Design and evaluate a digital procurement platform for small manufacturing firms

Thesis Abstract

The increasing complexity of procurement processes coupled with technological advancements necessitates the development of efficient digital solutions for small manufacturing firms, which traditionally rely on manual and semi-automated procurement practices that often result in delays, inaccuracies, and elevated procurement costs. This study aims to design, implement, and evaluate a comprehensive digital procurement platform tailored specifically for small manufacturing enterprises to enhance operational efficiency, transparency, and cost-effectiveness. The research objectives include identifying the current procurement challenges faced by small manufacturers, developing a user-centric digital procurement system based on best practices and relevant theories such as the Technology Acceptance Model (TAM) and the Resource-Based View (RBV), and assessing the platform's impact on procurement performance through empirical evaluation. The study adopts a mixed-methods research design, integrating qualitative exploratory interviews with procurement managers and quantitative evaluation through structured surveys. The target population comprises 150 small manufacturing firms within the manufacturing hub region, from which a stratified random sample of 60 firms is selected to ensure representativeness across different subsectors. Data collection involves semi-structured interviews with 15 key procurement personnel to gather insights into existing challenges and system requirements, complemented by structured questionnaires administered to the remaining 45 firms to measure perceptions, usability, and performance outcomes post-implementation. Validity and reliability of the instruments are established through expert review, pilot testing, and Cronbach’s alpha analysis, ensuring the robustness of collected data. The platform's effectiveness is evaluated using a combination of descriptive statistics, multiple regression analysis to determine the influence of platform adoption on procurement efficiency, and paired-sample t-tests to compare pre- and post-implementation performance metrics. The analytical framework also incorporates thematic analysis of interview transcripts to identify emergent themes related to usability, user acceptance, and operational impacts. Data analysis will be executed through SPSS and NVivo software packages, aligning the findings with the theoretical underpinning provided by TAM for assessing user acceptance and RBV for technological resource utilization. Expected results indicate that the digital procurement platform will significantly improve procurement cycle times, reduce procurement costs, and increase transparency and supplier relationship management. Moreover, user acceptance is hypothesized to be positively influenced by perceived ease of use and compatibility, while the platform’s contribution to resource efficiency will support the theoretical assertions of RBV regarding technological capabilities as strategic resources. The study anticipates revealing critical success factors for digital platform adoption in small manufacturing settings, including managerial support, user training, and system customization. The contribution to knowledge encompasses the development of a tailored digital procurement model that addresses the unique operational contexts of small manufacturing firms and provides empirical evidence on the impact of digital transformation in procurement within this sector. Furthermore, the research extends existing frameworks by integrating TAM and RBV to elucidate factors driving technology adoption and resource capabilities in small enterprises. The main conclusion emphasizes that a well-designed digital procurement platform can serve as a strategic tool for small manufacturers to gain competitive advantage through streamlined procurement processes. Recommendations include initiatives for phased implementation, capacity-building for staff, and policy frameworks that promote digital adoption within small businesses. The study advocates for further research to explore longitudinal impacts over multiple years and the potential integration of emerging technologies such as blockchain and artificial intelligence to further enhance procurement transparency and security.