The Adoption of Procurement 4.0 and Supply Chain 4.0; Drivers and Barriers

Abstract

The adoption of automatic procurement systems has been an emerging trend in the supply chain area. In this study, we develop a conceptual model using a technology–organization framework to investigate the factors which influence manufacturing firms to adopt technology. Our model proposes that the adoption of technology is influenced by Technology advancement, cost, firm size, firm scope and operational performance. The objective of this study is to identify the conditions, as well as the contributing factors, for the adoption of automatic procurement systems in firms. Data were collected from 120 firms in Pakistan, and structural equation modeling with partial least squares is adopted to analyze the data. The results suggest that high Technology advancement, firm size, cost, firm scope, operation performance, are important factors affecting IT adoption in manufacturing firms. Therefore, decision support should be provided for enterprises from the aspects of technology, organization to improve the adoption of automatic procurement systems.