Type of procurement and operational performance: Comparing e-procurement and offline purchasing

Advanced technology has paved the path for improving overall performance in supply chain management, and has turned the latter into a competitive advantage for many companies. This study explores electronic procurement and its relationship with operational performance. Data was collected by means of questionnaires distributed to active vendors and end users in Company X. The results reveal that operational performance differs with the type of procurement: e-procurement vendors have better operational performance compared to those practicing traditional purchasing. However, the relationship between type of procurement and operational performance is moderated by business volume, vendor region, extent of trust and cooperation, whereas product type did not hold a significant moderator effect. Accordingly, managers should adopt e-procurement in their respective organisations to improve operational performance in supply chain management.