Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry

Robert Eadie, Srinath Perera, George Heaney, Jim Carlisle

Research output: Contribution to journalArticle

44 Citations (Scopus)

Abstract

With the increasing use of the internet, E-Procurement and E-Tendering can offer viable alternatives to traditional paper-based processes. Despite the many benefits, and theorising about its pitfalls, little work has been carried out in the UK regarding the importance of the drivers and barriers related to this technology. This study examines the drivers and barriers for E-procurement in construction within Northern Ireland. Drivers and barriers have been ranked using a selection of 70 contractors who have expressed interest in tendering for Roads Service Northern Ireland (RSNI) contracts. RSNI is the agency in Northern Ireland responsible for roads and is one of the major construction clients. The results of this study have been compared with studies of a similar nature carried out in Australia and America in general goods and services e-procurement. Findings in this Northern Ireland study show that the two highest ranked drivers by the contractors were improving communication and reduced administration costs, while the two most important barriers were security of transactions and the uncertainty surrounding the legal issues of e-procurement. Therefore in Northern Ireland the results could be broadly categorised as costing and management issues for the main drivers while legal and technical issues are cited as the main barriers.
LanguageEnglish
Pages103-120
JournalJournal of Information Technology in Construction
Volume12
Publication statusPublished - 1 Feb 2007

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construction industry
public sector
road
communication
cost
services

Keywords

  • e-procurement
  • CITE
  • Construction
  • Drivers and Barriers.

Cite this

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title = "Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry",
abstract = "With the increasing use of the internet, E-Procurement and E-Tendering can offer viable alternatives to traditional paper-based processes. Despite the many benefits, and theorising about its pitfalls, little work has been carried out in the UK regarding the importance of the drivers and barriers related to this technology. This study examines the drivers and barriers for E-procurement in construction within Northern Ireland. Drivers and barriers have been ranked using a selection of 70 contractors who have expressed interest in tendering for Roads Service Northern Ireland (RSNI) contracts. RSNI is the agency in Northern Ireland responsible for roads and is one of the major construction clients. The results of this study have been compared with studies of a similar nature carried out in Australia and America in general goods and services e-procurement. Findings in this Northern Ireland study show that the two highest ranked drivers by the contractors were improving communication and reduced administration costs, while the two most important barriers were security of transactions and the uncertainty surrounding the legal issues of e-procurement. Therefore in Northern Ireland the results could be broadly categorised as costing and management issues for the main drivers while legal and technical issues are cited as the main barriers.",
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author = "Robert Eadie and Srinath Perera and George Heaney and Jim Carlisle",
note = "Reference text: Anderson Consulting (2000). European logistics software guide 2000, Anderson Consulting 67-71 ISBN I-862130-48-5. Bell C. (2001). Exploiting emerging technology corruptly in the NSW public sector, available athttp://pandora.nla.gov.au/pan/21452/20020110/www.icac.nsw.gov.au/pub/public/pub2_42cp.html, last visited May 2006. Carayannis E. and Popescu D. (2005). Profiling a methodology for economic growth and convergence: learning from the EU e-procurement experience for central and eastern European countries, Technovation, Vol. 25 1-14. CITE (2001). e-business for senior managers, available at http://www.constructingexcellence.org.uk/resourcecentre/publications/document.jsp?documentID=115487, last visited October 2006. Choudhury V. (1998). Uses and consequences of electronic markets : An empirical investigation in the aircraft parts industry, MIS Quarterly Vol. 22 No. 4 471 – 507. Constructing Excellence (2006). Website, available at http://www.constructingexcellence.org.uk/, last visited May 2006. Cosh A., Bullock A., Hughes A. and Milner I. (2005). SMEs in Northern Ireland a matched sample comparison with Great Britain, Centre of Business Research, University of Cambridge available athttp://www.cbr.cam.ac.uk/pdf/Northern{\%}20Ireland{\%}20and{\%}20GB{\%}20matched.pdf, last visited June 2006. Davila A., Gupta M. and Palmer R. (2003). Moving procurement systems to the internet: the adoption and use of e-procurement technology models, European Management Journal Vol. 21 No. 1 11-23. Eadie R. (2003). Interim report on e-tendering within Roads Service, internal Roads Service Document. Egan J. (1998). Re-thinking construction, Construction Task Force report, Department of the Environment, Transport and other Regions, London UK. Egbu C., Vines M. and Tookey J. (2004). The role of knowledge management in e-procurement initiatives for construction organisations, ARCOM Proceedings Twentieth Annual Conference 2004 (Khosrowshami,F, editor) Vol. 1. 661 – 671. Erridge A., Fee R. and McIlroy J. (2001). Best practice procurement: public and private sector perspectives, Gover Publishing Company Burlington USA. Eysenbach G. (2004). Improving the quality of web surveys: the checklist for reporting results of internet esurveys (Cherries), Journal of Medical Internet Research. Forrester (2001-2003). ISM/Forrester report on eBusiness, The Institute for Supply Management (ISM) available at http://www.napm.org/ISMReport/Forrester/ last visited, March 2006. Gebauer J., Beam C. and Segev A. (1998). Impact of the internet on purchasing practices, Acquisitions Review Quarterly Vol. 5 No. 2 167-184. Hawking P., Stein A., Wyld D. and Forster S. (2004). E-procurement: is the ugly duckling actually a swan down under?, Asia Pacific Journal of Marketing and Logistics Vol. 16 No. 1. 1-26. InvestNI (2002). Sectoral profile wireless internet Northern Ireland – fresh talent at work, available at http://www.investni.com/access/wirelessinternet.pdf, last visited, April 2006. Jennings D. (2001). Secure trading, Supply Management 6th September 2001 ABI Inform Global, London. 52- 53. Julia-Barcelo R. (1999). Electronic contracts: a new legal framework for electronic contracts: the EU electronic commerce proposal, Computer Law & Security Report Vol. 15 no. 3. Kalakota, R., Tapscott D. and Robinson M. (2001). E-Business 2.0: roadmap for success, 2nd Edition, Addison-Wesley Publishing Company, New Jersey USA. Kheng C. and Al-hawamdeh S. (2002). The adoption of electronic procurement in Singapore, Electronic Commerce Research Vol. 2 Springer Netherlands. 61-73. Kim J. and Shunk D. (2003). Matching indirect procurement process with different B2B e-procurement systems, Computers in Industry Vol. 53. 153-164. Knudsen D. (2003). Aligning corporate strategy, procurement strategy and e-procurement tools, International Journal of Physical Distribution & Logistics Management Vol. 33 No. 8 2003. 720-734. Kong C., Li H. and Love P. (2001). An e-commerce system for construction material procurement, Construction Innovation Vol. 1 No.1. 43-54. Latham, M. (1994). Constructing the team, Joint Government of Industry Review of Procurement and Contractual Arrangements in the U.K. Construction Industry, HMSO, London. Martin J. (2003).E-Procurement and extranets in the UK Construction industry, Conference paper given at FIG Working Week April 13th-17th Paris France. available on-line at http://www.fig.net/figtree/pub/fig_2003/TS_6/TS6_4_Martin.pdf, last visited July 2006. McIntosh. G. and Sloan. B. (2001). The potential impact of electronic procurement and global sourcing within the UK construction industry. Arcom Procceedings 17th Annual Conference 2001. (Akintoye, A., editor) University of Salford, September 2001. 231-239. Minahan, T. and Degan, G. (2001). Best practices in e-procurement, Boston: Aberdeen group. The abridged report, available at www.hedgehog.com/resources/e-ProcurementAbridged.pdf , last visited may 2006. Mukhopadhyay T., Kekre S. and Kalathur S. (1995). Business value of information technology: a study of electronic data interchange, MIS Quarterly Vol. 19 No. 2 137-156. Northern Ireland Audit Office (NIAO) (2005). Northern Ireland audit office report into modernising construction, available at http://www.niauditoffice.gov.uk/pubs/reports/2005/ModernisingConstruction/FullReport.pdf, last visited May 2006. Naoum S. (1995). Dissertation research and writing for construction students, Butterworth Heinemann UK. National Office Information Economy (NOIE) (2001). The internet’s impact on global supply chains, available at http://www.monash.edu.au/casestudies/css/473_is.htm, last visited May 2006. Panayiotou N., Sotiris G. and Tatsiopoulos I. (2004). An e-procurement system for governmental purchasing, International Journal of Production Economics Vol. 90 (2004) 79-102. Pena-Mora F. and Choudary K. (2001). Web-centric framework for secure and legally binding electronic transactions in large-scale A/E/C Projects, Journal of Computing in Civil Engineering October 2001, Vol. 15 No. 4.248-258. Perera S., Eadie R., Heaney G. and Carlisle J. (2006) Developing a model for the analysis of e-procurement capability maturity of construction organisations, proceedings Joint International Conference on Construction Culture, Innovation, and Management (CCIM)2006 British University Dubai. Price Waterhouse Coopers (PWC) (2002). Electronic business outlook: e-markets realism, not pessimism Price Waterhouse Coopers available at http://www.pwc.com/fr/pwc_pdf/pwc_e-markets.pdf, last visited April 2006. Rankin J., Chen Y. and Christian A. (2006). E-procurement in the Atlantic Canadian AEC industry, ITcon Vol. 11, Special Issue e-Commerce in construction , available at http://www.itcon.org/2006/6, last visited November 2006. 75-87. Rawlings J. (1998). Electronic commerce on the internet –part 1, Network Security, Vol. 1998, No. 7, 11-14. Ribeiro F. and Henriques P. (2001). How knowledge can improve e-business in construction, proceedings 2nd International Postgraduate Research Conference in the Built and Human Environment, University of Salford, Blackwell Publishing. 889-403. Romm C. and Sudweeks F. (1998). Doing business electronically: a global perspective of electronic commerce, Springer Verlag Press. Schmidt W. (1997). World-wide web survey research: benefits, potential problems, and solutions, Behaviour Research Methods, Instruments and Computers, Vol..29, No.2. 274-279 Solomon D. (2001). Conducting web-based surveys, in Practical Assessment, Research & Evaluation A peer reviewed electronic journal ISSN 1531-7714 available at http://pareonline.net/getvn.asp?v=7&n=19 , last visited May 2005. Tonkin (2003). E-Procurement in the Public Sector: Story Myth and Legend, a working paper presented to the policy institute at Trinity College Dublin on 18th November 2003. Westcott T. and Mayer P. (2002). Electronic Tendering : Is it delivering? a UK and European perspective, Proceedings of RICS foundation construction and building research conference – COBRA 2002”Nottingham Trent University ISBN 1-84233-074-8. Woking Borough Council (2003). Case study in procurement, available at http://66.102.9.104/search?=cache:qDmzhG_z7BwJ:www.woking.gov.uk/wbc/ieg/procurement2.pdf+w oking+borough+council+case+study+in+procurement&hl=en, last visited December 2005. Wong C. and Sloan B. (2004). Use of ICT for e-procurement in the UK construction industry: a survey of SMES readiness, ARCOM Proceedings Twentieth Annual Conference 2004 (Khosrowshami,F, editor) September 1-3 Vol. 1. 620 – 628.",
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Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry. / Eadie, Robert; Perera, Srinath; Heaney, George; Carlisle, Jim.

In: Journal of Information Technology in Construction, Vol. 12, 01.02.2007, p. 103-120.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Drivers and barriers to public sector e-procurement within Northern Ireland’s construction industry

AU - Eadie, Robert

AU - Perera, Srinath

AU - Heaney, George

AU - Carlisle, Jim

N1 - Reference text: Anderson Consulting (2000). European logistics software guide 2000, Anderson Consulting 67-71 ISBN I-862130-48-5. Bell C. (2001). Exploiting emerging technology corruptly in the NSW public sector, available athttp://pandora.nla.gov.au/pan/21452/20020110/www.icac.nsw.gov.au/pub/public/pub2_42cp.html, last visited May 2006. Carayannis E. and Popescu D. (2005). Profiling a methodology for economic growth and convergence: learning from the EU e-procurement experience for central and eastern European countries, Technovation, Vol. 25 1-14. CITE (2001). e-business for senior managers, available at http://www.constructingexcellence.org.uk/resourcecentre/publications/document.jsp?documentID=115487, last visited October 2006. Choudhury V. (1998). Uses and consequences of electronic markets : An empirical investigation in the aircraft parts industry, MIS Quarterly Vol. 22 No. 4 471 – 507. Constructing Excellence (2006). Website, available at http://www.constructingexcellence.org.uk/, last visited May 2006. Cosh A., Bullock A., Hughes A. and Milner I. (2005). SMEs in Northern Ireland a matched sample comparison with Great Britain, Centre of Business Research, University of Cambridge available athttp://www.cbr.cam.ac.uk/pdf/Northern%20Ireland%20and%20GB%20matched.pdf, last visited June 2006. Davila A., Gupta M. and Palmer R. (2003). Moving procurement systems to the internet: the adoption and use of e-procurement technology models, European Management Journal Vol. 21 No. 1 11-23. Eadie R. (2003). Interim report on e-tendering within Roads Service, internal Roads Service Document. Egan J. (1998). Re-thinking construction, Construction Task Force report, Department of the Environment, Transport and other Regions, London UK. Egbu C., Vines M. and Tookey J. (2004). The role of knowledge management in e-procurement initiatives for construction organisations, ARCOM Proceedings Twentieth Annual Conference 2004 (Khosrowshami,F, editor) Vol. 1. 661 – 671. Erridge A., Fee R. and McIlroy J. (2001). Best practice procurement: public and private sector perspectives, Gover Publishing Company Burlington USA. Eysenbach G. (2004). Improving the quality of web surveys: the checklist for reporting results of internet esurveys (Cherries), Journal of Medical Internet Research. Forrester (2001-2003). ISM/Forrester report on eBusiness, The Institute for Supply Management (ISM) available at http://www.napm.org/ISMReport/Forrester/ last visited, March 2006. Gebauer J., Beam C. and Segev A. (1998). Impact of the internet on purchasing practices, Acquisitions Review Quarterly Vol. 5 No. 2 167-184. Hawking P., Stein A., Wyld D. and Forster S. (2004). E-procurement: is the ugly duckling actually a swan down under?, Asia Pacific Journal of Marketing and Logistics Vol. 16 No. 1. 1-26. InvestNI (2002). Sectoral profile wireless internet Northern Ireland – fresh talent at work, available at http://www.investni.com/access/wirelessinternet.pdf, last visited, April 2006. Jennings D. (2001). Secure trading, Supply Management 6th September 2001 ABI Inform Global, London. 52- 53. Julia-Barcelo R. (1999). Electronic contracts: a new legal framework for electronic contracts: the EU electronic commerce proposal, Computer Law & Security Report Vol. 15 no. 3. Kalakota, R., Tapscott D. and Robinson M. (2001). E-Business 2.0: roadmap for success, 2nd Edition, Addison-Wesley Publishing Company, New Jersey USA. Kheng C. and Al-hawamdeh S. (2002). The adoption of electronic procurement in Singapore, Electronic Commerce Research Vol. 2 Springer Netherlands. 61-73. Kim J. and Shunk D. (2003). Matching indirect procurement process with different B2B e-procurement systems, Computers in Industry Vol. 53. 153-164. Knudsen D. (2003). Aligning corporate strategy, procurement strategy and e-procurement tools, International Journal of Physical Distribution & Logistics Management Vol. 33 No. 8 2003. 720-734. Kong C., Li H. and Love P. (2001). An e-commerce system for construction material procurement, Construction Innovation Vol. 1 No.1. 43-54. Latham, M. (1994). Constructing the team, Joint Government of Industry Review of Procurement and Contractual Arrangements in the U.K. Construction Industry, HMSO, London. Martin J. (2003).E-Procurement and extranets in the UK Construction industry, Conference paper given at FIG Working Week April 13th-17th Paris France. available on-line at http://www.fig.net/figtree/pub/fig_2003/TS_6/TS6_4_Martin.pdf, last visited July 2006. McIntosh. G. and Sloan. B. (2001). The potential impact of electronic procurement and global sourcing within the UK construction industry. Arcom Procceedings 17th Annual Conference 2001. (Akintoye, A., editor) University of Salford, September 2001. 231-239. Minahan, T. and Degan, G. (2001). Best practices in e-procurement, Boston: Aberdeen group. The abridged report, available at www.hedgehog.com/resources/e-ProcurementAbridged.pdf , last visited may 2006. Mukhopadhyay T., Kekre S. and Kalathur S. (1995). Business value of information technology: a study of electronic data interchange, MIS Quarterly Vol. 19 No. 2 137-156. Northern Ireland Audit Office (NIAO) (2005). Northern Ireland audit office report into modernising construction, available at http://www.niauditoffice.gov.uk/pubs/reports/2005/ModernisingConstruction/FullReport.pdf, last visited May 2006. Naoum S. (1995). Dissertation research and writing for construction students, Butterworth Heinemann UK. National Office Information Economy (NOIE) (2001). The internet’s impact on global supply chains, available at http://www.monash.edu.au/casestudies/css/473_is.htm, last visited May 2006. Panayiotou N., Sotiris G. and Tatsiopoulos I. (2004). An e-procurement system for governmental purchasing, International Journal of Production Economics Vol. 90 (2004) 79-102. Pena-Mora F. and Choudary K. (2001). Web-centric framework for secure and legally binding electronic transactions in large-scale A/E/C Projects, Journal of Computing in Civil Engineering October 2001, Vol. 15 No. 4.248-258. Perera S., Eadie R., Heaney G. and Carlisle J. (2006) Developing a model for the analysis of e-procurement capability maturity of construction organisations, proceedings Joint International Conference on Construction Culture, Innovation, and Management (CCIM)2006 British University Dubai. Price Waterhouse Coopers (PWC) (2002). Electronic business outlook: e-markets realism, not pessimism Price Waterhouse Coopers available at http://www.pwc.com/fr/pwc_pdf/pwc_e-markets.pdf, last visited April 2006. Rankin J., Chen Y. and Christian A. (2006). E-procurement in the Atlantic Canadian AEC industry, ITcon Vol. 11, Special Issue e-Commerce in construction , available at http://www.itcon.org/2006/6, last visited November 2006. 75-87. Rawlings J. (1998). Electronic commerce on the internet –part 1, Network Security, Vol. 1998, No. 7, 11-14. Ribeiro F. and Henriques P. (2001). How knowledge can improve e-business in construction, proceedings 2nd International Postgraduate Research Conference in the Built and Human Environment, University of Salford, Blackwell Publishing. 889-403. Romm C. and Sudweeks F. (1998). Doing business electronically: a global perspective of electronic commerce, Springer Verlag Press. Schmidt W. (1997). World-wide web survey research: benefits, potential problems, and solutions, Behaviour Research Methods, Instruments and Computers, Vol..29, No.2. 274-279 Solomon D. (2001). Conducting web-based surveys, in Practical Assessment, Research & Evaluation A peer reviewed electronic journal ISSN 1531-7714 available at http://pareonline.net/getvn.asp?v=7&n=19 , last visited May 2005. Tonkin (2003). E-Procurement in the Public Sector: Story Myth and Legend, a working paper presented to the policy institute at Trinity College Dublin on 18th November 2003. Westcott T. and Mayer P. (2002). Electronic Tendering : Is it delivering? a UK and European perspective, Proceedings of RICS foundation construction and building research conference – COBRA 2002”Nottingham Trent University ISBN 1-84233-074-8. Woking Borough Council (2003). Case study in procurement, available at http://66.102.9.104/search?=cache:qDmzhG_z7BwJ:www.woking.gov.uk/wbc/ieg/procurement2.pdf+w oking+borough+council+case+study+in+procurement&hl=en, last visited December 2005. Wong C. and Sloan B. (2004). Use of ICT for e-procurement in the UK construction industry: a survey of SMES readiness, ARCOM Proceedings Twentieth Annual Conference 2004 (Khosrowshami,F, editor) September 1-3 Vol. 1. 620 – 628.

PY - 2007/2/1

Y1 - 2007/2/1

N2 - With the increasing use of the internet, E-Procurement and E-Tendering can offer viable alternatives to traditional paper-based processes. Despite the many benefits, and theorising about its pitfalls, little work has been carried out in the UK regarding the importance of the drivers and barriers related to this technology. This study examines the drivers and barriers for E-procurement in construction within Northern Ireland. Drivers and barriers have been ranked using a selection of 70 contractors who have expressed interest in tendering for Roads Service Northern Ireland (RSNI) contracts. RSNI is the agency in Northern Ireland responsible for roads and is one of the major construction clients. The results of this study have been compared with studies of a similar nature carried out in Australia and America in general goods and services e-procurement. Findings in this Northern Ireland study show that the two highest ranked drivers by the contractors were improving communication and reduced administration costs, while the two most important barriers were security of transactions and the uncertainty surrounding the legal issues of e-procurement. Therefore in Northern Ireland the results could be broadly categorised as costing and management issues for the main drivers while legal and technical issues are cited as the main barriers.

AB - With the increasing use of the internet, E-Procurement and E-Tendering can offer viable alternatives to traditional paper-based processes. Despite the many benefits, and theorising about its pitfalls, little work has been carried out in the UK regarding the importance of the drivers and barriers related to this technology. This study examines the drivers and barriers for E-procurement in construction within Northern Ireland. Drivers and barriers have been ranked using a selection of 70 contractors who have expressed interest in tendering for Roads Service Northern Ireland (RSNI) contracts. RSNI is the agency in Northern Ireland responsible for roads and is one of the major construction clients. The results of this study have been compared with studies of a similar nature carried out in Australia and America in general goods and services e-procurement. Findings in this Northern Ireland study show that the two highest ranked drivers by the contractors were improving communication and reduced administration costs, while the two most important barriers were security of transactions and the uncertainty surrounding the legal issues of e-procurement. Therefore in Northern Ireland the results could be broadly categorised as costing and management issues for the main drivers while legal and technical issues are cited as the main barriers.

KW - e-procurement

KW - CITE

KW - Construction

KW - Drivers and Barriers.

M3 - Article

VL - 12

SP - 103

EP - 120

JO - Journal of Information Technology in Construction

T2 - Journal of Information Technology in Construction

JF - Journal of Information Technology in Construction

SN - 1874-4753

ER -