The Disruptive Innovation Theory Applied to National Implementations of E‑procurement

Abstract

Due to its characteristics, size, and impact, e‑procurement has a strategic importance not only for public administration but for e‑government, since its implementation necessarily crosses many institutional barriers and paradigms of many public managers. E‑procurement brings a set of new rules and dynamics that create ways of doing business with the State in a totally different fashion, with a whole new and bigger set of participants, new incentives and a radically different cost structure; conditions that have the potential to create a competitive marketplace of unparalleled transparency, efficiency and access. While worldwide public e‑procurement has been linked to a myriad of promises, in practice, it has achieved little. Our research, however, shows that to date literature has failed to recognize that e‑procurement is a disruptive innovation, based on also disruptive technologies. A fundamental difference exists between disruptive and sustainable innovations. Empirical evidence suggests the relevance of recognizing a disruptive innovation and its implications as a key success factor. By not considering these implications prior to implementation, strategic actions at the level of organization, resources, people and values, which significantly affects the results derived from the implementation were not considered, and therefore, many promises remain unfulfilled.The findings of this research contribute to an expanded understanding of the factors that promote successful implementation of nation‑wide e‑procurement systems at a time when this technology and operational model is widely needed as many governments are struggling with flawed attempts to implement these systems.