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All Journal Malacca: Journal of Management and Business Development
Afifah Fauziah
Universitas Islam Indonesia, Yogyakarta, Indonesia
Decision Sciences, Operations Research & Management

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Analysis of Digital System Implementation to Support Procurement Division Effectiveness: A Case Study of a State-Owned Agribusiness Company in Indonesia Afifah Fauziah; Dessy Isfianadewi
Malacca: Journal of Management and Business Development Vol. 3 No. 1 (2026): Management and Business Development
Publisher : Yayasan Pendidikan Islam Bustanul Ulum Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69965/malacca.v3i1.881

Abstract

Digitalization of procurement processes has become an important organizational strategy to improve operational effectiveness through the utilization of information technology. This study examines the implementation of digital systems in the tender process, their contribution to procurement effectiveness, and the challenges encountered during implementation within the procurement function of an Indonesian agribusiness company managing oil palm and rubber plantations. A qualitative descriptive approach with a case study design was employed. Data were collected through observations, semi-structured interviews, and document analysis involving procurement personnel. The findings reveal that the Integrated Procurement System (IPS) supports tender activities by enabling digital document management, workflow integration, procurement monitoring, and improved process traceability. The implementation of digital systems contributes to procurement effectiveness by improving information accessibility, coordination, and operational control. However, several challenges remain, particularly related to technological reliability, user adaptation, organizational readiness, and external stakeholder adjustment. Based on the Technology–Organization–Environment (TOE) Framework, successful digital procurement implementation requires alignment between technological capability, organizational capacity, and environmental support. This study highlights that digital procurement transformation involves not only technological adoption but also changes in organizational processes and stakeholder coordination.
Co-Authors Dessy Isfianadewi