USING UTAUT MODEL
(CASE STUDY IN INDONESIA LEADING HEAVY EQUIPMENT COMPANY)
By
Henry Martawidjaja 2-1952-041
MASTER’S DEGREE in
MECHANICAL ENGINEERING – ENGINEERING MANAGEMENT FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No.15, Alam Sutera Tangerang, Banten 15143 – Indonesia
February 2021
Revision after Thesis Defense on 1st Feb 2021
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Henry Martawidjaja 11 January 2021
Student Date
Approved by:
Dr. Eka Budiarto, S.T., M.Sc. _______________
Thesis Advisor Date
Dr. Ir. Mohammad Amin Soetomo, M.Sc. _______________
Thesis Co-Advisor Date
Dr. Maulahikmah Galinium, S.Kom, M.Sc. _______________
Dean Date
ABSTRACT
PROCUREMENT FRAMEWORK ANALYSIS AND EVALUATION OF E-PROCUREMENT IMPLEMENTATION ADOPTION
USING UTAUT MODEL
(CASE STUDY IN INDONESIA LEADING HEAVY EQUIPMENT COMPANY)
By
Henry Martawidjaja
Dr. Eka Budiarto, S.T., M.Sc., Advisor
Dr. Ir. Mohammad Amin Soetomo, M.Sc., Co-Advisor SWISS GERMAN UNIVERSITY
The study has developed a Customized Procurement Framework by integrating the Frameworks from Project Management Body of Knowledge (PMBOK), Information Technology Services Management (ISO 20000-1), Methodology for Assessing Procurement Systems (MAPS). The analysis of procurement process gap in the company is compared to customized framework through Focus Group Discussion.
The gap analysis showed that Process Group Vendor Relationship, Procurement Core Process and Administration were significantly improved after the implementation of e-Procurement system, whereas Customer Relationship and Procurement Control &
Audit had only partially improved. The Process group of Legal Compliance and Management Direction were not impacted by the system implementation, hence those would lead to the recommendation for company to further develop the area aforementioned.
Furthermore, the analysis also consider the user adoption of e-Procurement
software implementation by using UTAUT Model. The online questionnaire was distributed to 30 respondents as key users of the eProcurement system that had been implemented for two months. The users represent vendor, requester, IT support and the Procurement Operation team. Result of UTAUT evaluation showed that Behaviour Intention to Use the system was most influenced by Performance Expectancy hence it should be considered when developing the next phases of e-Procurement application.
Keywords: e-Procurement, Framework, PMBOK, ISO, MAPS, UTAUT
© Copyright 2021 by Henry Martawidjaja
All rights reserved
DEDICATION
I dedicate this research for my sons, and the company where I work.
ACKNOWLEDGEMENTS
I thank all SGU civitas academica, especially my Advisor, Dr. Eka Budiarto, S.T., M.Sc. for guiding me in this thesis, my Co-Advisor, Dr. Ir. Mohammad Amin Soetomo, M.Sc. for enlightening me with his previous working experiences, and all the people who involved in my research in the company. Also I thank Mr. Edhie Sarwono and all management of the company where I work, for their support and make this study program happened.
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 8
LIST OF TABLES ... 9
CHAPTER 1 - INTRODUCTION ... 12
1.1 Background ... 12
1.2 Research Problems ... 15
1.3 Research Objectives ... 17
1.4 Significance of Study ... 18
1.5 Research Questions ... 18
1.6 Hypothesis ... 18
CHAPTER 2 - LITERATURE REVIEW ... 19
2.1 Research model ... 19
2.2 Previous study ... 19
2.2.1 PMBOK ... 19
2.2.2 ISO 20000:2018 ... 21
2.2.3 MAPS ... 24
2.2.4 UTAUT ... 26
2.3 Most related research ... 27
2.4 State of the art ... 30
CHAPTER 3 - RESEARCH METHODS ... 32
3.3 Research Process ... 32
3.4 Population and Sampling Method ... 35
3.5 Data Sources and Collection ... 36
3.5.1 Type of data ... 36
3.5.2 Data collection method ... 36
3.5.3 Questionnaire structure ... 36
3.6 Method of Analysis ... 36
3.6.1 Variables ... 36
3.7 Data processing ... 38
3.7.1 Preparation ... 38
3.7.2 Validity test ... 38
3.7.3 Reliability ... 39
3.7.4 Structural model ... 39
CHAPTER 4 - RESULTS AND DISCUSSIONS ... 41
4.1 Framework Mapping ... 41
4.1.1 FGD Result ... 44
4.2 Result of UTAUT questionnaire ... 48
4.2.1 PLS Analysis of Measurement Model ... 52
4.2.2 The structural model (Inner Model) ... 55
4.3 Discussion ... 57
CHAPTER 5 - CONCLUSIONS AND RECOMMENDATIONS ... 59
5.1 Conclusions ... 59
5.2 Study contribution & implication ... 59
5.3 Study Limitation & Recommendation for future study ... 60
GLOSSARY ... 61
REFERENCES ... 62
APPENDIX ... 64
CURRICULUM VITAE ... 69
LIST OF FIGURES
Figures Page
Figure 1.1 Distribution flow of Heavy Equipment unit ... 12
Figure 1.2 Business Process PIN Function (Level 0) ... 13
Figure 1.3 Business Process PIN Division (Level 1) ... 14
Figure 1.4 Documents generated or received within procurement process ... 15
Figure 1.5 Number of documents from vendors ... 16
Figure 1.6 Leadtime process from Start request (PR) to Finish posting (AP). ... 16
Figure 2.1 Project Management Process Map (Scott, 2015) ... 21
Figure 2.2 Service management processes (ISO 20000–1 2005, p. 1) ... 22
Figure 2.3 Project Management Process Groups Mapped to the PDCA Cycle (PMI, 2004, p. 40) ... 24
Figure 2.4 Overview of MAPS ... 25
Figure 2.5 Four Pillars of MAPS ... 25
Figure 3.1 Research Process Flow ... 33
Figure 3.2 Research assessment framework ... 33
Figure 4.1 Integration Mapping of Proposed Framework ... 41
Figure 4.2 House of Procurement Management ... 42
Figure 4.3 PIN Business Process Mapping ... 43
Figure 4.4 FGD using Microsoft Teams ... 44
Figure 4.5 Business Process Workflow Mapping from FGD Result ... 47
Figure 4.6 Information about Gender, Age, Work experience ... 49
Figure 4.7 Information about Education Background, Computer experience ... 49
Figure 4.8 Model with Path Coefficient ... 51
Figure 4.9 Bootstrapping Histogram ... 57
LIST OF TABLES
Tables Page
Table 2.1 Previous Study of UTAUT Eight Constructs ... 27
Table 2.2 Most related research ... 29
Table 2.3 Proposed research ... 31
Table 3.1 Time Frame of Study ... 32
Table 3.2 Variable coding ... 38
Table 4.1 Framework Evaluation FGD Result ... 46
Table 4.2 Microsoft Excel Function INDEX and MATCH ... 50
Table 4.3 Descriptive Analysis ... 52
Table 4.4 Outer Loadings ... 53
Table 4.5 Discriminant Validity using Fornell-Larcker ... 54
Table 4.6 Discriminant Validity using Cross Loadings ... 54
Table 4.7 Construct Reliability and Validity ... 55
Table 4.8 R-Square ... 56
Table 4.9 Bootstrapping Output (Mean, STDEV, T-Values, P-Values) ... 58
