E-procurement system adoption in local governments: the role of procurement complexity and organizational structure

ABSTRACT

The article examines how local governments’ procurement complexity and structure interact to influence e-procurement adoption. Drawing on the survey data of over 400 cities, we find that a centralized structure enhances the likelihood that local governments adopt an e-procurement system to cope with the increasing procurement complexity; while governments with a coordinated structure are less likely to adopt e-procurement as they can rely on the intra-organizational collaboration and information-sharing embedded in the structure to accommodate complex procurements. The findings shed insights on how local governments with different structures can best deal with complex managerial activities and facilitate e-procurement adoption.

KEYWORDS:

• E-procurement adoption
• organizational structure
• centralization
• local government
• public procurement

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. There are 30 cities in our original data where two or more respondents have reported different answers to this survey item. To resolve this situation, we have either checked these cities’ official websites or directly contacted their finance/purchase department to further confirm whether these cities have adopted the e-procurement system.

Additional information

Funding

This research was funded, in part, with a grant from the V.K. Rasmussen Foundation.

Notes on contributors

Yifan Chen

Yifan Chen is a doctoral student in the School of Public Affairs at Arizona State University. She is also affiliated with the Center for Organization Research and Design (CORD). Her research interests primarily lie in public administration and public management. She is particularly interested in topics concerned with local governments, organizational behaviours, policy implementation and e-government.

Stuart Bretschneider

Stuart Bretschneider is a Foundation Professor of Organization Design and Public Administration at Arizona State University’s School of Public Affairs. Currently, His research has focused on how public organizations make use of information technology and the effects of those technologies on public organizations; how public organizations employ forecasting technology and organize to carry out forecasting activities; and how sector differences affect administrative processes. He has also worked on numerous funded projects associated with the evaluation of public policy in the energy, environment and technology areas. His current research is focused on how social media technology effects public organizations management processes.

Justin M. Stritch

Justin M. Stritch is interested in the management and performance of public and non-profit organizations. His most recent projects have examined how formal policies interact with managerial biases to affect decision outcomes, the behavioural consequences of public service and prosocial motivations, and the relationship between personnel instability and organizational performance. His research has been published in the Journal of Public Administration Research and Theory, International Public Management Journal, and Public Administration.

Nicole Darnall

Nicole Darnall is an associate dean and professor of management and public policy in ASU’s School of Sustainability. Her research investigates non-regulatory governance approaches (e.g., voluntary programs, strategic alliances, certifications, and information-based initiatives) to determine whether the absence of state coercion, combined with appropriate incentives, can encourage organizations and individuals to be more sustainable. Her research has been funded by the National Science Foundation, the European Commission, the Economic and Social Research Council (UK), the Social Science Research Council, the Organisation for Economic Co-operation and Development, and the Global Consortium for Sustainability Outcomes.

Lily Hsueh

Lily Hsueh is an assistant professor of Public Policy and Economics at the School of Public Affairs at the Arizona State University. Hsueh’s research centres on how economics and politics interact, and how markets, institutions, governments, businesses, and other stakeholders play mediating roles in determining policy effectiveness, shaping the policy process, and affecting policy outcomes. Her most recent projects have examined the emergence, evolution, and efficacy of alternative governance systems (i.e., voluntary governance or market-based governance) across different policy issue areas.