Assimilation patterns in the use of electronic procurement innovations: A cluster analysis

Electronic procurement innovations (EPI) have been adopted by many firms as a means of improving their procurement efficiency and effectiveness, but little research has been conducted to determine whether the assimilation of EPI really increases procurement productivity and which factors influence its assimilation. Drawing on data from 166 firms, we conducted an exploratory study to address these questions, using cluster analysis that revealed four different clusters or patterns of EPI assimilation: none, focused niche, asymmetric, and broad-based deployment. The level of EPI assimilation was closely related to procurement productivity. Greater levels of EPI assimilation were associated with higher levels of top management support and greater IT sophistication. Also, interesting patterns emerged between the various elements of EPI infrastructure capability, specifically flexibility and comprehensiveness of standards, EPI security, and the level of EPI assimilation.