Determinants of corporate adoption and diffusion of e-marketplace : internet procurement perspective

Abstract

B2B electronic commerce can contribute to lower purchase costs, reduced inventory, enhanced efficiency of logistics, as well as to increased sales and lower and marketing costs. From the purchasing company``s point of view, B2B electronic commerce facilitates procurement innovations to result in reduced purchase price, reduced cycle time, and improved supplier sourcing. Of the two primary forms of B2B electronic commerce (interorganizational systems based on electronic data interchange, electronic marketplace), this study explores the issues related to e-marketplace. So far, prior research on B2B e-Marketplace has focused on analyzing its operating benefits, not addressing the factors that may impact the corporate purchasing department``s decision to source electronically. Field applications and technical aspects of e-Marketplaces have been discussed at significant length; but limited empirical research has been conducted to understand the factors related to the e-Marketplace adoption and diffusion. With this background, this study, based on prior research in innovation theory, has identified nine variables under three broad categories (technological, environmental, and organizational contexts) and evaluated their influence on e-marketplace adoption and diffusion within organizations and whether extensive diffusion would result in improved procurement performance for the organization. A multi-item instrument was developed to measure these variables and data were collected from 221 organizations using a mail survey. The results of this study provide significant support to past findings in innovation and IS literature. Seven factors, such as compatibility, complexity, maturity of technology, external pressure, managerial innovativeness, satisfaction with existing method, and slack resources were key determinants of e-marketplace``s adoption. Among them, maturity of technology, external pressure, and satisfaction with existing method were other key determinants of...