Keyword

Capability Maturity, Centralized Procurement, Decentralized Procurement, e-Procurement, Digital Context, Supply Chain

Abstract

This study refers to the research model of Batenburg (2008) which defined procurement functions to six maturity dimensions; strategy, processes, control, organization, information, e-Technology as the starting point and indicates twenty two items to support capability maturity measurement which is called “Procurement Competitive Capability Maturity”(PCCM). This model is used for a company to assess current practices of procurement function and perceives the level of its capabilities. The data collection is from a survey of fifty-two selected procurement organizations in Southeast Asia (SEA) countries; from Thailand, Vietnam, Philippines, Indonesia, Malaysia and Singapore. The objective of this study is to demonstrate the significant value of industry type, size of spending and centralized/decentralized procurement that affect procurement capability maturity. The results show that the industry has no relation to the capability maturity; the size of procurement spend has a positive relation to the capability maturity; and the centralized procurement has higher capability maturity than the decentralized. Moreover, this study extends the knowledge of e-Procurement and digital context to leverage procurement processes and visible procurement integration in an organization and across the supply chain.


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