Effect of E-Procurement on Strategic Sourcing in Multinational Organizations in Pakistan
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Date
2022-02-15
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UMT.Lahore
Abstract
The increasing pressure of competitiveness is affecting the sourcing practices of not
only the business but also the multinational corporations. The practitioners, as well as
the thinkers, are emphasizing upon proposing and assessing new methods of sourcing
to sustain through the rein of competitiveness. It is evident from the relevant literature
that the multinational corporations are at the cutting edge of changing their strategic
and operational sourcing practices to keep themselves ahead of their competitors.
Information and communication technology (ICT), in this regard, is reported among the
most adopted interventions by the organizations, especially the multinational
corporations. The technology interventions are giving new means to the classic
organizational practices, such as transforming the procurement process to e procurement. Such transitions in the strategic sourcing practices of multinationals bring
intrinsic and extrinsic effects as they not only call for the change in internal
organizational processes, but also at the end of their suppliers and vendors. This study
focuses on the effects of e-procurement on the strategic sourcing in the multinational
corporations operating in Pakistan. This study follows the positivist philosophical
guidelines and uses the deductive method to identify the effects of e-procurement on
strategic sourcing. The instrument adopted from the work of Chipiro (2009) was
adapted and used for collecting primary data. The self-administered questionnaire was
sent to 500 supply chain management professionals working in the multinational
corporations in Pakistan. 236 responses were received. 17 responses were discarded
due to incomplete responses during the screening process, whereas, 219 responses were
finally analyzed in SPSS. Correlation and regression analysis was performed to test the
hypotheses. The results show a positive moderate to strong correlation between e procurement and strategic sourcing. It shows that a unit change in e-procurement results
in 0.502 percent change in strategic sourcing which is moderate effect. The results,
interpretation, discussion, conclusions, directions for future research and
recommendations are also reported after the statistical analysis.