A suppliers' perspective of e-procurement integration in automobile industry

Authors:
Noor Raihan Ab Hamid;Aznur Hajar Abdullah
Affiliations:
Faculty of Business Administration, Universiti Tun Abdul Razak, Malaysia;Faculty of Management, Multimedia University, Malaysia
Venue:
WSEAS TRANSACTIONS on SYSTEMS
Year:
2009

Citing 6
Cited 0

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Abstract

Most automakers find that integrating with their suppliers in an e-procurement environment able to help them streamlining information across diverse suppliers base. However, many barriers to the integration of e-procurement could hold back suppliers from realizing the integration with automakers (buyers). This study deals with e-procurement integration (EI) barriers within the Malaysian automobile industry, focusing on parts and components suppliers as the target respondents. A number of barriers, grouped as buyers, cultural, financial, IT and security barriers have been identified to influence suppliers decision to participate in EI network. However, only buyers barriers was identified as the major impediments to EI within the industry. This study also illustrates the effects of suppliers EI strategy and firm size on suppliers decisions in EI involvement. Overall, the suppliers who take on a passive approach to EI and large firm suppliers view buyers barrier as significant.