Adoption of e-procurement in foreign aided projects in Bangladesh

Abstract

Most of the big projects are being implanted in Bangladesh, financed by foreign aids from different international organizations. In FY 2014-15, the foreign aids amounting BDT 4472 (mn) was allocated in the national budget. E-procurement adoptions make purchasing activities more effective in terms of both time and cost. The objective of the study was to assess the adoption of e-procurement and value addition to the foreign aided projects in Bangladesh. Organizational-Technological-Environmental research model was used. Data collection techniques focused on questionnaire. Random sampling was used in this study. The result showed that 88.89 % of the participants were from public entities and 11.11% were from others. Management’s positive attitude toward adoption of e-procurement helped allocating enough resources from available funds that brought the business partner close to each other. It also increased the partner’s firm efficiencies. E-procurementwas compatible with most organization’s business operations and existing information but not with those of the supplier. Thecomplexity was much experienced on business partner operation site. Technological infrastructures in most organization were sufficient. Organizations were benefited from cost saving after implementing e-procurement process though the initial installation cost was not negligible. Pressure for adoption of e-procurement came from competition among organization but not from supplier demand. Core value of effectiveness and efficiency of e-procurement acted as normative pressure. Regulatory body of Bangladesh and foreign financing agencies had an influence over the adoption of e-procurement. But regulatory bodies did not perform active role as it was expected. To ensure good governance, transparency, eradication of corruption and building people trust on procurement process is necessary. To achieving the goals “Digital Bangladesh Vision 2021” adoption of e-procurement in all foreign aided projects is crucially needed.