Digital Transformation E-procurement: Analyse of The Barriers in applying E-procurement in Vietnamese SMEs

Abstract

Digital transformation, or digitalization, is one of the trends in which any business or organisation has always been looking for new and timely solutions to meet global economic trends. Technology solutions are indispensable tools in an enterprise's business activities that play the roles of management, data storage, data visualisation, performance monitoring, and reporting. Management software technology applications can be considered the backbone of streamlining work processes.

This study focuses on the application of electronic procurement to the purchasing activities of small and medium-sized enterprises in Vietnam. Electronic procurement offers significant benefits and effectively supports operations as well as strategic purchasing plans. However, small and medium-sized enterprises often encounter barriers when implementing it in practice. The research objective focuses on identifying, evaluating barriers, and examining the current status of electronic procurement applications in small and medium-sized enterprises in Vietnam. Two research questions are posed to answer the research objectives: (1) What obstacles hinder the ability to apply e-procurement digital transformation to small and medium-sized enterprises in Vietnam? (2) What is the current state of electronic procurement form applications in Vietnam's small and medium enterprises?

The research relied on an explanatory and qualitative research methodology. Primary data was collected using survey and structured interview techniques, with purposive sampling. Secondary data is compiled from books and scientific research articles to serve the research. The PEST analysis is a method of studying factors in the macro environment including: political (legal, regulations) factors; economic factors (organisation); social (culture) and technological. These are four factors that directly impact the economy in general and each business in particular. Therefore, it would be reasonable to use it to evaluate the overall picture in the areas of barriers in implementing e-procurement application in small and medium enterprises in Vietnam. Research results also show that small and medium-sized enterprises have applied e-procurement forms as part of the entire purchasing process, while the public sector has adopted an e-government procurement system as full-cycle procurement.