Title: E-procurement system success factors and their impact on transparency perceptions: perspectives from the supplier side

Authors: Siti Aminah; Yuanisa Ditari; Larastri Kumaralalita; Achmad Nizar Hidayanto; Kongkiti Phusavat; Pornthep Anussornnitisarn

Addresses: Faculty of Computer Science, Universitas Indonesia, Depok, West Java, Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Computer Science, Universitas Indonesia, Depok, West Java, Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Computer Science, Universitas Indonesia, Depok, West Java, Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Computer Science, Universitas Indonesia, Depok, West Java, Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Engineering, Center for Advanced Studies in Industrial Technology, Kasetsart University, Bangkok 10900, Thailand ' Faculty of Engineering, Center for Advanced Studies in Industrial Technology, Kasetsart University, Bangkok 10900, Thailand

Abstract: In an effort to fight corruption, the Indonesian government has put e-procurement as one of the strategic programs among the seven flagships of the National Information Technology Council (DETIKNAS). One very successful developer of an e-procurement system is the Public Procurement Policy Institution, or Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP), with 731 government agencies and 333,452 suppliers accessing LKPP's system. This study was conducted to analyse the determinants of an e-procurement system's success as well as its impact on perceived transparency from the supplier's perspective. This study answers both questions by applying a covariance-based structural equation modelling approach to analyse the survey data of 157 respondents. This study finds that only system quality, service quality, regulation, trust, user satisfaction, and perceived benefits determine an e-procurement system's success. However, only trust in an e-procurement system predominantly affects perceived transparency.

Keywords: e-procurement; e-government; information system success; DeLone and McLean; trust; perceived transparency; LKPP; Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah; structural equation modelling; Indonesia.

DOI: 10.1504/EG.2018.090929

Electronic Government, an International Journal, 2018 Vol.14 No.2, pp.177 - 199

Received: 24 Aug 2016
Accepted: 25 Sep 2017
Published online: 03 Apr 2018 *

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