Investigating the Impact of E-Procurement on Sustainability through Digitalization Technologies of Blockchain and Robotics Process Automation: An Applied Study on the Oil and Gas Industry in the Egyptian Context
Downloads
Abstract
Aim: E-procurement describes the automation and simplification of procurement procedures, such as ordering, payment, and purchase, through the use of digital platforms and technology. With this technology, businesses can efficiently track orders, manage suppliers, and maintain expenditures under control. E-procurement in the oil and gas industry contributes to cost savings and improved adherence to safety and environmental regulations by lowering procurement cycle times, improving supplier selection, increasing transparency, and lowering the risks connected with manual procurement methods. Therefore, this study examines the relationship between e-procurement and sustainability, particularly focusing on the mediating role of digitalization technologies in Egypt's oil and gas sector.
Methodology: The study adopted a deductive quantitative approach, focusing on employees within the oil and gas sector. Primary data were collected via a questionnaire, where respondents were asked to indicate their level of agreement with various statements using a Likert scale.
Result: The study found that the relationship between e-procurement and digitalization technologies was partially supported. In addition, the relationship between digitalization technologies and sustainability was partially supported. Also, the relationship between e-procurement and sustainability is partially supported. The findings revealed that there was a mediation role of digitalization technologies between e-procurement and sustainability.
Downloads
1. Abid, N., Marchesani, F., Ceci, F., Masciarelli, F. and Ahmad, F., 2022. Cities trajectories in the digital era: Exploring the impact of technological advancement and institutional quality on environmental and social sustainability. Journal of Cleaner Production, 377, p.134378.
2. Addy, M.N., Addo, E.T., Abdulai, S.F., Kwofie, T.E., Aigbavboa, C.O. and Adade-Boateng, A.O., 2024. E-procurement acceptance in the Ghanaian public sector: an application of an extended technology acceptance model (TAM) in the construction industry. Journal of Engineering, Design and Technology.
3. Ahmad, R.W., Salah, K., Jayaraman, R., Yaqoob, I. and Omar, M., 2022. Blockchain in oil and gas industry: Applications, challenges, and future trends. Technology in society, 68, p.101941.
4. Akinyosoye–Gbonda, O.O., Baio, A.S. and Kamara, B., 2024. CHALLENGES IMPEDING THE ADOPTION OF E-PROCUREMENT BY PUBLIC SECTOR ORGANISATIONS (MINISTRIES, DEPARTMENTS, AND AGENCIES) IN SIERRA LEONE–A SURVEY. European Journal of Management and Marketing Studies, 8(4).
5. Akter, S., Michael, K., Uddin, M.R., McCarthy, G. and Rahman, M., 2022. Transforming business using digital innovations: The application of AI, blockchain, cloud and data analytics. Annals of Operations Research, pp.1-33.
6. Albinkalil, A.M., 2021, March. Impact of E-procurement on Supply Chain Performance. In European, Asian, Middle Eastern, North African Conference on Management & Information Systems (pp. 133-143). Cham: Springer International Publishing.
7. Ali, N., 2016. Adapting E-Invoicing: Benefits, Challenges and Future Strategies to Overcome Challenges: A Comparative Case Study of Finnish Companies.
8. Al-Jaroodi, J. and Mohamed, N., 2019. Blockchain in industries: A survey. IEEE Access, 7, pp.36500-36515.
9. AlQubaisi, A.J., Emran, N.A. and Sam, M.F.M., 2022. A mediation role of sustainable supply chain in e-procurement of ADNOC the largest energy company in UAE. Journal of Positive School Psychology, 6(3), pp.4865-4877
10. Al-Rbeawi, S., 2023. A review of modern approaches of digitalization in oil and gas industry. Upstream Oil and Gas Technology, 11, p.100098.
11. Asare, E.N. and Prempeh, K.B., 2017. An empirical assessment of factors that influence the implementation of e-procurement in technical universities in Ghana. Journal of Logistics Management, 6(2), pp.52-60
12. Asare, E.N. and Prempeh, K.B., 2017. An empirical assessment of factors that influence the implementation of e-procurement in technical universities in Ghana. Journal of Logistics Management, 6(2), pp.52-60.
13. Bathrinath, S., Abuthakir, N., Koppiahraj, K., Saravanasankar, S., Rajpradeesh, T. and Manikandan, R., 2021. An initiative towards sustainability in the petroleum industry: A review. Materials Today: Proceedings, 46, pp.7798-7802.
14. Boikova, T., Zeverte-Rivza, S., Rivza, P. and Rivza, B., 2021. The determinants and effects of competitiveness: the role of digitalization in the European economies. Sustainability, 13(21), p.11689.
15. Böttcher, T.P., Empelmann, S., Weking, J., Hein, A. and Krcmar, H., 2024. Digital sustainable business models: Using digital technology to integrate ecological sustainability into the core of business models. Information Systems Journal, 34(3), pp.736-761.
16. Choubey, S. and Karmakar, G.P., 2021. Artificial intelligence techniques and their application in oil and gas industry. Artificial Intelligence Review, 54(5), pp.3665-3683.
17. Chukwuemeka, R. and Poi, E.L., 2023. Moderating Role of Market Orientation on the Relationship Between E-Sourcing and Supply Chain Sustainability of Oil and Gas Firms in Rivers State. International Journal of Management & Marketing Systems, 14(10), pp.87-101.
18. Demartini, M., Evans, S. and Tonelli, F., 2019. Digitalization technologies for industrial sustainability. Procedia Manufacturing, 33, pp.264-271.
19. Dey, K. and Bhattacharya, J., 2021. Reverse Auction Administration in Indian Public Sector Coal Mining, its Effect on the Engineering and Unsustainable Outcomes. Journal of The Institution of Engineers (India): Series D, 102(1), pp.103-111.
20. Dmitrieva, D. and Romasheva, N., 2020. Sustainable development of oil and gas potential of the Arctic and its shelf zone: The role of innovations. Journal of Marine Science and Engineering, 8(12), p.1003.
21. Farinha, D., Pereira, R. and Almeida, R., 2024. A framework to support Robotic process automation. Journal of Information Technology, 39(1), pp.149-166.
22. Fernandez, D. and Aman, A., 2021. Planning for a successful Robotic Process Automation (RPA) project: a case study. Journal of Information and Knowledge Management (JIKM), 11(1), pp.103-117.
23. Feroz, A.K., Zo, H. and Chiravuri, A., 2021. Digital transformation and environmental sustainability: A review and research agenda. Sustainability, 13(3), p.1530.
24. Guo, L., Liu, Q., Shi, K., Gao, Y., Luo, J. and Chen, J., 2021. A blockchain-driven electronic contract management system for commodity procurement in the electronic power industry. Ieee Access, 9, pp.9473-9480.
25. Gurgun, A.P., Kunkcu, H., Koc, K., Arditi, D. and Atabay, S., 2024. Challenges in the Integration of E-Procurement Procedures into Construction Supply Chains. Buildings, 14(3), p.605
26. Hasan, J., Thomas, A. and Tomos, O., 2024. Sustainable Supply Chain Practices in the Oil and Gas Industry: A Case Study. Sustainability, 16(5), p.1720.
27. Hidayanti, E., Kunrat, K.A. and Ikram, S., 2022. Implementation of Robotic Process Automation in Public Sector Goods and Services e-Procurement Audit. Khazanah Sosial, 4(4), pp.662-677.
28. Hunt, J.D., Nascimento, A., Nascimento, N., Vieira, L.W. and Romero, O.J., 2022. Possible pathways for oil and gas companies in a sustainable future: From the perspective of a hydrogen economy. Renewable and Sustainable Energy Reviews, 160, p.112291.
29. Ilhan, N. and Rahim, M.M., 2020. Understanding digital transformation of procurement through e-procurement systems implementation: Business partner relationship perspective. In Leadership, Management, and Adoption Techniques for Digital Service Innovation (pp. 182-206). IGI Global.
30. Isoghom, H.W. and Worgu, P.O., 2024. E-Procurement Practices and Operational Efficiency of Oil and Gas Equipment Companies in Rivers State. GPH-International Journal of Business Management, 7(06), pp.59-70.
31. Jiang, Y., Li, X., Luo, H., Yin, S. and Kaynak, O., 2022. Quo vadis artificial intelligence? Discover Artificial Intelligence, 2(1), p.4.
32. Kandpal, D., 2023. Assessing the effectiveness of policies of wind energy in India with special emphasis on the decision making process of firms during wind energy auctions (Doctoral dissertation, College of Management and Economic Studies, UPES, Dehradun).
33. Kaur, G. and Kander, R., 2023. The Sustainability of Industrial Hemp: A Literature Review of Its Economic, Environmental, and Social Sustainability. Sustainability, 15(8), p.6457.
34. Khalaf, A.H., Xiao, Y., Xu, N., Wu, B., Li, H., Lin, B., Nie, Z. and Tang, J., 2023. Emerging AI technologies for corrosion monitoring in oil and gas industry: A comprehensive review. Engineering Failure Analysis, p.107735.
35. Kim, J.W., Kim, S.J., Cha, W.C. and Kim, T., 2022. A blockchain-applied personal health record application: Development and user experience. Applied Sciences, 12(4), p.1847.
36. Kiusya, M.M., 2018. Effect of e-procurement practices on the operational performance of manufacturing firms in Mombasa county, Kenya (Doctoral dissertation, University of Nairobi).
37. Kristiyanti, M., Rosita, N., Hermawati, R., Khamdilah, A., Kundori, K. and Mawardi, K., 2024. Logistics digitalization on import document activities: Electronic delivery orders and service quality in maritime ports. International Journal of Data and Network Science, 8(1), pp.227-234.
38. Lifard, A., 2020. Assessment of the Influence of Procurement Contract Management for Goods in Achieving Value for Money in Public Sector in Tanzania, A Case of President’s Office Regional Administration and Local Government (PO–RALG) (Doctoral dissertation, Mzumbe University).
39. Liu, S., Cai, H. and Cai, X., 2023. The paradox of digitalization, competitiveness, and sustainability: A firm-level study of natural resources exploitation in post Covid-19 for China. Resources Policy, 85, p.103773.
40. Maina, P.M., 2023. E-procurement Strategies and Sustainable Procurement Performance of Telecommunication Companies in Kenya (Doctoral dissertation, University of Nairobi).
41. Marei, A., 2022. The effect of e-procurement on financial performance: Moderating the role of competitive pressure. Uncertain Supply Chain Management, 10(3), pp.855-866.
42. Mwangi, P.N., 2020. Application of E-Sourcing And E-Informing in Procurement Practices on Procurement Performance in Independent Electoral And Boundaries Commission In Kenya. Int. J. Bus. Manag. Finance, 3.
43. Ndei, F.M. and Mutuku, M., 2021. Electronic Procurement and Performance of Non-Governmental Organizations in Kenya. Empirical Evidence from Pathfinder International, Kenya. J. Bus. Manag. Sci, 9, pp.71-80.
44. Obeidat, S.M., Al Bakri, A.A. and Elbanna, S., 2020. Leveraging “green” human resource practices to enable environmental and organizational performance: Evidence from the Qatari oil and gas industry. Journal of business ethics, 164, pp.371-388.
45. ODOYO, L.A., 2017. Influence of electronic procurement implementation on procurement performance of Migori county government, Kenya (Doctoral dissertation, Maseno University).
46. OMOREGBE, O., OLUFOLAHAN, M.O. and AZAGE, J., 2022. ELECTRONIC PROCUREMENT PRACTICES AND SUSTAINABLE ORGANIZATIONAL COMPETITIVE ADVANTAGE OF THE UPSTREAM SECTOR OF THE OIL AND GAS FIRMS IN NIGERIA. Journal of academic research in economics, 14(1).
47. OMORODION, O. and JOSEPH, A., 2024. CRITICAL SUCCESS FACTORS AND MANAGEMENT IMPLEMENTATION OF ELECTRONIC PROCUREMENT INITIATIVE OF THE UPSTREAM SECTOR OF THE NIGERIAN OIL AND GAS FIRMS. Journal of Academic Research in Economics, 16(1).
48. Oniyangi, H.A. and Ibrahim, A.U., 2024. Optimizing project timelines: The impact of e-procurement in accelerating public sector projects in Nigeria. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 9(3), p.3.
49. Onumajuru, C.C., Chioma, P. and Poi, E.L., 2024. THE MODERATING ROLE OF COMPETITIVE PRESSURE ON THE RELATIONSHIP BETWEEN E-PROCUREMENT AND SUPPLY CHAIN SUSTAINABILITY OF THE OIL AND GAS INDUSTRY IN RIVERS STATE. BW Academic Journal.
50. Oyewole, A.T., Adeoye, O.B., Addy, W.A., Okoye, C.C., Ofodile, O.C. and Ugochukwu, C.E., 2024. Promoting sustainability in finance with AI: A review of current practices and future potential. World Journal of Advanced Research and Reviews, 21(3), pp.590-607.
51. Rai, S.S., Rai, S. and Singh, N.K., 2021. Organizational resilience and social-economic sustainability: COVID-19 perspective. Environment, Development and Sustainability, 23, pp.12006-12023.
52. Rentizelas, A., de Sousa Jabbour, A.B.L., Al Balushi, A.D. and Tuni, A., 2020. Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains. Annals of Operations Research, 290, pp.279-300.
53. Sarango-Lalangui, P., Álvarez-García, J. and del Río-Rama, M.D.L.C., 2018. Sustainable practices in small and medium-sized enterprises in Ecuador. Sustainability, 10(6), p.2105..
54. Sarkar, M., Mathur, A., Kumar, D., Chatterjee, A., Mallik, S., Ahmad, N. and Badawy, A.S., Intelligent Framework for Allocating and Monitoring an E-Tendering System in the Big Data Paradigm. Available at SSRN 4747059.
55. Simionescu, M., Pelinescu, E., Khouri, S. and Bilan, S., 2021. The Main Drivers of Competitiveness in the EU-28 Countries. Journal of Competitiveness, (1).
56. Singh, P.K. and Chan, S.W., 2022. The impact of electronic procurement adoption on green procurement towards sustainable supply chain performance-evidence from Malaysian ISO organizations. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), p.61.
57. Singh, P.K., Ismail, F.B., Wei, C.S., Imran, M. and Ahmed, S.A., 2020. A framework of e-procurement technology for sustainable procurement in iso 14001 certified firms in Malaysia. Advances in Science, Technology and Engineering Systems Journal, 5(4), pp.424-431.
58. Tassabehji, R., 2010. Understanding e‐auction use by procurement professionals: motivation, attitudes, and perceptions. Supply Chain Management: An International Journal, 15(6), pp.425-437.
59. Wang, W., Chen, L., Xiong, M. and Wang, Y., 2023. Accelerating AI adoption with responsible AI signals and employee engagement mechanisms in health care. Information Systems Frontiers, 25(6), pp.2239-2256.
60. Waqar, A., Othman, I., Shafiq, N. and Mansoor, M.S., 2023. Applications of AI in oil and gas projects towards sustainable development: a systematic literature review. Artificial Intelligence Review, 56(11), pp.12771-12798.
61. Warburton, A., 2023. Procuring Bulk Petroleum for the Federal Government. Why Vendors’ Offers are Rated Technically Unacceptable (Doctoral dissertation, Acquisition Research Program).
62. Xiao, D. and Su, J., 2022. Role of technological innovation in achieving social and environmental sustainability: mediating roles of organizational innovation and digital entrepreneurship. Frontiers in Public Health, 10, p.850172.
Copyright (c) 2025 Dr. Mohamed Sabry
This work is licensed under a Creative Commons Attribution 4.0 International License.
