Role of big data analytics and information processing capabilities in enhancing transparency and accountability in electronic procurement applications

Abstract

Corruption in procurement undermines economic sustainability worldwide. Thus, this dissertation examines the intricate relations between electronic procurement (e-procurement) applications, Big Data Analytics (BDA), and Information Processing Capabilities (IPCs) and their overall influence on Transparency and Accountability (TA) and procurement performance in the United Arab Emirates (UAE) private sector. It empirically explores direct and indirect relationships, emphasizing the impact of technological advancements on procurement practices and outcomes. The study addresses two primary questions: how BDA enhances the influence of e-procurement on firms’ TA and the role of IPC in strengthening the effect of e-procurement on BDA. The findings reveal significant positive correlations between e-procurement coordination (EPC) applications and BDA and also e-procurement transactional (EPT) applications and BDA. Thus, organizations utilizing e-procurement are more likely to incorporate BDA into their procurement processes, leading to improved operational efficiency and decision-making based on the data analysis. BDA significantly mediates the relationship between EPC and TA and also EPT and TA, highlighting its transformative potential in enhancing procurement ethics and governance. Unexpectedly, IPC did not significantly moderate the relation between e-procurement and BDA, suggesting that factors such as stakeholder involvement, system complexities, and organizational culture may overshadow IPC’s impact. These findings challenge existing perspectives and warrant further investigation into these elements to deepen our understanding of their impact on procurement performance. The study enhances theoretical comprehension of the revolutionary potential of Industry 4.0 in procurement, illustrating how the integration of e-procurement and BDA can improve operational efficiency and overall supply chain performance. For practitioners in procurement and supply chain management, the practical implications underscore the necessity of adopting a comprehensive approach that integrates technology, culture, and stakeholder engagement to fully leverage the benefits of e-procurement and BDA. Overall, this dissertation offers valuable insights into the critical areas of e-procurement, BDA, and IPC, emphasizing the essential role of TA in achieving superior procurement performance. Moreover, it highlights the need for future research to explore additional factors that may moderate and mediate the effects of emerging technologies on the integration of e-procurement and BDA, advocating for a holistic approach that aligns technology with strategic objectives to enhance procurement excellence.

Keywords: e-procurement, big data analytics, information processing capabilities, transparency and accountability, procurement performance, Industry 4.0