Nurmazilah Mahzan

Determining the factors that attracts vendors to participate in an e-procurement system

E-procurement has the potential to provide savings to organisations by properly developing, planning, allocating the company’s resources and communicating effectively with vendors. Through the implementation of an enterprise resources planning (ERP) and the electronic data interchange (EDI). As a result, buyers and sellers can develop partnerships through the automation of delivery schedules by linking the company’s material management system with the vendors system. The success of these initiatives however, depends on the vendors’ willingness to participate in an e-procurement system. Therefore, this paper attempts to examine the factors that would attract the vendors to participate in an e-procurement system. A survey was carried out on two hundred and fifty five registered vendors of a public listed company in Malaysia. This study found that the component of spending analysis is the most important component that influences the successful participation of the system while the contract management feature is the least important component.