The Effect of e-Procurement Technology on Performance of Apparel Industry in Sri Lanka: The Mediating Role of Procurement Practices

Abstract

The apparel industry in Sri Lanka is one of the vital sectors in the country’s economy
having recorded substantial development over the past. The entire procurement
process of the industry, from the purchase of raw materials through to the delivery of
the finished product, is crucial to supply chain management and decision-making.
Use of electronic procurement technology (EPT), procurement practices, and
procurement performance are the three key factors that affect this process. This
research aims to explore the relationship among EPT usage, procurement practices
and procurement performance of the apparel sector in Sri Lanka. More specifically
the study investigates the mediating effect of procurement practices on the
relationship between EPT and procurement performance. Data were collected
through a structured online questionnaire from randomly selected 40 supply chain
and procurement management staff of three leading apparel companies in Sri Lanka.
Collected data were analyzed by using SPSS statistical software with descriptive and
inferential statics. The results of the analysis provide evidence for statistically
significant positive effects of EPT and procurement practices on procurement
performance. Moreover, the study found a statistically significant mediation effect of
procurement practices on the relationship between the usage of EPT and procurement
performance. Thus, this study contributes to the literature by providing new insight
into the importance of investments in new technology for effective procurement
processes.
Keywords: e-Procurement, Performance, Apparel industry, Sri Lanka