Why Do Firms Adopt E-Procurement Systems? Using Logistic Regression to Empirically Test a Conceptual Model

Once the factors that foster the adoption of electronic-procurement systems (EPSs) are identified, economic agents may act accordingly and develop better programs in order to achieve their objectives. Toward the identification of such factors, a model that explains the adoption of EPS is developed, considering the technology-organization-environment framework as well as the institutional theory. This model was tested with data collected from the 2500 largest companies operating in Portugal. On the grounds of the f-test for equality of means, we found evidence that EPS adoption is positively and significantly associated to: 1) firm size; 2) technology competence; 3) the perception companies have about the EPS success of their competitors; 4) the extent of adoption among competitors; and 5) the readiness of the trading partners to perform electronic transactions. The logistic regression supplied further evidence that technology competence, firm size, extent of adoption among competitors, and trading partner readiness provide a reasonable estimate for each firm's likelihood to adopt EPS. We also found evidence that firms whose main activity is commerce are more likely to adopt EPS than are firms operating on manufacturing or services industries.