Impacts of the e-centralized procurement platforms on business operations - Based on a study of Hebei Construction Group

• Main Author: LI, Baozhong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: E-Centralized Procurement Platforms; case study; supplier questionnaires.; Business Administration, Management, and Operations; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/etd_coll/586; https://ink.library.smu.edu.sg/context/etd_coll/article/1584/viewcontent/GPBA_AY2018_Li_Baozhong.pdf
• Institution: Singapore Management University

Thanks to the rapid development of Internet technology, enterprises make an important innovation and they launch e-centralized procurement platforms in procurement activities. Taking Hebei Construction Group for a case study, this paper aims to explore the impact of E-Centralized Procurement Platforms on business operations, and comprehensively evaluates the impact of E-Centralized Procurement Platforms on enterprises’ performance by means of theoretical review, case study, empirical research, and questionnaire. Chapter 1 firstly presents the problems of this paper and introduces the background and significance of the selected topic. Hebei Construction Group is primarily engaged in the construction industry, so this paper is of great significance in exploring how E-Centralized Procurement Platforms affect business operations. Meanwhile, Chapter 1 outlines the methodology and structure of this paper in the research idea section. Chapter 2 provides an in-depth discussion of the concept of E-Centralized Procurement Platforms and related theories and explains in detail the procurement costs and components as well as the advantages of centralized procurement. It also implies relevant theories such as transaction cost theory, bilateral market theory, and scale effect theory in the research to help understand how E-Centralized Procurement Platforms affect business operations. The literature review section reviews the procurement management of enterprises, procurement platform-related studies, and related literature reviews to provide theoretical support for the subsequent research. Two research hypotheses are specified in Chapter 3 based on theoretical analysis and real-world observation, laying a foundation for the subsequent empirical research. Chapter 4 makes clear the research design, including the methods of case analysis, empirical research and questionnaire survey. The case study of Hebei Construction Group's centralized procurement platform reveals the basic features of the platform and its impact on business operations. The empirical research provides a solid foundation for the findings through synthetic control method and DID method. The questionnaire and empirical analysis also provide perspectives from suppliers, further supporting the findings. Chapter 5 summarizes the research results. First, the case study of Hebei Construction Group's centralized procurement platform reveals the basic features of the platform and its positive impact on business operations. Next, findings of the empirical research show that E-Centralized Procurement Platforms have a significant impact on corporate profits, either through the synthetic control method or the DID method. Finally, Chapter 6 showcases conclusions, emphasizes the positive impact of E-Centralized Procurement Platforms on business operations and puts forwards management recommendations. The findings are of reference value to Hebei Construction Group and other players in China's construction industry, helping to optimize the procurement process, enhance enterprises’ performance, and achieve better business results.