost savings potential for firms. This study's findings can guide various stages of corporate implementation efforts. Originality/value This study fulfills the need for solid empirical findings on this very important topic that has a direct impact on a firm's bottom line. E‐procurement is still in the early stages of marketplace deployment and guidance is still needed on how to do it right.