A conceptual model for assessing the impact of electronic procurement

This paper aims to contribute to the development of a conceptual model for studying the direct and indirect impact of various forms of electronic procurement (EP) on a firm's integral purchasing (-related) costs. The model builds on existing classifications of purchasing-related costs and benefits and is illustrated by means of empirical data. Building the model leads us to conclude that assessment of the direct impact but especially the indirect impact of EP is far from straightforward. A form of EP may not only affect different categories of purchasing-related costs but also induce opposing direct effects within one such category. In addition, indirect effects can occur in many ways, as drastic reduction costs in one category may offer possibilities for structural changes in existing purchasing routines, which may in turn affect costs and benefits in other categories as well.