Comparison of Traditional vs E-procurement on Organizational Performance in Pakistan

Abstract

Pakistan is on the verge of development and for it to stay on track public and private sector should elevate productivity, organizational performance and utilize efficient and effective methodologies making use of modern tools and software. Procurement methods used all over the world are advanced and us IT based systems as assistance for cost effective functioning of an organization. For a country like Pakistan where most of the enterprises are of small and medium scale, there is a need to estimate whether organizations are eligible to invest in modern solutions to achieve all the promising benefits. While in most of the cases, smaller organizations do not have the luxury to operate using modern tools, hardware and software altogether due to a range of factors. After collecting data from more than 157 questionnaires, a model has been proposed to help small and medium enterprises to estimate and predict whether their shifting towards eprocurement systems will bear any fruit for them. The model has its foundation on the principles of procurement, value for money, ethics, competition, transparency and accountability. While some organizations may be comfortable in operating under traditional procurement methods, it is still need of the hour to upgrade to latest systems to coupe up with the rest of the word. The research focuses on the study of traditional and e-procurement methods on organizational performance in health care market of Pakistan. For the matter MATLAB Math works simulation tool, Fuzzy toolbox has been utilized to cater with the complexity of results obtained and their analysis. Research concludes that proposed model can be used by organizations to save time and money, as hit and trail, while opting for e-procurement systems in avidity of gaining higher organizational performance for their business.