Dutch Journal of Finance and Management

Dutch Journal of Finance and Management, 2023 - Volume 6 Issue 2, Article No: 24103
https://doi.org/10.55267/djfm/14056

Published Online: 21 Dec 2023

Views: 339 | Downloads: 350

The aim of study to investigates the role of e-procurement technologies to mitigate corruption within the public procurement sector of Pakistan due to which E-procurement can’t be implemented. It examines the factors that contribute to corruption probability in government procurement process. The implementation of E-Procurement, within the public sector represents a significant transformation in the country's governance which serves as a strategic response to enhance transparency, accountability, and efficiency in public procurement processes. In the design of E-procurement adoption, three primary factors were taken into consideration to address obstacles: Monopoly power; Information asymmetry; Transparency and accountability. A survey was distributed to 232 procurement specialists and government suppliers; the approach chosen involves the distribution of a well-structured closed-ended questionnaire to enable quantitative assessment, utilizing a convenience sampling method. Obtained informed consent from participants that ensure participants understand the purpose, procedures, potential risks, and benefits of the research project and voluntarily agree to participate.  The SPSS software was employed to compile the results of multiple regression models. The findings reveal a substantial 76.9% impact of various variables contributing to adaptation of E-procurement. The result indicates that all three-independent variable: Monopoly power, Information asymmetry, transparency & accountability are creating major resistance in implementation of E-procurement in the government organizations which are the major cause of corruption. This research provides valuable insights into enhancing the efficiency and effectiveness of resources within the public sector. As one of the few studies on this topic, it serves as a foundational piece of literature that can guide future research and policymaking endeavors in Pakistan's public procurement landscape. Ultimately, the successful implementation of E-Procurement has the potential to transform how public funds are managed, ensuring greater accountability, transparency, and efficiency in public sector operations.

E-Procurement Public Procurement Corruption Factors PPRA Pakistan

• Afolabi, Adedeji et al. 2019. “Critical Success Factors (CSFs) for e-Procurement Adoption in the Nigerian Construction Industry.” Buildings 9(2).
• Andersen, Kim N. et al. 2010. “Fads and Facts of E-Government: A Review of Impacts of E-Government (2003-2009).” International Journal of Public Administration 33(11): 564–79.
• Angokho, Airo Cyprian, Shem Juma, and Musiega Douglas. 2014. “Challenges in Achieving Transparency and Accountability in Public Procurement Procedures in Secondary Schools Sabatia Sub-County, Vihiga County, Kenya.” International Journal of Innovative Research & Development 3(5): 324–30.
• Avianto, Hadi, Moh. Nizarul Alim, and Tarjo. 2019. “The Effect of Monopoly Power and Integrity On The Tendecy To Commit Fraud In E-Procurement.” Asia Pacific Fraud Journal 4(1): 112–20. http://apfjournal.or.id/index.php/apf.
• Bertot, John C., Paul T. Jaeger, and Justin M. Grimes. 2010. “Using ICTs to Create a Culture of Transparency: E-Government and Social Media as Openness and Anti-Corruption Tools for Societies.” Government Information Quarterly 27(3): 264–71.
• Chaturvedi, Aadhaar, and Victor Martínez-De-Albéniz. 2011. “Optimal Procurement Design in the Presence of Supply Risk.” Manufacturing and Service Operations Management 13(2): 227–43.
• Chu, Pin Yu, and Shih Ying Chiang. 2014. “A Study of Establishing Evaluation Indices for Open Government Data.” Proceedings of the European Conference on e-Government, ECEG 2014-Janua(June): 393–401.
• Dolla, Tharun, Ganesh Devkar, and Boeing Laishram. 2021. “Procurement Governance and Information Asymmetry in Waste Management of India.” Built Environment Project and Asset Management 11(1): 38–51.
• Faheem, Muhammad, and Danish Ahmed Siddiqui. 2020. “The Impact of E-Procurement Practices on Supply Chain Performance: A Case of B2B Procurement in Pakistani Industry.” SSRN Electronic Journal.
• Fang, Xiang, Jun Ru, and Yunzeng Wang. 2014. “Optimal Procurement Design of an Assembly Supply Chain with Information Asymmetry.” Production and Operations Management 23(12): 2075–88.
• Fatimah, S., and Habiburrochman. 2020. “The Impact of Monopoly Power, and Asymmetric Information to Adopt e-Procurement | El Impacto Del Poder de Monopolio, e Información Asimétrica Para Adoptar La Contratación Electrónica.” Opcion 36(SpecialEdi): 994–1010.
• Ferwerda, Joras, Ioana Deleanu, and Brigitte Unger. 2017. “Corruption in Public Procurement: Finding the Right Indicators.” European Journal on Criminal Policy and Research 23(2): 245–67.
• Goyal, Yugank. 2019. “How Governments Promote Monopolies: Public Procurement in India.” American Journal of Economics and Sociology 78(5): 1135–69.
• Hui, Wee Shu et al. 2011. “Procurement Issues in Malaysia.” International Journal of Public Sector Management 24(6): 567–93.
• Kayis, Enis, Feryal Erhun, and Erica L. Plambeck. 2013. “Delegation vs. Control of Component Procurement under Asymmetric Cost Information and Simple Contracts.” Manufacturing and Service Operations Management 15(1): 45–56.
• Kim, Sang-hyun, and Serguei Netessine. 2013. “Procurement Under Information Asymmetry Procurement Under Information Asymmetry.” Management Science 59(1): 189–206.
• Kim, Seongcheol, Hyun Jeong Kim, and Heejin Lee. 2009. “An Institutional Analysis of an E-Government System for Anti-Corruption: The Case of OPEN.” Government Information Quarterly 26(1): 42–50. http://dx.doi.org/10.1016/j.giq.2008.09.002.
• Kumar, P., Aziz, S., & Khan, A. M. (2023). E-Procurement and Company Performance: A Quantitative Analysis of The Textile Industry of Pakistan. International Research Journal of Management and Social Sciences, 4(3), 234-249.
• Kumar, Prince, and Shahid Aziz. 2022. “Managing Supply Chain Risk with the Integration of Internet of Things in the Manufacturing Sector of Pakistan.” 5(2).
• Lindskog, Helena, Staffan Brege, and Per-Olof Brehmer. 2010. “Corruption in Public Procurement and Private Sector Purchasing.” Journal of Organisational Transformation & Social Change 7(2): 167–88.
• Mahmood, Shakeel Ahmed Ibne. 2010. “Public Procurement and Corruption in Bangladesh Confronting the Challenges and Opportunities.” Journal of Public Administration and Policy Research 2(6): 103–11.
• McGuigan, Glenn S. 2011. “기사 (Article) 와 안내문 (Information) [.” The Eletronic Library 34(1): 1–5.
• Neupane, Arjun, Jeffrey Soar, and Kishor Vaidya. 2012. “Evaluating the Anti-Corruption Capabilities of Public Eprocurement in a Developing Country.” Electronic Journal of Information Systems in Developing Countries 55(1).
• Neupane, Arjun, Jeffrey Soar, Kishor Vaidya, and Jianming Yong. 2012. “Role of Public E-Procurement Technology to Reduce Corruption in Government Procurement.” International Public Procurement Conference: 304–34.
• Noor, Muhammad Ali, Malik M.A. Khalfan, and Tayyab Maqsood. 2013. “The Role of Procurement Practices in Effective Implementation of Infrastructure Projects in Pakistan.” International Journal of Managing Projects in Business 6(4): 802–26.
• Pandu Wicaksono, Aditya, Dekar Urumsah, and Faishal Asmui. 2017. “The Implementation of E-Procurement System: Indonesia Evidence.” SHS Web of Conferences 34(7): 10004.
• Pekuri, Laura, Aki Pekuri, and Harri Haapasalo. 2014. “Analysing the Problem of Procurement in Construction.” 22nd Annual Conference of the International Group for Lean Construction: Understanding and Improving Project Based Production, IGLC 2014 (October): 39–50.
• Prakasa, Satria Unggul Wicaksana, Asis, and Mualimin Mochammad Sahid. 2022. “Reduce Corruption in Public Procurement: The Effort Towards Good Governance.” Bestuur 10(1): 33–42.
• Quesada, Gioconda, Marvin E. González, James Mueller, and Rene Mueller. 2010. “Impact of E-Procurement on Procurement Practices and Performance.” Benchmarking 17(4): 516–38.
• Rabuzin, Kornelije, and Nikola Modrušan. 2019. “Prediction of Public Procurement Corruption Indices Using Machine Learning Methods.” IC3K 2019 - Proceedings of the 11th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management 3(Ic3k): 333–40.
• Shabbir, Aqsa. 2014. “Corruption in Infrastructure Procurement - A Study Based on Procurement of Infrastructure Projects in Pakistan.” A thesis submitted to The University of Manchester for the degree of Doctor of Philosophy: 1–248.
• Siddiqui, Arsalan Ahmed et al. 2022. “Effects of E-Procurement on Supply Chain Management in the Modern Era.” International Journal of Social Science & Entrepreneurship 2(2): 202–17.
• Zaidi, Syed Anees Haider, Faisal Mehmood Mirza, Fujun Hou, and Rana Umair Ashraf. 2019. “Addressing the Sustainable Development through Sustainable Procurement: What Factors Resist the Implementation of Sustainable Procurement in Pakistan?” Socio-Economic Planning Sciences 68. https://doi.org/10.1016/j.seps.2018.11.008.
• Zunk, Bernd Markus et al. 2014. “The Role of E-Procurement in the Austrian Construction Industry: Adoption Rate, Benefits and Barriers.” International Journal of Industrial Engineering and Management 5(1): 13–20.

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.