6

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 APJMMR, Vol.3 (10), OCTOBER (2014), pp. 49-69 Online available at indianresearchjournals.com

AN E- PROCUREMENT USAGE ANALYSIS IN INDIAN

AUTOMOBILE INDUSTRY

DR. MERAJ NAEM*; DR. MOHAMMAD TARIQUE KHAN**;

DR. MEHBOOB UL HASSAN***

*ASST. PROFESSOR,

SCHOOL OF BUSINESS ADMINISTRATION,

AL DAR UNIVERSITY COLLEGE, DUBAI.

**ASST. PROFESSOR,

JAZAN UNIVERSITY,

SAUDI ARABIA.

*** PROFESSOR,

SCHOOL OF BUSINESS ADMINISTRATION,

AL DAR UNIVERSITY COLLEGE, DUBAI.

ABSTRACT

The desktop computing in the 1980s and 1990s served as catalyst to the reengineering

movement, the Internet and WWW can be considered as the catalyst for the radical change in

business context and business process viewpoint what Keen and McDonald term as e-process perspective. (Kim & Ramkaran) Globalization of market, increased competition, reducing gap between products in terms of

quality and price are compelling the industry to rethink about how to manage business operations

more efficiently and effectively. Since scope for improvement within the organization is

decreasing; the companies are looking for business activities beyond the organizations boundary (SP Sarmah et al, 2005).

The purpose of this research is to analyze the E-Procurement usage in the supply chain

management of Indian Automobile Industry occurring between the buyer and its established

suppliers1.

A quantitative approach has been chosen for the purpose of this study as quantitative approach is

one which is based on numbers and statistics. The sampling tool adopted is the survey method

Questionnaire format for sampling and SPSS is the statistical tool for data handling.

In this study the particular case of the E-Procurement usage in the supply chain management of

Indian Automobile Industry occurring between the buyer and its established suppliers is to be

considered. Similar type of study has been conducted by various researchers internationally in

different context by applying case study method while this study is based on survey method

specifically in Indian context on the e-procurement of Automobile Industry where primary

samples were collected thru questionnaire method.

KEY WORDS: Procurement, e-procurement, e-supply chain, usage, automobile industry.


REFERENCES

1. Aberdeen Group, 2001, e-Procurement: Finally Ready for Prime Time, Market View

Point, Volume 14, (http://www.expensewatch.com/IPLS/pdfs/prime_time.pdf) 2002,

pp.151-166.IFS Central and Eastern Europe, SYSTEMS INTEGRATION 2002.

2. Agarwal D.K. - A Text Book of Logistics and Supply chain management (Macmillan, 1st

Ed.).

3. Amit, R. and Zott, C. (2001), Value creation in e-business, Strategic Management

Journal, Vol. 22, No. 6-7, pp. 493-520.

4. Andrew, James P., 2001, Making e-procurement Real-Now, The Boston Consulting

Group, Inc., http://www.bcg.com/publications/files/Making_E_Procurement

Real_Now_Jan_01.pdf)

5. Arminas, D., 2001.Hard ROI prompts revision of e-procurement rationale.

SupplyManagement, Vol: November, pp 10-10.

6. Arthur Andersen. .eProcurement: Elektronische Beschaffung in der deutschen Industries.

Status and Trends. Arthur Andersen Business Consulting.

http://www.arthurandersen.com/resource2.nsf/vAttachLU/AA_GER_MO_BC_

7. Auramo, Jaana, Jouni Kauremaa and Kari Tanskanen, 2005, Benefits of IT in supply

chain management: an explorative study of progressive companies, International Journal

of Physical Distribution & Logistics Management Vol. 35 No. 2, 2005, pp. 82-100

8. AUTOFACTS, 2004, "Navigating the risks of the global automotive industry", 2004

Global Automotive financial Review, PricewaterhouseCoopers,

(http://www.pwcglobal.com/extweb/pwcpublications.nsf/docid/17d562ec1e21ffcd

85257080004c13dd)

9. Autofacts, 2005 Q3, Global Light Vehicle Market, PricewaterhouseCoopers,

(http://www.autofacts.com)

10. Automotive Component Manufacturing Association (2007), Engine of Growth Driving

the Indian Manufacturing Sector, Automotive Component Manufacturing Association,

New Delhi

11. Avery, S, (2002) E-procurement, helps set strategy that cuts, purchasing.p131, 25 March

7, 2002.


12. Avlonitis, George J. and Despina A. Karayanni, 2000, The Impact of Internet Use on

Business-to-Business Marketing Examples from American and European Companies,

Industrial Marketing Management 29, pp.441459.

13. Bakowski Marcin 2002, C-commerce. Would mixing ERP, CRM, e-Procurement and

SCM be an efficient strategy for the future? Business Solution Management.

14. Balchin, J., 2001.Strategic enlightenment. Logistics Europe, Issue: September, pp 16-19.

15. Becker, (2001).J.E-Business. mit oder ohne Intermediation. Neue Spieler im Wettbewerb,

Industries Management (17:1), 2001, pp.9-13.

16. Benko, Cathleen and Warren McFarlan, (2003). Metamorphosis in the auto industry,

STRATEGY & LEADERSHIP, VOL. 31 NO. 4 2003, pp. 4-8.

17. Beri G.C - Marketing Research (Tata Mc Graw Hill, 4th Edition)

18. Boston Consulting, (2001). Report on the Canadian E-business Opportunity Roundtable,

Retrieved April 2002, from

http://www.bcg.com/practice/022201_FINAL_Canada_Roundtable_English.pdf

19. BuyIT Best Practice Network Report 2002, Building the Business Case for e-

Procurement/ROI, Issued by the BuyIT Best Practice Network October 2002.

20. Byline Research, John Adamson, Tranmit plc, n.d, Procurement management systems: a

corporate black hole, Byline Research.

21. Case study Research: Design and Methods. Third edition, Sage publications, Inc.

22. Cavinato, J L., 1999. Fitting purchasing to the five stages of strategic management.

European Journal of Purchasing and Supply Management, Issue: 5, pp 75-83.

23. Changing shapes of supply chains: How the Internet could lead to a more integrated

procurement function. Fisher Center Working Paper 01-WP-1041, The Fisher Center for

Information Technology and Marketplace Transformation (CITM), Haas School of

Business, University of California, Berkeley, 2001.

24. Chaffey, Dave, ed. 2004, E-business and E-commerce Management, 2nd ed., Prentice

Hall

25. Chopra Sunil and Peter Meindl - Supply chain management (Pearson, 3rd Ed.)


26. Christodouleas, Jim, Karl Dickel, Chris Keevil, 2001, Supply Chain Strategies for the

Internet Era, The Boston Consulting Group,

(http://www.bcg.com/publications/files/Supply_Chain_Strategies_Jun_ofa.pdf).

27. Cisco Systems, 2002, Technical Implementation Guide: E-Procurement, Cisco Systems,

Inc., (www.cisco.com/warp/public/779/smbiz/iroadmap/us/en/sitewide_ assets/docs/

ep_tech.pdf).

28. Confederation of Indian Industry & KPMG (2006), Indian Automotive Supply Chain, A

Discussion Paper

29. Confederation of Indian Industry (12th June 2006), Industry Monitor, Karnataka,

www.ciionline.org

30. Cooper and Schindler - Business Research Methods (Tata Mc Graw Hill, 9th Edition)

31. Croom, S.R and Johnston R.,(2003).Industrial Journal of Service Industry

management,VOL:14,No.5,2003,pp.539-555.MCB UP limited.

32. Croom, S.R., 2005, The impact of e-business on supply chain management, An empirical

study of key developments, International Journal of Operations & Production

Management, Vol. 25 No. 1, 2005, pp. 55-73

33. Curran, T., and Ladd, A. SAP R/3, 2000. Business Blueprint: Understanding Enterprise

Supply Chain Management (2nd ed.), Prentice-Hall, and Upper Saddle River, NJ, 2000.

34. Dai, Q. and Kauffman, R.J., 2005, To Be or Not to B2B: Evaluating Managerial Choices

for E-Procurement Channel Adoption, Info. Tech. Mgmt., 2005, in press.

35. Davila, A., Gupta, M., and palmer, R.J (2002), Moving procurement systems to the

Internet: the adoption and use of E- procurement technologies models (June 2002)

Stanford GSB Research Paper No.1742. http://ssrn.com/abstract=323923.

36. De Boer, L., Harnica, J and Heijboer, G (2002), A Conceptual model for assessing the

impact of electronic procurement, European journal of purchasing and supply chain

management, vol.8, no.1, p p23-33.

37. De Burca, Sean, Brian Fynes and Donna Marshall, 2005, Strategic technology adoption:

extending ERP across the Supply chain, The Journal of Enterprise Information

Management, Vol. 18 No. 4, 2005, pp. 427-440.

38. Denzin, N.K. & Lincoln, Y.S. (1994). Handbook of qualitative research. Thousand Oaks,

CA.


39. Deutsche Bank, Roland Berger Strategy Consultants. 2000, "Automotive E-Commerce, A

Reality Check"., (http://www.rolandberger.com/documents

/1907009/RB_B2B_E_commerce_in_the_Automotive_Industry_A_vir_2000.pdf).

40. Dietz, Frank, Nikolaus S. Lang, Andreas Maurer, 2004, Beyond Cost Reduction:

Reinventing the Automotive OEM-Supplier Interface", The Boston Consulting Group.

http://www.bcg.com/publications/files/Beyond_ Cost_Reduction_Mar_04.pdf

41. Dignum, Frank, 2002, E-commerce in production: some experiences, integrated

manufacturing systems, 13/5 [2002], pp. 283-294.

42. Dittler, T., Heidingsfelder, M., Lunani, 2000, M.E-Commerce in the Automotive

Industry. A (virtual) reality. Deutsche Bank (eds.), 2000,

http://www.rolandberger.com/documents/1907009/B2BAUTO2_RolandBerger.pdf.

43. Dobler, Donald W. and David N. Burt, ed. 1996, Purchasing and Supply Management --

Text and Cases, 6th ed., McGraw-Hill, New York.

44. Dolmetsch, 2000, R. eProcurement: Einsparungspotentiale im Einkauf, Springer, Berlin,

2000.

45. e-business Watch, 2005, ICT and Electronic Business in the Automotive Industry, ICT

adoption and e-business activity in 2005, Sector Report No. 06 (July 2005),

(http://www.ebusiness-watch.org/resources/automotive/automotive.htm).

46. Economist (2000): The next Revolution, Economist, June 24, 2000, Vol.355, No.8176, S-

1.

47. Eisenmann, T. (2002). Internet Business Models, Boston: McGraw-Hill, Irwin.

48. Elliff, Scott A. (2000), E-Procurement: New Dimensions in Electronic Commerce and

Supply Chain Management

49. Ellram, L. M. and Zsidisin, G. A. 2002. Factors that drive purchasing and supply

management's use of information technology. Engineering Management, IEEE

Transactions on, VOL: 49, Issue: 3.

50. Emory CW, Cooper CR (1991), Business Research Methods (4 thed.). Homewood,

ILL. Richard D. Irwin.

51. Ernst & Young, 2001, Enabling E-Commerce: E-Procurement - Boosting the Bottom

Line. (http://www.ey.com/global/download.nsf/Ireland/eprocurement/$ file/e-

procurement.pdf).


52. Essig, M. and Arnold, U., 2001. Electronic Procurement in Supply Chain Management:

Information Economics-Based Analysis of Electronic Markets. The Journal of Supply

Chain Management, Issue: Fall.

53. European Monitoring Center of Change, 2004, Trends and drivers of change in the

European automotive industry: Mapping report, European Foundation for the

Improvement of Living and Working Conditions, http://www.emcc.eurofound.eu.int/.

54. Eyholzer, K., Hunziker, D., 2000. The Use of the Internet in Procurement: An Empirical

Analysis. Konferenzbeitrag, Hansen, H-R. (eds.), Proceedings of the 8th

European

Conference of Information Systems, 3rd-5th July 2000, Vienna, pp. 335. 342.

55. Finch, Ross (2004). The Influences of E-Business Technologies on Buyer-Supplier

Relationships in the Automotive Industry. Research Framework, European School on

New Institutional Economics 2004, Universiy of Bath, England.

56. Fricke, M., Hoppen, N., Knig, W., and Pfitzer, D. 2002. The Role of Bilateral B2B e-

Procurement in the European Automotive Industry Results from an Empirical Survey,

In: Dallas, TX: Proceedings of AMCIS 2002.

57. Gadde, L.E. and Hakansson, H. (2001), Supply chain Network Strategies, John Wiley &

Sons, Chichester.

58. Gebauer, J. and A. Segev, (1998). Assessing Internet-based procurement to support the

virtual enterprise, Proceedings of the CALS Expo International and 21st Century

Commerce: Global Business Solutions for the New Millennium, Long Beach, CA, USA,

26-29 October 1998. http://www.haas.berkeley.edu/citm/publications/papers /cals.pdf

59. Gebauer, J., Beam, C., & Segev, S., (1998). Impact of the Internet on Procurement,

Acquisition Review Quarterly, 5(2), pp 167-184.

60. Guba EG., Lincoln YS., Denzin NK., Lincoln YS. (1994) Handbook of Qualitative

Research, Sage.

61. Herberling, M.E. (1993). The rediscovery of modern purchasing, International Journal of

Purchasing and Materials Management, 29, 48-53.

http://groups.haas.berkeley.edu/citm/publications/papers/Wp-1041.pdf.

62. Hokey Min and William P. Galle, 1999, Electronic commerce usage in business-

tobusiness purchasing, International Journal of Operations & Production Management,

Vol. 19 No. 9, pp. 909-921.


63. Indian Brand Equity Foundation (2008), Automotive Industry Update April June 2008,

Indian Brand Equity Foundation

64. John Adamson, e-procurement comes of age, Tranmit plc.

(http://www.touchbriefings.com/pdf/967/36.pdf)

65. John, G., 2001.Reality Returns. Supply Management, Issue: September.

66. Judith E. Payne, E-Commerce Readiness for SMEs in Developing Countries: A Guide for

Development Professionals, LearnLink for USAID, and Academy for Educational

Development. (http://learnlink.aed.org/Publications/Concept_Papers/ ecommerce

readiness.pdf)

67. Kaiser Family Foundation (21st June 2008), www.globalhealthfacts.org, Kaiser Family

Foundation

68. Kalakota, R, &Robinson, M. (2001). E-Business 2.0: Roadmap for Success. Boston:

Addison-Wesley.

69. Kalakota, R.; Whinston, A.B, (1999): Electronic Commerce: A Manager's Guide,

Addison-Wesley. Reading, MA.

70. Kaplan, S. and Sawhney, M. (2000), E-hubs: the new B2Bmarketplaces, Harvard

Business Review May- June 2000, and PP.97-103.

71. Kauffman, R. J., and Wang, Y. M., 1999. The Network Externalities Hypothesis and

Competitive Network Growth, work paper, MIS Research Center, Carlson School of

Management, University of Minnesota, 1999.

72. Kim, Henry M. and Rajani Ramkaran, 2004, Best practices in e-business process

management Extending a re-engineering, framework, Business Process Management

Journal Vol. 10 No. 1, 2004, pp. 27-43.

73. Klein, Arnd and Helmut Krcmar, 2005, DCXNET: e-transformation at DaimlerChrysler,"

Journal of Information Technology, pp.114.

74. Knudsen, D., Lindroth, R., E., 2000.Strategies for Electronic procurement, Possibilities

and Risks, E-work and E-business, Madrid, Spain.

75. Knudsen, Daniel (2003). Improving Procurement Performance with E-business

mechanisms, Lund University, Lund, Sweden.


76. Kothari C R Research Methodology Methods & Techniques (New Age International

Publishers, 2nd

Edition, 2004)

77. KPMG International (2007), KPMGs India Automotive Study 2007, KPMG

78. Krishnan Dr. Gopal - Material Management, (Pearson,New Delhi, 5th Ed.)

79. LEONARD Steven R. 2000, ELECTRONIC PROCUREMENT, European Commission's

IST Programme eBusiness and eWork, (www.lsi.upc.edu/~jmpujol/gsel/e-

procurement.pdf).

80. LKW (15th October 2007), Sector Watch Automobiles, An Independent Research

Initiative, LKW

81. Louise Jung, M. and Widmark P. (2004), IT in Supplier portfolio management utilization

and influence case studies in Automotive industry, Department of business administration

and social science, Division of industrial marketing and ecommerce, Lulea university of

technology, Sweden.

82. Marshall C, Rossman G (1999) - Designing qualitative research (3rd Ed.) Thousand

Oaks-CA: Sage.

83. Mattsson, S. -A, 2002.Embracing Change. Management strategies in the e-economy era.

S-A Mattsson, Intentia International AB.

84. McKie, Stewart, 2001, E-business best practices: leveraging technology for business

advantage, Wiley, New York.

85. Mentzer, J. (2001). Defining Supply Chain Management. Journal of Business Logistics,

fall 2001, pp.1-37.

86. Miles, M.B. and Huberman, A.M. (1994), Qualitative Data Analysis, Sage, Thousand

Oaks, CA.

87. Minahan, T. & Degan, G. (2001). Best Practices in e-Procurement, Boston: Aberdeen

Group.

88. Monczka, R., Trent, R., and Handfield, R., 2001. Purchasing and Supply Chain

Management. South-Western, California, Ohio.

89. Morell, Jonathan, Bernard F. Swiecki, 2001, A. E-readiness of the Automotive Supply

Chain: Just How Wired is the Supplier Sector? Center for Automotive Research Center

for Electronic Commerce, (http://www.cargroup.org/ereadiness.asp).


90. Murtaza, Mirza B., Vipul Gupta, Richard C. Carroll, 2004, E-marketplaces and the future

of supply chain management: opportunities and challenges, Business Process

Management Journal, Vol. 10 No. 3, pp. 325-335.

91. Nam C., 1998. Increase your profit margin through electronic procurement, Journal of

Internet Purchasing, Vol. 1, No.3, 1998. http://www.arraydev.com/commerce/JIP/9802-

01 http://www.sme.gcn.gov.hk/english/smehk.htm

92. Narayanan, B, P Vashisht (2008), Determinants of Competitiveness of the Indian Auto

industry, Indian Council for Research on International Economic Relations, Working

Paper No 201, New Delhi

93. National Automotive Testing and R&D Infrastructure Project (June 2007), Driving India

into the Future Volume II, NATRIP, New Delhi

94. National Manufacturing Competitiveness Council (2006), The National Strategy for

Manufacturing, National Manufacturing Competitiveness Council, New Delhi

95. NECCC E-Procurement Work Group, 2002, e-Procurement: Failure to Implement, Not

an Option! (http://www.ec3.org/Downloads/2002/eProcurement.pdf).

96. Neef, D. (2001), E-procurement. From Strategy to Implementation, Prentice-

Hall/Financial Times, London.

97. Novack, R. A. and Simco, S. W., 1991.The Industrial Procurement Process: A supply

Chain Perspective. Journal Of Business Logistics, Vol: 12,Isuue: 1.

98. Patton MQ 1990. Qualitative evaluation and research methods. Newbury Park, Calif.:

Sage Publications.

99. Peoplesoft, The promise and the Reality, April 2001

http://www.peoplesoft.com/media/en/pdf/2345-9090.pdf,available:2002-05-07

100. Porter, M.E. (1985), And Competitive Advantage: Creating and Sustaining

Superior Performance, Free Press, New York, NY.

101. Price Waterhouse Coopers (PWC) (2002). Electronic Business Outlook: e-

Markets Realism, not Pessimism. Price Waterhouse Coopers, Retrieved May 15th, 2002,

from http://pwcglobal.com/ebusinessinsights.

102. PricewaterhouseCoopers, N.D., Supplier Survival: Survival in the Modern

Automotive Supply Chain, (http://www.pwcglobal.com/extweb/ pwcpublications.nsf

/DocID/4EFBA3D2E36509CC85256BDE006BEC7B ).


103. Prime Consulting Group (2002). Reverse Auctions: An Industry White Paper

from the International Housewares Association Reverse Auction Task Force.

104. Puschmann, Thomas and Rainer Alt, 2005, Successful use of e-procurement in

supply chains, Supply Chain Management: An International Journal, 10/2, pp.122 133.

105. Raghuram G. (I.I.M.A.) - Logistics and Supply Chain Management (Macmillan,

1st

Ed.)

106. Rayport Jeffrey, Jaworski Bernard (2001), Introduction to E-commerce, McGraw

Hill Higher Education.

107. Reynolds, P.D. (1971), A Primer in theory construction. New York: Macmillan

Publishing Co.

108. Robinson, P.J., Farris, C. and Wind, Y. (1967), Industrial Buying and Creative

Marketing, Allynd Bacon, Boston, MA.

109. Sahay B.S. - Supply Chain Management (Macmillan, 1st Ed.)

110. Schmidt, B.Elekronische Mrkte. WIRTSCHAFTSINFORMATIK (35:5), 1993,

pp. 465 - 480.September 2002.Studie_eProcurement/$File/Study_eProcurment _04_

2001.pdf.

111. Shaw M. 2004, Introduction to B2B e-Commerce Research. International Journal

on Electronic Commerce, (8) 3 2004.

112. Shaw M., J. Gebauer 2004, Success Factors and Benefits of Mobile Business

Applications: Results from a Mobile E-Procurement Study. International Journal on

Electronic Commerce, (8) 3 2004.

113. Shaw M.J, and Subramaniam C., 2002, The Effects of Process Characteristics on

the Value of B2B E-Procurement, Working Paper CITEBM-02-02. Center for IT and e-

Business Management, University of Illinois at Urbana/Champaign, 2002.

http://citebm.cba.uiuc.edu/ecforum/Process-effects-B2Bvalue.pdf.

114. Stein, Andrew and Paul Hawking, 2002, e-Procurement Practices: An Australian

Survey, ERP Research Group All Rights Reserved.

(http://www.business.vu.edu.au/sap/Documents/eProcsurveyReport.pdf)

115. Sullivan, T.J., 2001, Method of social research, Fort Worth, TX; London:

Harcourt CollegePublishers.


116. Supply Chain Management in the E-Business Era, An Investigation into Supply

Chain Strategies, Practices and Progress in E-Business Adoption, Warwick Business

School, University of Warwick, Coventry, UK,

(http://easyweb.easynet.co.uk/simon.croom/research/research_start.html).

117. The Economic Times (10th April, 2008), Auto industry set to grow fivefold by

2016, The Economic Times

118. Thomson, D. and Singh, M.A, 2001, Macro Level Business Model for E-Enabled

Procurement, CollEcTeR, December, 2001, pp.227-237.Thousand Oaks, CA: Sage.

119. Tonkin C., 2003.E-PROCUREMENT IN THE PUBLIC SECTOR: STORY,

MYTH AND LEGEND, the Policy Institute, and Trinity College Dublin.

120. Tranmit, 2002, Purchase-to-pay: no change here?, Tranmit plc and EP

News.,(http://www.tranmit.com/pdf/Nochangehere.pdf).

121. "Uncovering the strategic domain of e-procurement," in 11th Annual International

Purchasing and Supply Education and Research Association Conference, Twente

University, Netherlands.

122. United Nations Environment Programme, 2002, Industry as a partner for

sustainable development, Automotive, Association des Constructeurs Europeans d

Automobiles and United Nations Environment Programme.

123. Van Weele, A., 2002.Purchasing and Supply Chain Management, Analysis,

Planning and Practice. Thomson Learning.

124. Versendaal Johan, Beukers Mark, Batenburg Ronald (2005). Business Alignment

in the Procurement Domain. Institute of information and computing sciences, Utrecht

University.

125. Ware, L.C, (2002), by the numbers CIO15, 36 April 1, 2002. Wendein, Christine

Grech (2001). Slash purchasing costs. Smart Business magazine, 14(5)(May 2001): p

p66-67.

126. Wirtz, B. W., 2001, Electronic Business, Gabler, Wiesbaden, 2001.

127. Wyld, David C. (2002). The Electric Company: How the Supply Chain is being

reinvented Through the Rapid Application of e-Procurement Processes in the Business-

to-Business Arena, Management Research News, Volume 25- November, P22-53.


128. Yin, R. K. (1994). Case Study Research: Design and Methods (Second Edition

Ed.).

129. Zikmund, W.G. (2000). Business research methods,6TH edition. Harcourt

College Publishers, Orlando, FL, USA.

Date post:	06-Sep-2015
Category:	Documents
Upload:	mukul910862902
View:	1 times
Download:	0 times