Many scholars on E-procurement are investigating causes and factors to explain why the rate and speed of adoption is frequently very slow. This paper explores the organizational and environmental “E-Readiness” variables that might affect E-procurement adoption in Kingdom of Bahrain. Using Molla and Licker (2005)’s Perceived E-Readiness Model (PERM), this study investigated the effects of Perceived Organizational E-Readiness factors (POER) and Perceived External E-Readiness factors (PEER) on the adoption of E-procurement in Kingdom of Bahrain. Data were collected from 71 of ministries, authorities and some private companies. Using discriminant function, this research found that the external factors (Market Forces, Supporting Industries, and Government) affect mainly the initial adoption while the internal factor (Awareness, Commitment,Governance, Resources including human, business and technology resources) effect of the institutional adoption. The outcome of this research provides insights of factors to be considered at different adoption stage for a better E-procurement readiness in the Kingdom of Bahrain.
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