Exploring the impact of electronic procurement on buyer-supplier relationship in the Jordanian pharmaceutical industry: an empirical study

Noor Al-Ma'aitah, Osama Al-Nahleh and Mohammad A.K. Alsmairat

International Journal of Procurement Management, 2024, vol. 20, issue 1, 85-105

Abstract: This research paper investigates the impact of electronic procurement on the buyer-supplier relationship in the pharmaceutical industry sector of Jordan. The study adopts a quantitative approach and utilises an online questionnaire to collect data from 171 managers working in different managerial levels in various pharmaceutical companies and factories in Jordan. The electronic procurement system is implemented with six applications: e-tendering, e-ordering, e-invoicing, e-auction, e-sourcing and e-informing. Structural equation modelling is used to test the hypotheses, and the analysis reveals that most hypotheses were accepted, except for e-informing, which was rejected. The study suggests that pharmaceutical companies and factories in Jordan should adopt electronic procurement systems to improve procurement processes and enhance their relationship with suppliers. Electronic procurement can increase efficiency, reduce costs, and improve communication with suppliers, resulting in a more productive and collaborative buyer-supplier relationship.

Keywords: e-procurement; electronic procurement; building buyer-supplier relationship; pharmaceutical industry; Jordan. (search for similar items in EconPapers)
Date: 2024
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