Enhancing supply chain agility through e-procurement in a volatile frontier market

Abstract

Background: The business environment is increasingly becoming volatile, uncertain, complex and ambiguous (VUCA) because of globalisation, increased competition, random consumer tastes changes and environmental factors. Traditional procurement strategies are becoming increasingly redundant because of the volatility of the global business environment. The market has thus called for increased agility to conquer the VUCA nature of the supply chain environment.

Objectives: The study sought to examine the role that e-procurement plays in augmenting the agility of supply chains. The four determinants of e-procurement, that is, e-design, e-sourcing, e-evaluation and e-negotiation, were linked directly with supply chain agility.

Method: A census approach was taken to gather data from 219 supply chain and procurement employees of Zimbabwe’s telecommunications and technology industry. A self-administered survey questionnaire was used based on a scientifically developed and validated supply chain agility measurement scale from the extant literature.

Results: Using structural equation modelling (SEM), the study’s results confirmed that e-procurement significantly predicts supply chain agility. All determinants of e-procurement were statistically significantly explaining supply chain agility in a volatile business environment.

Conclusion: The study concludes that e-procurement augments the agility of the supply chain in volatile business environments, as e-procurement can increase swiftness and agility as it fosters ubiquitous business processes on a seamless real-time basis. It emerged from the study that the supply chain vulnerabilities volatile industries face could be eliminated through supply chain agility, augmented through e-procurement systems. The study’s findings also implore supply network members from upstream to downstream to adopt e-procurement.

Contribution: The study has practical implications for all supply network members from upstream to downstream. It implores these members to adopt e-procurement to revive supply networks amid environmental volatility and alleviate miscommunication. Study also offers theoretical implications for e-procurement and supply chain management. The study also contributes to the body of knowledge by extending the existing theories on e-procurement and supply chains in the context of environmental volatility.