Title: The potential of e-procurement technology for reducing corruption

Authors: Arjun Neupane; Jeffrey Soar; Kishor Vaidya

Addresses: School of Information Systems, Faculty of Business and Law, University of Southern Queensland, Toowoomba, QLD 4350, Australia. ' School of Information Systems, Faculty of Business and Law, University of Southern Queensland, Toowoomba, QLD 4350, Australia. ' Faculty of Information Sciences and Engineering, University of Canberra, ACT 2601 Australia; Faculty of Business and Law, University of Southern Queensland, Toowoomba, QLD 4350, Australia

Abstract: This paper discusses a theoretical background for an anti-corruption strategy through the principal-agent theory, and explores the potential of public e-procurement for reducing corruption in public procurement. It explores risk factors of corruption in relation to the roles of government, agent, and briber. The Anti-corruption potential of public e-procurement includes the reduction in monopoly of power, information asymmetry, corruption fees, and corruption services. In the paper we also discuss case study examples from Denmark, Singapore, the Republic of Korea, and the Government of Andhra Pradesh in India. These indicate the potential of e-procurement for greater transparency and efficiency. The discussions suggest that the anti-corruption capabilities of public e-procurement have many benefits, particularly, in terms of enhancing accountability, effectiveness and transparency in government procurement, to combat corruption.

Keywords: e-procurement; electronic procurement; online procurement; transparency; accountability; corruption; efficiency; anti-corruption strategy; principal agent theory; public procurement; Denmark; Singapore; Korea; India; government procurement.

DOI: 10.1504/IJITM.2012.049997

International Journal of Information Technology and Management, 2012 Vol.11 No.4, pp.273 - 287

Received: 01 Jul 2011
Accepted: 13 Dec 2011

Published online: 22 Oct 2012 *

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