E-procurement adoption in Indonesian government: A study of TOE model

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Due to innovations, the Industrial Revolution 4.0 has become a popular trend among the public. The Indonesian government is eager to implement e-procurement in accordance with Presidential Regulation No. 16 of 2018 on government procurement. The purpose of this study is to assess the impact of each TOE model factor on Indonesian e-procurement adopters, as well as to investigate how the diffusion of innovation theory categorizes them. This study employed a quantitative method and SmartPLS version 3.0 to examine the model, based on Teo et al. (2009), which set the major structure. In this study, state-owned firms and their subsidiaries, as well as other private enterprises that operate in the infrastructure and construction sectors and participate in Indonesia’s e-procurement system, were used as samples. The result show that top management support (β = 0.279; p < 0.05) and information sharing culture (β = 0.783; p < 0.05) have positive and significant effects on e-procurement adoption. On the other hand, perceived cost (β = 0.097; p > 0.05), firm size (β = –0.080; p > 0.05), and business partner influence (β = –0.057; p > 0.05) did not contribute any effect significantly. This study expects that the organizing committee for government goods and services procurement, as well as participants in government goods and services procurement, would pay attention to and consider significant components in the implementation of e-procurement outside of the applicable legislation.

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    • Table 1. Research samples
    • Table 2. Indicators of variables
    • Table 3. Purposive sampling
    • Table 4. Descriptive statistics
    • Table 5. Convergent validity and reliability
    • Table 6. Discriminant validity
    • Table 7. PLS path algorithm and bootstrapping
    • Conceptualization
      Stefanus Ardy Susantya, Khoirul Aswar
    • Data curation
      Stefanus Ardy Susantya, Khoirul Aswar, Andreas Andreas
    • Formal Analysis
      Stefanus Ardy Susantya, Khoirul Aswar, Mahendro Sumardjo, Ingrid Panjaitan
    • Methodology
      Stefanus Ardy Susantya, Khoirul Aswar, Mahendro Sumardjo, Andreas Andreas
    • Software
      Stefanus Ardy Susantya, Khoirul Aswar, Andreas Andreas
    • Supervision
      Stefanus Ardy Susantya, Mahendro Sumardjo, Ingrid Panjaitan
    • Validation
      Stefanus Ardy Susantya, Mahendro Sumardjo, Ingrid Panjaitan
    • Writing – original draft
      Stefanus Ardy Susantya, Khoirul Aswar
    • Resources
      Khoirul Aswar, Andreas Andreas
    • Writing – review & editing
      Khoirul Aswar
    • Project administration
      Ingrid Panjaitan