The performance impact of digital technology adoption in procurement : a case study of the manufacturing industry in the Eastern Economic Corridor, Thailand | |
| Author | Nonnaphan Jantaro |
| Call Number | AIT RSPR no.SM-23-01 |
| Subject(s) | Information technology--Purchasing--Thailand, Eastern--Case studies Industrial procurement--Thailand, Eastern--Case studies Manufacturing processes--Thailand, Eastern--Case studies |
| Note | A Research Study Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science in Business Analytics & Digital Transformation |
| Publisher | Asian Institute of Technology |
| Abstract | A function that consumes huge of company cost is one of function in Purchase-to-Pay process which is procurement. This function is not only to order goods and services but their processes complex and there are many procedures that need to perform. Procurement needs to handle lot of data, if the company will continue to work manually without digital technology it might causing human error which will lead to issue in higher cost and will create a lot of delay in procurement process. According to digital disruption, many companies have adopted digital technology into their working processes. Tasks that use to be done manually by human has been replaced by automation process which aims to complete tasks rapidly, minimize their operation costs and to be competitive among their competitors. To improve procurement performance, to select the right technologies that will create impact to the performance is quite a challenging task for the company. Therefore, this study has two objectives. First, to examine the impact of digital technology adoption on procurement performance. Second, to examine the mechanism through which the digital technologies impact procurement performance. We suggest that the digital technologies influence performance through three factors which are human error reduction, data availability, and responsiveness. Manufacturing company located in the Eastern Economic Corridor (EEC) of Thailand has been select as a target which consists of three provinces including Chachoengsao, Chonburi, and Rayong. Hundred responses from medium and large manufacturing company in EEC has been collected to analyze research results. In research finding, there are data supported our hypotheses that digital technology adoption in procurement has positively impact to procurement performance; i.e., reduction in procurement cost and procurement cycle time. As a result of moderation effect, reduce human errors, data availability and responsiveness moderated the positive impact between technology adoption and procurement cost reduction. The effect between technology adoption and procurement cycle time reduction has positively mediates by reduce human errors and data availability. However, responsiveness rejected the hypothesis that mediate relationship between technology adoption and procurement cycle time reduction. |
| Year | 2023 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Science in Business Analytics and Digital Transformation (M/Msc BADT) |
| Chairperson(s) | Badir, Yuosre F.M. |
| Examination Committee(s) | Zimmerman, Willi;Khan, Syed Shurid |
| Scholarship Donor(s) | Royal Thai Government |
| Degree | Research studies project report (M. Sc.) - Asian Institute of Technology, 2023 |
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