Role of Organisational Factors on E-Procurement Adoption Decisions by Medium Scale Industries in Tamilnadu

Procurement is a largely data-driven function. It needs real-time visibility and an easy way of maintaining and managing a large volume of procurement data. Hence it is necessary to have a real-time procurement system (e-procurement). So, it is essential for any organisation to adopt e-procurement. There are many factors that affect the decisions of adoption of e-procurement. One such factor is organisational factors. This research empirically tests the role of organisational factors on e-procurement adoption decisions. Empirical survey of 432 samples was collected from the production executives of medium scale industries in the Tamilnadu using structured questionnaire. K-mean cluster analysis was performed to segment the medium scale industries into three groups: High, Moderate and Low influence of organisational factors on adoption decisions by industries. Among the organisational factors considered for this study, top management support plays a vital role in adoption of e-procurement. Results indicate that there is a moderate influence of organisational factors on adoption decisions by medium scale industries.