Investigating The Success of Public Procurement Innovation in Government Organization: Does e-Procurement Really Work?

摘要

Despite the lengthy implementation periods of electronic procurement (e-procurement) as one of strategic public innovations, there is still a lack of empirical research on its potential benefits and outcomes in the context of governmental sector. Meanwhile, the examination about how the competitive environment affects e-procurement implementation is also remaining unclear. The present study aims to investigate the relationships between estimated cost of procurement, procurement type, number of auction participants and the efficiency of e-procurement practices in government organization. For this purpose, a dataset provided by the Electronic Procurement Service Unit of Badung Local Government of Bali Province that covers the entire government procurement auction for the years 2012-2017 were analyzed using a linear regression analysis. Results indicated a positive and significant relationship between the estimated cost and the number of auction participants of government e-procurement. In addition, the type of procurement significantly affects the number of auction participants. Procurement auctions for goods and for construction are found to have a stronger effect than the services auctions on the increasing number of auction participants. Finally, the number of auction participants has a positive and significant impact on the efficiency of the procurement in local government organization. These findings have several implications on design of government e-procurement.