eRC McMaster eBusiness Research Centre BARRIERS TO SME e-PROCUREMENT SOLUTIONS IN CANADA: A SURVEY By Cam Cuthbert, Dan Hamzic and Norm Archer
[email protected] McMaster eBusiness Research Centre (MeRC) DeGroote School of Business MeRC Working Paper No. 7 Aug ust 2003 McMaste,r University . ! Innis , · ..� (/, .) .. ..� HF 5548.32 .M385 no.7 BARRIERS TO SME e-PROCUREMENT SOLUTIONS IN CANADA: A SURVEY By Cam Cuthbert, Dan Hamzic and Norm Archer MeRC Working Paper # 7 August 2003 © McMaster eBusiness Research Centre (MeRC) DeGroote School of Business McMaster University Hamilton, Ontario, L8S 4M4 Canada
[email protected] ABSTRACT Many SMEs (Small and Medium Enterprises) handle procurement through an inefficient combi nation of manual processes, including paper records, phone calls, e-mails, and faxes. This can lead to problems such as limited financial reporting,lack of readily accessible management infor mation, lower levels of vendor compliance, and unauthorized spending. There are e-procurement solutions that can address these issues, but most of these tend to be expensive, complex, require technical expertise to install and maintain, and are usually oriented towards larger firms. The purpose of this study was to examine the barriers perceived by Canadian SMEs to e-procurement. A total of 5 3 companies responded to the questionnaire in a survey distributed primarily by e mail during June and July 2003. Findings fromthe survey indicate that e-procurement in Cana dian SMEs has a slow acceptance rate compared to other Internet-based solutions. Major find ings were that many companies were not familiarwith e-procurement solutions, and almost half indicated they would not be considering such solutions within the next three years.