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Electronic Procurement: A Structured Literature

Review and Directions for Future Research

Article in International Journal of Procurement Management · January 2007

DOI: 10.1504/IJPM.2007.015353

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 Electronic Procurement:
A Structured Literature Review and Directions for Future Research

Tobias Schoenherr

V. M. Rao Tummala

Citation:
Schoenherr, Tobias, and V.M. Rao Tummala. “Electronic Procurement: A
Structured Literature Review and Directions for Future Research,”
International Journal of Procurement Management, Vol. 1, No. 1/2, 2007,
pp. 8-37.

1
 Electronic Procurement:
A Structured Literature Review and Directions for Future Research

ABSTRACT

The practice of electronic procurement has gained popularity over the last ten

years, and so has the research on this emerging area. While first reports in the 1990s

focused on general descriptions and best practices, more recent studies have dealt with

specific and refined applications of this approach. Since some of the early electronic

procurement technologies are maturing, while new ones are appearing constantly, a

structured literature review is warranted. As such, this paper reviews 157 refereed

journal articles dealing with electronic procurement, and examines them along eight key

dimensions. Based on the insights gained, directions for future research are suggested.

Keywords: Electronic procurement, literature review

Acknowledgements: The authors appreciate the feedback of an anonymous reviewer,

whose suggestions have improved an earlier version of this paper.

1. INTRODUCTION

Electronic procurement (EP) is frequently defined as the sourcing of goods or

services via electronic means, usually through the Internet. Precursors of electronic

procurement can be seen as early as the 1980s, with the evolution of Material

Requirements Planning (MRP) systems to Manufacturing Resource Planning (MRP II)

2
and then to Enterprise Resource Planning (ERP) systems in the mid 1990s. Moreover,

electronic data interchange (EDI) can also be regarded as a form of electronic

procurement.

Electronic procurement systems experienced a diffusion in the late 1990s

(Puschmann and Alt, 2005) due to the proliferation and advances of information

technology and the Internet, the tremendous potential savings achievable via this tool,

and possibly also because of the fear associated with the Y2K issue. While companies

were making experiences with this new technology, research articles aimed to capture of

what was happening, suggesting and testing relationships, and providing best practices,

frameworks, and models. While numerous papers have been published on this topic, no

comprehensive literature review was found that tries to structure this research. It is thus

the goal of the present paper to do just that, and to provide a starting point for a

classification scheme. For this purpose, we just consider the most recent advances of EP

in our literature review, excluding MRP and MRP II systems. De Boer et al. (2002)

provided a good list of these newer facets of electronic procurement, which include the

following:

 e-MRO, web-based ERP: the process of creating and approving purchasing

requisitions, placing purchase orders and receiving the goods or services

ordered via a software system based on Internet technology; e-MRO deals

with indirect items (MRO), Web-based ERP deals with product-related items,

 e-sourcing: the process of identifying new suppliers for a specific category of

purchasing requirements using Internet technology,

3
  e-tendering: the process of sending requests for information and prices to

suppliers and receiving the responses using Internet technology,

 e-reverse auctioning: enables a purchaser to buy goods and services needed

from a number of known or unknown suppliers, and

 e-informing: the process of gathering and distributing purchasing information

both from and to internal and external parties using Internet technology.

It is important to note that we are only looking at the business-to-business (B2B) sector,

thus excluding the business-to-consumer (B2C) side of it, which provides a whole array

of literature by itself. Furthermore, the goal of the present review is to identify general

themes and trends, to provide a broad account of what has been done in this area, and to

suggest areas for future research. As such, the review does not provide detailed insight

on specific manuscripts included in the review, but rather deals with the aggregate results

and describes the most pertinent themes identified on a general level.

This paper proceeds as follows. The next section provides a brief overview of the

methodology employed for selecting and classifying the articles. Section 3 presents the

results we obtained with our review of 157 articles. Section 4 discusses these results,

and section 5 offers directions for future research. Conclusions and limitations are

provided in section 6.

2. METHODOLOGY

Articles were selected from ProQuest’s ABI/INFORM Global database, which

includes almost 1,800 titles in business, finance and economics. A keyword search with

the term “electronic procurement” resulted in a total of 160 scholarly and/or peer-

4
reviewed journals, which represents the sample for the current study. The papers were

photocopied or downloaded and printed, and – if not available in print or via electronic

database – ordered via interlibrary loan. Upon review, three papers were excluded, since

they merely dealt with a book review, bringing the total number of manuscripts in our

sample to 157. For some of the papers unfortunately only abstracts were available so that

a full assessment of the manuscript was not possible; we had to merely rely on the

abstract in these cases. The complete list of papers is provided with the references.

To categorize the articles and to provide structure for the review, a classification

framework consisting of eight dimensions was developed upon an initial scanning of the

electronic procurement articles. Within this framework, manuscripts were compared

across the dimensions outlined in Table I.

Table I.
Literature review classification framework

Dimension Explanation
Time distribution of articles An examination of when how many EP articles appeared
Journal titles An examination of what journals publish most EP research
Industry sector An examination of which industry sectors are most
commonly investigated in EP research
Definitions of EP An examination of how EP is defined
Themes An examination of what EP themes are investigated
Constructs An examination of what constructs are used in EP research
Theoretical foundation An examination of what theories are used to motivate EP
research
Research method An examination of the research method used to conduct
the EP research

5
3. RESULTS

3.1 Time distribution of articles

The earliest publications dealing with electronic procurement occurred in 1997.

While the early years were not so abundant with published papers, interest in the

academic community picked up as seen in the increase in manuscripts in 2001. A peak

was reached in 2004 (33 articles), but interest did not ebb in subsequent years. Only

2007 showed a sharp decline of the number of articles, which can however be due to the

limited data available for that year (data collection was conducted during April 2007).

But even if the results are extrapolated, the expected total for 2007 would only be 15

articles.

Figure 1.
Time distribution of articles

35
30
25
Count

20
15
10
5
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year

In a further analysis step we tried to identify certain themes during the years. As

such, early papers dealt with EP in regards to electronic data interchange (Ramaseshan,

6
1997), the automation of formerly manual to automated processes (Gebauer and Schad,

1999; Putland et al., 1999), and the impact on the business environment (Klein and

Teubner, 2000; Orr, 2000; Schmitt and Beeres, 2000). Articles in that appeared in 2001

dealt primarily with market transformation issues inherent in the electronic revolution

(Barua et al., 2001; Scacchi, 2001; Segev and Gebauer, 2001), advantages of electronic

procurement (Olig and Spears, 2001; Oliveira and Amormin, 2001; Roche, 2001), and

recommendations and advice for successful implementation (Attaran, 2001; Rajkumar,

2001).

Works published in 2002 chronicled the continued adoption of this new

technology (Deutscher and Gruber, 2002; Gottschalk and Abrahamsen, 2002; Kheng and

Al-Hawamdeh, 2002; Osmonbekov, Bello and Gilliland, 2002; Yen and Ng, 2002),

recommendations and prescriptions for success (Boyer and Olson, 2002; Kim and Eom,

2002; Mabert and Skeels, 2002), as well as the impact on and the changes experienced in

how business is conducted (Bichler et al., 2002; Johnson and Whang, 2002;

Mukhopadhyay and Kekre, 2002). As more firms were adopting electronic procurement

and more experiences were shared, models and frameworks were developed, which was

the focus in 2003 (Devadoss, Pan and Huang, 2003; Garcia-Dastugue and Labert, 2003;

Goldsby and Eckert, 2003; Kinder, 2003; Knudsen, 2003; Skjott-Larsen, Kotzab and

Grieger, 2003; Swaminathan and Tayur, 2003). In addition, overviews of current

practices and trends were provided (Lancioni, Schau and Smith, 2003; Lancioni, Smith

and Schau, 2003).

Articles in the following year dealt with more specific aspects of electronic

procurement, such as electronic reverse auctions (Carter et al., 2004; Emiliani, 2004;

7
Millet et al., 2004; Teich et al., 2004), marketplaces (Eng, 2004; Le, Rao and Truong,

2004; White and Daniel, 2004; Zabel et al., 2004), and other systems (Cheung et al.,

2004; Kauffman and Mohtadi, 2004; Kim and Shunk, 2004; Panayiotou, Gayialis and

Tatsiopoulos, 2004; Zabel et al., 2004). The literature on adoption still continued

(Kauffman and Mohtadi, 2004; Wang, Chang and Heng, 2004; Zahay and Handfield,

2004). The year of 2005 saw a focus on the link between EP on supply chain

management (Breen and Crawford, 2005; Caputo et al., 2005; Croom, 2005; Grey,

Olavson and Shi, 2005; Puschmann and Alt, 2005). As the field developed further, more

complex and specific topics were investigated. For example, online auctions were

investigated in terms of supplier coalitions (Jin and Wu, 2006), barriers to adoption

(Hartley, Lane and Duplaga, 2006), trust (Fang, Wang, Hsu, 2006), multi-attribute

characteristics (Teich et al., 2006), design considerations (Bichler and Kalagnanam,

2006) and behavior (Engelbrecht-Wiggans and Katok, 2006). Additional manuscripts

published in 2006 dealt with various aspects related to suppliers, such as supplier

coalitions (Jin and Wu, 2006), the relationship to suppliers (Wagner and Essig, 2006),

supplier’s merit (Resteanu and Somodi, 2006), supplier integration (Talluri, Chung and

Narasimhan, 2006). The focus on electronic auctions (Leskelä et al., 2007; Talluri,

Narasimhan and Viswanathan, 2007) and advanced bidding strategies (Kameshwaran et

al., 2007) continued in 2007.

3.2 Journal titles

A wide variety of journals, in total 80, were the outlets of articles covering

electronic procurement. While Industrial Marketing Management (12) and the Journal of

8
Public Procurement (10) had the highest count, followed by the International Journal of

Electronic Business (9), Supply Chain Management (6), and the International Journal of

Services Technology and Management (5), no dominant journal emerged. In fact, almost

two thirds of the journal titles are represented only once in the sample (52 of the 80 titles).

The titles that contained at least two papers dealing with electronic procurement are listed

in Table II. This third of the journal titles represents two thirds of the total number of

articles in the sample (105 articles in 28 journals).

Table II.
Journal titles
Journal name Count
Industrial Marketing Management 12
Journal of Public Procurement 10
International Journal of Electronic Business 9
Supply Chain Management: An International Journal 6
International Journal of Services Technology and Management 5
Electronic Markets 4
European Journal of Operational Research 4
Industrial Management + Data Systems 4
Information Technology and Management 4
Interfaces 4
Management Science 4
Production and Operations Management 4
Decision Support Systems 3
IBM Systems Journal 3
International Journal of Production Economics 3
American Marketing Association. Conference Proceedings 2
BT Technology Journal 2
Computers in Industry 2
Electronic Commerce Research 2
Information & Management 2
International Journal of Computer Applications in Technology 2
International Journal of Electronic Commerce 2
International Journal of Operations & Production Management 2
International Journal of Technology Management 2
Journal of Management Information Systems 2
Journal of Supply Chain Management 2
MIT Sloan Management Review 2
Technovation 2

9
 The journals with the highest counts were further examined to identify any themes

across them. Electronic procurement papers published in Industrial Marketing

Management (IMM) primarily dealt with supply chain management related aspects (Eng,

2004; Garcia-Dastugue and Lambert, 2003; Lanconi, Schau and Smith, 2003; Lanconi,

Smith and Schau, 2003; Presutti, 2003), and to a lesser but still notable extent with

reverse auctions (Emiliani, 2004; Smeltzer and Carr, 2003) and EP adoption (Min and

Galle, 2003; Zahay and Handfield, 2004). Common themes that were investigated in the

Journal of Public Procurement (JoPP) included implementation (Croom and Brandon-

Jones, 2005; MacManus, 2002), success (Vaidya, Sajeev and Callender, 2006), usage

(Dooley and Purchase, 2006), and diffusion and growth (Moon, 2005; Reddick, 2004) of

EP in governmental and public institutions.

No clear themes could be identified among the EP papers that appeared in the

International Journal of Electronic Business (IJEB). The only notable commonality

among this subset was that two papers investigated the impact of electronic procurement

has on the supply chain structure (Ho, Au and Newton, 2003) and the buying center

(Garrido, Gutierrez and San Jose, 2006). Among the sample articles in Supply Chain

Management: An International Journal (SCM:IJ) the only discernable topic was the

focus on supply chains and networks among three of the six studies (Caputo et al., 2005;

Puschmann and Alt, 2005; Qualyle, 2003). An examination of the manuscripts from the

International Journal of Services Technology and Management (IJSTM) did not result in

any common area of electronic procurement that was more focused on.

10
3.3 Industry sector

Thirty-two percent of the articles reviewed did not specify an industry sector from

which they derive their results or to which they apply. These articles were kept general

in regards to industry, implying that their models and recommendations are generally

accepted. Examples are Wagner and Essig (2006), who provide a theoretical discussion

on the impact of EP on supplier relationship management, and Kameshwaran et al.

(2007), who develop a generic framework for an EP system, and formulate and solve an

operations research optimization problem for multiattribute electronic procurement.

Fifteen percent of the articles had multiple industry sectors as their reference point,

mostly because the methodology involved multiple case studies or a survey covering

several industries. However, many of these sectors included were some type of

manufacturing. For example, Rai et al. (2006) analyzed data from their survey sent to

potential respondents working for companies with U.S. SIC codes 35, 36, 50 and 73

(industrial machinery and equipment, electronics equipment, wholesale trade of durables,

business services). The U.S. Navy and a manufacturing company were the case studies

described in Mabert and Skeels (2002), while manufacturing and retail organizations

were the focus of Croom’s (2005) study, which used interview data from 98 companies.

Fourteen percent of the papers reviewed concentrated on the manufacturing

industry. While some manuscripts dealt with this sector in general (e.g., Attaran, 2001)

or focused on several manufacturing industries (e.g., Arbin, 2003), others concentrated on

specific sub-sectors. For instance, Emiliani (2004) focused on the aerospace supply chain,

Massa and Testa (2007) dealt with a manufacturer for electronic devices, and Fujimoto

11
and Oh (2004) and Muffatto and Payaro (2004) concentrated on the automobile and

motorcycle industries respectively.

The government and public procurement sector was represented with 13 percent

dealing with numerous facets of this theme. Several articles provided general insight into

the electronic procurement in the public sector (Croom and Brandon-Jones, 2005;

Oliveira, 2001), including military organizations (Liao et al., 2003) and experiences made

by large bodies, such as the European Union (Carayannis and Popescu, 2005).

Furthermore, diffusion (Moon, 2005), implementation (MacManus, 2002; Vaidya, Sajeev

and Callender, 2006) and usage (Dooley and Purchase, 2006) of EP in the public sector

was discussed. Additional topics covered embraced EP systems (Panayiotou, Gayialis,

and Tatsiopoulos, 2005) as well as reverse auctions (Settoon and Wyld, 2003), strategic

alliances in government EP (Kumar and Peng, 2006), accessibility of public EP websites

(Bruno et al., 2005), e-government initiatives (Devadoss, Pan and Huang, 2003), and a

model for the growth of electronic procurement in U.S. state governments (Reddick,

2004).

Overall, while for about one-third of the studies reviewed no industry focus was

provided, manuscripts dealing with multiple industries, manufacturing, or government

institutions comprise over two-fifths of the sample. The remaining 26 percent of the

selected articles deal with various industries, such as health care (e.g., Breen and

Crawford, 2005; Raffa and Esposito, 2006; Smith and Correa, 2005; White and Daniel,

2004), retail (e.g., Boyer and Olson, 2002, 2004; Kim and Eom, 2002), services (e.g.,

Holland et al., 2004; Leipold et al., 2004), logistics (e.g., Goldsby and Eckert, 2003;

Janssen and Verbraeck, 2005), construction (e.g., Abraham, Fuentes and Abraham, 2004;

12
Barthorpe, Chien and Jack, 2004), and libraries (e.g., Ball, 2003). Industries with only a

single article representation in the sample included universities (Barbieri and Zanoni,

2005) and a humanitarian aid business (Carter, 2001). Figure 2 provides a graphical

overview of the industry sectors represented in the literature survey.

Figure 2.
Industry sector

Libraries
Construction 2% Other
3% 5%
None
Logistics
32%
3%
Services
4%

Retail
5% Multiple
Health care 15%
5% Government
Manufacturing
13%
14%

3.4 Definitions of electronic procurement

In this step of the analysis we wanted to explore how electronic procurement is

defined, to identify similarities and differences across the studies. Most articles in our

sample had no discernable formal definition of electronic procurement, but relied on a

broad set of descriptions how EP can look like. However, those studies that provided

some type of definition agreed, for the most part, what constitutes EP. As such,

13
electronic procurement has been widely described, in its most basic form, as using

electronic means (the Internet, Web, e-mail) to buy products and services over the

Internet (Carayannis and Popescu, 2005; Davila, Gupta and Palmer, 2003; Roche, 2001;

Subramaniam and Shaw, 2004; Van Weele, 1994). Within this context, electronic

procurement entails electronic ordering, bidding and rendering via portals, extranets,

private platforms, marketplaces, and/or electronic data interchange (EDI) (Dooley and

Purchase, 2006); it can also involve the use of purchasing cards, reverse auctions, and/or

integrated automatic procurement systems (Moon, 2005). Overall, EP facilitates,

simplifies and enhances the corporate buying process on several levels (Presutti, 2003),

and includes all forms of electronic infrastructure that connects two organizations in the

purchasing process (de Boer et al., 2002; Dooley and Purchase, 2006; Min and Galle,

2003). Articles provided various illustrations, such as electronic procurement enabling

individual employees to make purchases in real-time directly from their own PCs, thus

cutting costs, improving operational effectiveness and improving customer service

(Croom and Johnston, 2003; Oliveira and Amorim, 2001).

Numerous articles also relied on definitions established in past research. The

most frequently used conceptualization of EP was the model developed by de Boer et al.

(2002). The authors describe EP as encompassing several functionalities including e-

MRO, web-based ERP, e-sourcing, e-tendering, e-reverse auctioning and e-informing,

which can be realized via electronic (public) marketplaces, intranets and extranets.

Several studies described EP not only as the simple and efficient buying of

products reducing transaction costs (Allen, 2003), but also noted additional benefits and

efficiencies that can be derived through process automation (Davila, Gupta and Palmer,

14
2003; Leipold et al., 2004). For example, Kameshwaran et al. (2007) conceptualized EP

as “an Internet-based business process for obtaining materials and services, and managing

their inflow into the organization” (Kameshwaran et al., 2007), with the potential to make

the identification of and negotiation with suppliers more efficient (Carter, 2001). As such,

electronic procurement systems can automate workflows, consolidate or leverage

organizational spending power, and identify new sourcing opportunities through the

Internet (Davila, Gupta and Palmer, 2003; Reddick, 2004). These systems can help in the

search, order processing, monitoring and control, and coordination of procurement

activities (Subramaniam and Shaw, 2004). Along the same lines the UK Office of

Government Commerce described electronic procurement as facilitating the procurement

process, from identification of requirements through to payment, and potentially to

contract management (UK Office of Government Commerce, as cited by Anonymous,

2004). Overall, electronic procurement is a very powerful business tool enabled by the

Internet that will revolutionize the purchasing function (Kheng and Al-Hawamdeh, 2002).

Electronic procurement does not only automate and facilitate internal process, but

it can also be extended across the entire supply chain, covering internal as well as

external B2B processes, enabling information sharing and integration (Minahan, 2001;

Stein, Hawking and Wyld, 2003; Roche, 2001; Talluri, Chung and Narasimhan, 2006;

Versendaal and Brinkkemper, 2003). As such, an EP system is usually connected to

other systems within the enterprise, such as ERP or EDI systems (Subramaniam and

Shaw, 2004). Other studies used the terms ERP and electronic procurement

interchangeably, which is consistent with the definition by de Boer et al. (2002) who

include Web-based ERP as a facet of EP. Electronic procurement has also been

15
conceptualized as electronic marketplaces (Ash and Burn, 2006; Goldsby and Eckert,

2003), and it has been described within the context of electronic commerce (Benslimane,

Plaisent and Bernard, 2005; Ugwu et al., 2002), information and communication

technology (Bruno et al., 2005), and supply chain management (Nissen, 2001; Qualyle,

2003). To that end, electronic procurement can fundamentally change and transform how

an organization conducts procurement, facilitating every step in the process (Presutti,

2003; Rai et al., 2006).

Some studies also alluded to the ongoing debate about what electronic

procurement really entails (Dooley and Purchase, 2006; Vaidya, Sajeev and Callender,

2006), and whether there is a distinction between electronic purchasing and electronic

procurement. As such, MacManus (2002) suggested using these terms interchangeably.

However, one study (Dooley and Purchase, 2006) specifically noted that a definition of

EP was provided for potential respondents to avoid confusion with differences in

definitions that may exist. Electronic procurement can also be seen as a specific area of

e-business (Versendaal and Brinkkemper, 2003), or as subset (Leipold et al., 2004) or a

mirror image (Johnson and Whang, 2002) of electronic commerce. While e-commerce is

a transaction conducted via electronic means, EP is the automation of many of these

processes (Vaidya, Sajeev and Callender, 2006).

3.5 Electronic procurement themes

Most articles in our sample (41%) dealt with prescriptions for successful

purchasing and best practices, including implementation experiences, outcomes, and the

impact on performance (e.g., Caputo et al. 2005; Cheung et al., 2004). A further 31

16
percent described the current state of practice, provided general overviews and

introductions into the topic, as well as frameworks (e.g., Alt, Gizanis and Legner, 2005;

Gottschalk and Abrahamsen, 2002). A total of 14 percent focused on factors influencing

the adoption of EP, its subsequent success, and differences between adopters and

nonadopters of electronic procurement (e.g., Massa and Testa, 2007; Min and Galle,

2003). Fourteen percent of the manuscripts in the sample dealt with decision support, for

example in the form of optimization (e.g., Buffet and Spencer, 2004; Leskelä et al., 2007).

Figure 3.
Electronic procurement themes

Decision
support
14%
Prescriptions
41%
Adoption
factors
14%

Current state
31%

3.6 Constructs of electronic procurement

In this step of our analysis we tried to identify the most commonly used constructs

for electronic procurement. The results were rather disappointing, since the vast majority

of the articles were exploratory or conceptual, not involving formal constructs. We did

not find any article in our sample that developed or tested a pure and focused construct of

17
electronic procurement. Oftentimes the key variables considered were binary, such as the

intent to adopt electronic procurement, or were measured with a single item, such as

number of suppliers participating in an online bidding event. Furthermore, we did not

find many other multi-dimensional constructs in the studies. A few exceptions include

performance and usability of websites (Boyer and Olson, 2004), EP intention (Dooley

and Purchase, 2006), and supplier support (Deeter-Schmelz et al., 2001).

We were also surprised to find so few relationships that are explicitly tested in the

articles examined. As such, only about 12 percent of the manuscripts surveyed contained

a specific test of a predetermined relationship between variables. Most often it was the

intention or action to adopt electronic procurement (e.g., Min and Galle, 2003; Hartley,

Lane and Duplaga, 2006; Dooley and Purchase, 2006), or the success or satisfaction with

EP initiatives (e.g., Millet et al., 2004). This was mostly assessed via surveys and case

studies.

3.7 Theoretical foundation

Most studies in our sample did not have any discernable theory that they relied on

for the motivation of their arguments. Among studies that used established theories,

transaction cost economics was the most frequently employed (e.g., Benslimane, Plaisent

and Bernard, 2005; Goldsby and Eckert, 2003; Kauffman and Mohtadi, 2004; Kim and

Umanath, 2005; Klein and Teubner, 2000). The resource-based view was also relied on

in a few studies (e.g., Ho, Au and Newton, 2003; Kumar and Peng, 2006; Salleh, Rohde

and Green, 2006; Zahay and Handfield, 2004), as well as the diffusion of innovations /

technology adoption (Deeter-Schmelz et al., 2001; Harley, Lane and Duplaga, 2006;

18
Boyer and Olson, 2002). Other theories or frameworks used include knowledge

management and the view of organizations as social collectives (Massa and Testa, 2007;

Hsieh, Yang and Lin, 2002), organizational buyer behavior (Osmonbekov, Bello and

Gilliland, 2002), the extended enterprise (Kinder, 2003), as well as forces of electronic

interconnections (Benslimane, Plaisent and Bernard, 2005; Hu, Au and Newton, 2003).

Support provided also coordination theory (Janssen and Verbraeck, 2005), information

economics (Essig and Arnold, 2001), negotiation theory (Carter et al., 2004), and the

learning organization (Zahay and Handfield, 2004).

The use of no theories is consistent with the observations we made when looking

at the overall purpose of the article. As such, we classified the research strategy of

whether it was a description of experiences or what is happening in the field, which was

usually done in order to provide an overview of new developments and tools available. A

second category was labeled “discovery”, into which we grouped articles that aimed at

deriving generalizations from observations, mapping of commonalities, or coming up

with recommendations. A third category dealt with studies that reviewed past research

and provided suggestions based on these insights obtained, and a fourth category dealt

with theory-building research.

Most frequently the research was classified as discovery, i.e. the derivation of

generalities from observations and prescriptions for success (e.g., Barbieri and Zanoni,

2005; Panayiotou, Gayialis and Tatsiopolos, 2004). This was followed by the group of

descriptive articles, which provided best practices, an account of experiences, or an

overview of innovative new approaches (e.g., Carter, 2001; Emiliani and Stec, 2005).

Theory-building research was done to a lesser extent (e.g, Zahay and Handfield, 2004;

19
Wagner and Essig, 2006), which is again consistent with prior findings. Percentages for

each grouping are provided in Figure 4.

Figure 4.
Research strategy

Review
5%
Theory building
10%

Discovery
54%

Description
31%

3.8 Research method

In this step we aimed at identifying the primary research method employed in the article.

Figure 5 provides a summary of our findings. As such, almost one third of the articles

consisted of a simple summary of what is being done. However, in some instances, these

observations were followed by a conceptual development or generalizations of some sort

(e.g., Klein and Teubner, 2000; Osmonbekov et al., 2002). The next most freuqently

used methodology was the survey, followed by the single case study.

20
 Figure 5.
Research method

35%
31%
30%

25%
Percentage

21%
20% 18%

15% 13%

8%
10%
4%
5% 2% 1% 1%
0%
Simple Survey Case study Mathematical Multiple case Conceptual Simulation Content Secondary
summary of studies theory analysis of data analysis
w hat is being extension w ebsites (from
done databases)

4. DISCUSSION

4.1 Time distribution of articles

Electronic procurement research is a relatively new field of academic study, and,

judging from the time distribution of articles, did not gain popularity until 2001.

However, this statement has to be taken with a grain of salt due to an often long

manuscript review process and the publication lag that is inherent to many academic

journals. In addition, academia tends to lag behind what is happening in industry, which

is another contributor of why electronic procurement research has not been more popular

before the turn of the century. Furthermore, it may not have been the main focus of

research articles before that time, and thus did not shop up in the database search. As

mentioned above, precursors of electronic procurement include MRP, MRP II and ERP

systems, as well as EDI. If these systems are labeled as one form of electronic

21
procurement, then its evolution would begin in the early 1980s, when numerous articles

dealt with MRP, MRP II, and EDI, and in the 1990s also with ERP issues.

Nevertheless, if one just considers the pure form of electronic procurement

systems, as most define them today, then the article distribution found in this study

reflects accurately what happened in industry. As such, the diffusion of electronic

procurement systems in industry is frequently said to have started in the late 1990s (e.g.,

Puschmann and Alt, 2005), especially due to advances in Web-based technology. With

the review and publication lag of academic journals, the sample in this study thus is a

good indication of what also happened in industry.

Looking at the themes that were investigated over the years provides us an

interesting but also logical overview of the progression in the electronic procurement

field. While early articles in our sample dealt with general automation benefits, later

articles explored the transformation of marketplaces and the resulting changes in how

business is conducted. Later on, reasons for adoption or non-adoption of the technology

were explored, and prescriptions for success were offered. The more recent years saw the

development of frameworks and models, to bring structure in this evolving area, and the

investigation concentrated on more focused techniques and approaches, such as the

online reverse auction or electronic marketplaces. This was followed by an integration of

EP into the broader picture of the supply chain. Most recently, articles primarily focused

on advanced topics related to electronic reverse auctions, as well as various aspects

related to suppliers.

22
4.2 Journal titles

The most frequently used outlet for electronic procurement research was

Industrial Marketing Management (IMM), with 12 published papers dealing with

electronic procurement. However, there was no dominant journal; even IMM only

contained 7.6 percent of the articles in the sample, and overall, each journal title had only

an average of two papers. These results indicate that while the majority of publications

has appeared in marketing, operations, procurement, supply chain management, e-

business and information technology journals, other disciplines have covered electronic

procurement as well. As such, research appeared in journals focusing on health care,

education, account, law, construction management, banking and quality management.

This illustrates that electronic procurement is a boundary-spanning and cross-disciplinary

area, having an impact on disciplines not readily associated with it. Electronic

procurement can thus be seen as yet another technology breaking down silos between

departments, achieving better integration among functional areas for increased overall

business performance. In a few years, the International Journal of Procurement

Management (IJPM) should be among the journals that deal with electronic procurement

the most, since this is one of the foci of the present journal.

We also tried to identify common themes that emerged from articles in a

particular journal. The titles containing the most papers were the focus of this step. As

such, EP manuscripts in Industrial Marketing Management covered primarily supply

chain management related aspects, but also reverse auctions and adoption of electronic

procurement. Electronic procurement articles in the Journal of Public Procurement dealt

mainly with implementation, success, usage, and diffusion and growth of EP in

23
governmental and public institutions. For the remaining journals the themes were not as

clear. The International Journal of Electronic Business seemed to include articles

exploring the impact of EP, while Supply Chain Management concentrated on supply

chain related issues.

In a next step we looked at the official journal descriptions to explore whether the

coverage of EP in general or certain themes investigated could have been the result of the

editorial policy of the respective journal. We focused again on the journals that

contained the most EP papers, since an evaluation with just a handful of articles would be

prone to error due to possible outliers or exceptions. First we looked at Industrial

Marketing Management. According to the description of the journal, it is “geared to the

needs of marketing managers, executives and professors”, and aims to provide “most

timely data and current thinking necessary for better industrial marketing decisions and

strategy” (Industrial Marketing Management, 2007). Against this background, our

finding that IMM is the journal with the highest number of EP articles is not surprising,

due to the practical, managerial and applied focus of the journal. IMM may thus be more

open to emerging managerial concepts, tools and practices, whereas other journals may

focus more on the theoretical, conceptual or abstract.

The Journal of Publics Procurement (JoPP) is “dedicated to the study of public

procurement”, giving priority to “practical and analytical solutions to public problems.”

In a listing of appropriate topics “purchasing technology” is mentioned first, under which

electronic procurement can be grouped (Journal of Public Procurement, 2007). Insightful

is also the composition of the editorial board, which consists of an about equal

representation of academics and practitioners in public procurement. This practical and

24
applied focus can explain why so many of their articles explore EP issues. Electronic

procurement is an emerging field with a need for additional insight and guidance for

practitioners. This strong relevance for practice can further explain the significance for

JoPP.

While not focusing on electronic procurement per se, the International Journal of

Electronic Business aims to “develop, promote and coordinate the development and

practice of electronic business methods”, with the objective to help “professionals

working in the field” (International Journal of Electronic Business, 2007). Here we again

see the strong emphasis of managerial and practical relevance articles in this journal

should posses, providing a possible explanation for the high frequency of EP articles.

Similar arguments can be made for Supply Chain Management: An International Journal

(SCM:IJ), and International Journal of Services Technology and Management (IJSTM).

Both journals aim to promote the dialogue between academics, researchers, practitioners

and executives (Supply Chain Management: An International Journal, 2007; International

Journal of Services Technology and Management, 2007). While SCM:IJ focuses on

supply chain related aspects, IJSTM concentrates on services innovation, technology and

management. Overall, we can conclude that the appearance of such a high number

articles dealing with electronic procurement in the discussed journals is consistent with

the objectives, aims and scope, as well as the overall editorial policies of the respective

outlets.

25
4.3 Industry sector

Most of the studies reviewed (32%) did not relate to a certain industry sector,

mostly due to the nature of the manuscript. As such, these papers were conceptual,

theoretical or mathematical in orientation, thus no industry focus was necessary. These

articles try to make sense of what is happening in the EP arena on an abstract level,

theorize patterns that are emerging, propose general frameworks, or describe in broad

terms where the field of EP Is heading. Some articles, such as this one, deal with a

review of past research or practices, and are thus not directed at one industry.

Fifteen percent of articles dealt with multiple industries, which were mostly

comprised of some type of manufacturing firms. An additional 14 percent was made up

of studies focusing on the manufacturing industry alone, or even only a subset of it. A

large group of articles (13%) was also classified as dealing with public or governmental

electronic procurement. The remaining manuscripts (26%) dealt with industries that do

not form a big contingent in our sample, such as health care (5%), retail (5%) and

services (4%). This analysis suggest that primarily manufacturing companies, but also

government agencies are heavy users of EP, and are very proactive in this regard.

Several insights can be gained from these results. While it is often difficult to

control the sample in terms of industry sector, there are ways to do so, for example by

only sending a survey instrument to prescreened or preselected respondents within certain

industries. However, frequently researchers have to rely on convenience samples, for

instance generated with address lists to whom one has access, or with case study

companies to whom one has close contact or relationship, and that are thus more willing

to participate in the study. This fact may have influenced some of the results above.

26
 In addition, electronic procurement is a relatively new area, and it may not have

disseminated into all industry sectors fully. Similarly, some sectors may reap more

benefits from EP than others, creating more fertile ground for this new technology among

the former. Overall, certain industries are oftentimes faster than others to adopt new

innovations and technologies. For example in regards to electronic reverse auctions, it

has been show that current users are mostly within manufacturing, since the products they

procure are well-suited candidates for this approach (Beall et al., 2003). Therefore the

manufacturing industry has been the focus of studies on reverse auctions (Schoenherr and

Mabert, in press). Likewise, research articles frequently aim to report best practices,

which can serve as a guide for others. As a result, proactive companies in EP are often

the focus of initial case studies reported in the academic literature (Schoenherr and

Mabert, 2006). Hence, by looking at what industry sectors are most commonly

investigated, one can get an indication in which industries EP is most often already

practiced. This is true since one would not set out and conduct a study about EP in an

industry that is not likely to use electronic procurement, unless it was a very exploratory

study, or one wanted to investigate reasons for non-adoption.

Concluding, we suggest that especially manufacturing-related industries are

proactive in practicing electronic procurement, primarily due to the nature of their

business, parts required, buyer-supplier relationships, and business models. Surprising

was the large number of articles dealing with governmental electronic procurement, since

research in most business schools focuses on enterprises and companies, rather than the

public sector. An explanation for this observation can be the strong representation of

manuscripts from the Journal of Public Procurement in our sample. Regardless, it is

27
important to note that public institutions are often very proactive in their procurement

approaches, and should thus be the focus not only of EP, but also in other aspects of

business.

4.4 Definitions of electronic procurement

Most articles did not have a formal discernable definition of electronic

procurement. Instead, EP was described in rather general terms, mentioning facets of it

as illustrations. While there was general agreement that EP entails the use of electronic

means to source products and services, subtle differences existed. A few articles also

dealt with the confusion that exists between terms of ‘electronic procurement” and

“electronic purchasing”, suggesting that they can be used interchangeably.

We were surprised to not see more formal definitions of electronic procurement,

since not all studies deal with it in the same way. As such, some articles dealt with

particular aspects of EP, for example reverse auctions, whereas others considered the

whole spectrum of EP applications, and even put it into the wide context of supply chain

management.

Above observations can be explained by the fact that EP is a relatively new area,

and studies so far have dealt mostly with an exploration of this emerging area. Therefore

no formal definitions or conceptualizations have been developed yet. A few exceptions

exist, for example the characterization in de Boer et al. (2002). Another explanation why

not more formal definitions exist can be that the concept of EP is assumed to be so well

understood that no official definition is deemed necessary.

28
4.5 Electronic procurement themes

The majority of manuscripts in our sample dealt with prescriptions and best

practices for electronic procurement, followed by an account of the current state and the

proposition of frameworks. A notable number of articles also dealt with the adoption and

nonadoption of EP technologies. These articles build the foundation of the accumulated

knowledge in electronic procurement research. They can and should be used to develop

more specific theories and frameworks, establishing the further the field of electronic

procurement.

4.6 Constructs of electronic procurement, theoretical foundation, and research method

The majority of the manuscripts in the sample did not have any formal construct

of either electronic procurement, antecedents or factors influencing it. This was

surprising, but can be explained by the relative newness of this research area, and the still

mostly exploratory articles that are published. As such, the foundation for this field has

to be built first, until more rigorous studies can be conducted. This is consistent with our

prior findings above, as well as our observations when we looked at the use of theory

among the studies surveyed. As such, only very few studies relied on past theories to

motivate their arguments. Some of the more frequently used theories include the

resource-based theory, transaction cost economics, and the theory of diffusion / adoption

of innovations. However, for most aspects of electronic procurement, theories do not

exist yet (Le, Rao and Truong, 2004), or have simply not been applied yet. This became

also evident when we surveyed the articles in terms of their research strategy. As such,

most articles dealt with discovery and description, and only 10 percent aimed to develop

29
new theory. Similarly, when examining the manuscripts according to their research

method employed, then almost one third of the articles consisted of a simple description

of what is being done. This was followed by survey research and case studies.

5. FUTURE RESEARCH DIRECTIONS

5.1 Time distribution of articles

When looking at the distribution of EP articles over time, the prospects may seem

not too promising. Figure 1 suggests that EP research has seen its prime, and that

research activity in this area is prone to decline. Questions may arise, such as “Is

electronic procurement no longer important?” or “Has research in EP lost its

significance?” Based on conversations with practitioners, we would negate these

questions. While electronic procurement may not be as “sexy” any more as it was at the

start of the millennium, it certainly continues to add value. Electronic procurement has

become part of the purchasing professional’s toolbox, and it has to be seen within this

context. It is nothing new or novel any more, and incremental but significant

improvements are still possible. There are constantly new developments and advances

emerging. Therefore, researchers should not become complacent, and continue to explore

this area. Without doubt, the “long-hanging fruit” in terms of academic dissemination

have been picked. Therefore, future studies need to be more rigorous, relating EP to

developed theories, and employing more advanced statistical analyses. The field has

moved from the exploratory phase to a stage where theories related to EP can and should

be developed. Our examination of the themes published over the years provides support

for this trend.

30
 Most likely, the field of electronic procurement will undergo similar

developments as the field of quality management (QM) in the 1980s and 1990s, parallels

can be seen. As such, while the number of publications dealing with quality management

per year has definitely declined over the years, interest is still there. However, articles

considered for publication nowadays must be more advanced in terms of theoretical

foundation, methodology and statistical analysis, or investigate new facets of QM, such

as ISO 14000 certifications.

5.2 Journal titles

Electronic procurement is a cross-functional activity represented in a variety of

journals. However, for exploratory studies of EP, and in general, of new advances,

approaches and technologies, IMM and JoPP, seem to be more receptive outlets for this

type of research. However, researchers should also consider IJPM. The present journal

serves as “a platform for interaction between researchers and practitioners”, emphasizing

the impact of information technology and systems on procurement practice, and deals

with emerging issues in the field (International Journal of Procurement Management,

2007). This makes IJPM a prime outlet for their high-quality research on electronic

procurement.

It is also expected that electronic procurement will become more popular among

other journals, especially as the facets investigated become more developed and grounded

in theory, and as more rigorous research and analysis techniques, such as structural

equation modeling, can be applied. Constructs of electronic procurement, and its

31
antecedents and outcomes, need to be developed, moving from exploratory research to

more theory development and testing.

5.3 Industry sector

Most EP research to date has dealt with the manufacturing industry, most likely

due to the suitability of their procured products and services for this approach. The

successful application of EP has also been demonstrated in public procurement. Future

studies should also look at other industry sectors. Now that electronic procurement is

starting to mature in manufacturing, EP solution providers need to look for new

customers in other industries. With offerings in place, the diffusion of EP should then

also take place there. In fact, these sectors may experience a “late-mover advantage”,

learning from the experiences made in the manufacturing industry, thus avoiding pitfalls

and benefiting from lessons learned.

The focus should however not shift off manufacturing and government agencies

completely. Since these sectors were so proactive in the early years of EP, it will be

insightful to look at where they are right now, and what advanced practices they are using

as their EP systems are maturing. They certainly did not sit still, but likely improved

their systems continuously.

5.4 Definitions of electronic procurement

Most of the articles in our sample did not provide a formal definition of electronic

procurement. Since every research may understand the concept differently, this is an

issue that needs to be addressed. For studies involving survey research this is of

32
heightened importance, since each potential respondent may have a slightly different

conceptualization of what EP entails (Dooley and Purchase, 2006). Therefore we suggest

that EP is defined explicitly and unambiguously at the beginning of the study to avoid

confusion. This can be accomplished by adopting or adapting an established definition

from past research, or developing an own characterization of how EP is understood.

Future research should address this issue further, specifically with the

development and provision of a grounded definition of electronic procurement, as well as

its distinction from electronic sourcing and electronic purchasing. Future studies should

also address the relationship of EP with e-commerce, and their interface with ERP

systems. Some articles in our sample already explored this avenue, but the topic is rich in

opportunities for additional research, especially as the field of EP is evolving and

providing enhanced integration across the supply chain. On a conceptual level, future

studies should also place EP within the context of other associated areas, and how they

relate to each other. A first attempt is made in Figure 6 below, which conceptualized

electronic procurement as part of e-commerce, being interlinked with various other

electronic efficiency tools and ERP.

33
 Figure 6.
Rough conceptualization of the EP context

Electronic Commerce

EP
- reverse auctions
- e-catalogs
- marketplaces
- e-tendering
ERP
Systems

e-selling
e-marketing
e-servicing
e-distribution
…

5.5 Electronic procurement themes

Numerous themes have been investigated in regard to electronic procurement.

Most studied relied on prescriptive or descriptive accounts of what is happening, and

explored the adoption of EP technologies. Future research should take this knowledge

base as a foundation to develop more rigorous frameworks and hypotheses to be tested.

It seems that adoption research has received a fair amount of attention, so this area is

close to exhaustion. However, as new adopters join the circle of EP users, new research

opportunities emerge. Another future theme with promising potential is to view EP

within the context of strategic procurement, and how EP can aid a company to improve

its strategic procurement practices. This is taking place as firms move from the

transactional support that EP provides to a more strategic employment of the tool.

34
5.6 Constructs of electronic procurement

Among the studies examined we did not find many that developed or tested

formal constructs of either electronic procurement, or its antecedents or descendants.

This observation is likely due to the still very exploratory state of this research area.

Nevertheless, we feel that the field of electronic procurement is developed enough at this

time, so that more formal multi-item constructs can be developed, enabling more rigorous

and sophisticated statistical testing opportunities not possible with single-item measures.

As such, we hope to see more research employing structural equation modeling to EP

aspects.

The characterization by de Boer et al. (2002) can provide a formidable starting

point to develop a multi-dimensional construct of EP. For example, electronic

procurement could be conceptualized as a formative construct consisting of all the facets

of EP, such as reverse auctions, electronic catalogs, marketplaces, electronic tendering,

electronic informing, and e-MRO (Figure 7). This list is not meant to be exhaustive, but

should serve as a starting point for future research to develop such constructs. Each

component item of the EP construct could be measured on a seven-point Likert scale

assessing the degree with which the respective EP manifestation is practiced in the

company, ranging from “practiced/used a lot” to “not practiced/used at all”.

Constructs of electronic procurement could furthermore be distinguished whether

they are employed or used by the a buying company or by a selling company. Sometimes

service providers or intermediaries are involved, and looking at EP from their perspective

will also be insightful.

35
 Figure 7.
A formative construct of electronic procurement

E-reverse
auctions

E-sourcing

E-tendering

E-informing Electronic
Procurement

E-MRO

Web-based
ERP

5.7 Theoretical foundation

The majority of the articles examined did not rely on any prior theories to

motivate their arguments, but were descriptive or prescriptive in nature. This is

consistent with our other findings, illustrating again that EP research has not matured yet,

and that there is tremendous potential and opportunity for contributions. The few

theories that were used most often in our sample include transaction-cost economics, the

resource-based view, as well as the diffusion of innovations for exploring reasons for EP

adoption. Many more theories remain untapped, and future research should aim to apply

36
established theories in marketing, operations and supply chain management, as well as

industrial / organizational buyer behavior, to electronic procurement phenomena.

5.8 Research method

Many of the articles in our sample consisted of just a simple summary of what is

being done, lessons learned and best practices. While a good number of manuscripts also

employed survey research and case studies, there is still significant potential to be

explored. We therefore strongly encourage future research to investigate the area of

electronic procurement with survey and case study methods. Now that EP is more

diffused, larger survey sample sizes should be achievable, making the date more

susceptible to more advanced statistical analysis.

6. CONCLUSIONS AND LIMITATIONS

This paper reviewed 157 refereed journal articles dealing with electronic

procurement, and examined them along eight key dimensions, including the time

distribution of the articles, journal titles, industry sector, electronic procurement

definitions, themes investigated, constructs used, theoretical foundations, and research

methods. Results were discussed and directions for future research were provided.

While many EP studies have already been conducted, the potential is still large. This

paper should serve as a motivation for researchers to explore this exciting area even

further, along the research gaps outlined above.

Some limitations exist with this research, which at the same time pose

opportunities for future studies. The main limitation concerns the methodology

37
employed, i.e. the search of the ABI/INFORM Global database (cf., Blaszczynski and

Scott, 2003). While this resource contains a vast number of titles, it does not include

some journals that may have provided valuable insight to the present study. For example,

the Journal of Purchasing and Supply Management would be a viable candidate. In

addition, other lesser known journals and research outlets can provide some valuable

insight as well, with the studies by Mabert and Schoenherr (2001a, 2001b, 2003, 2006),

and Schoenherr (2004) serving as examples. However, to avoid any confounding effects,

this study relied only on the results provided by the ABI/INFORM Global database. A

similar approach was successfully employed in past studies (e.g., Burgess et al., 2006).

A further limitation includes the search term used in the article search (“electronic

procurement”). Similar keywords, such as “online procurement”, “online purchasing” or

“electronic sourcing” would have resulted in a different set of manuscripts. However,

searches with these terms only resulted in a few more relevant articles. For example, the

keyword “online procurement” retrieved a total of only eleven articles, of which five

were not included in the sample. The search for “online purchasing” resulted in a total of

61 articles, many of which however dealt with business-to-consumer purchasing, not the

focus of this study. Based on these findings, the approach taken in this paper was

deemed appropriate, also again to avoid confounding effects.

An additional limitation related to the approach chosen is that articles dealing

with electronic procurement and having appeared in journals included in the database did

not show up as part of the sample. As such, the authors are aware of a number of studies

that should have been included, but that were not displayed by the search engine (e.g.,

38
Bendoly and Schoenherr, 2005). This could be related to the choice of keywords or the

coding within the ABI/INFORM Global database.

In addition, for a few articles included in the sample the full-text version of the

paper could not be obtained, so the analysis had to rely purely on the abstract; as such,

some important details may have been overlooked. However, this review was not

intended to provide a specific and thorough review of each article, but to offer a broad

picture of the electronic procurement area, general themes and trends. Due to the large

number of articles included in our review, compared to similar review papers using only

half the number of articles we have included, we feel that this shortcoming is not a major

concern.

As an avenue for future research it is suggested to replicate this study with an

article sample generated by looking at the most relevant journals for procurement,

operations and supply management, and then manually scanning the articles for

electronic procurement research, rather than relying on a keyword search in academic

databases. A benefit of this manual approach would be that only the most relevant

articles can be included in the sample, including manuscripts missed with a keyword

search (since EP may not have been used as a keyword for the article), while excluding

others (some articles in our sample, derived with a keyword search, were not heavily

focused on EP, although they included such keyword). Additional titles suggested for

inclusion and not available in ABI/INFORM Global, should comprise, but should not be

limited to the Journal of Purchasing and Supply Management, the International Journal

of Integrated Supply Management, the International Journal of Procurement

Management, and PRACTIX.

39
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