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Despite the lengthy implementation periods of electronic procurement (e-procurement) as one of strategic public innovations, there is still a lack of empirical research on its potential benefits and outcomes in the context of governmental sector. Meanwhile, the examination about how the competitive environment affects e-procurement implementation is also remaining unclear. The present study aims to investigate the relationships between estimated cost of procurement, procurement type, number of auction participants and the efficiency of e-procurement practices in government organization. For this purpose, a dataset provided by the Electronic Procurement Service Unit of Badung Local Government of Bali Province that covers the entire government procurement auction for the years 2012-2017 were analyzed using a linear regression analysis. Results indicated a positive and significant relationship between the estimated cost and the number of auction participants of government eprocurement. In addition, the type of procurement significantly affects the number of auction participants. Procurement auctions for goods and for construction are found to have a stronger effect than the services auctions on the increasing number of auction participants. Finally, the number of auction participants has a positive and significant impact on the efficiency of the procurement in local government organization. These findings have several implications on design of government e-procurement. Keywords—government e-procurement; cost of procurement; efficiency; Auction Theory; Government Accounting

Investigating The Success of Public Procurement Innovation in Government Organization: Does e-Procurement Really Work?