Abstract

This study explores the factors that impact the initial adoption and institutionalization of e-procurement in construction firms in developing countries. It proposes a research model based on an interaction perspective that is a combination of the technology-organization-environment (TOE) framework and the theory of reasoned action (TRA). Data collected from 112 construction businesses in Hanoi, Vietnam in 2012 were analyzed using partial least square-structural equation modeling (PLS-SEM). The findings show that the government plays an extremely important role in decision-making of both initial adoption and institutionalization of e-procurement in individual construction enterprises. Furthermore, the determinants of initial adoption of e-procurement are very different from those of institutionalization of the technology. The experience of the initial adoption of e-procurement is found not to have any significant effect on the decision of subsequent implementation of the technology. Theoretical implications, practical implications, and limitations of the research are discussed and suggestions for future research are made.