Drivers of e-bidding implementation in the Saudi Arabian construction industry

Purpose: The purpose of this paper is to identify the key drivers for adopting electronic bidding (e-bidding) systems in public construction projects located in Saudi Arabia. Design/methodology/approach: Literature review was undertaken to identify the drivers of e-bidding practices. Nine drivers, classified under four categories, were identified. A questionnaire survey was developed to assess the significance of the identified drivers. Responses were obtained from 20 large contractors, classified as Grade I and II contractors in Saudi Arabia, and 12 governmental authorities, representing owners of construction projects. The drivers were ranked according to their respective significance index (SI) values. Finally, a Spearman’s rank correlation coefficient was employed to ascertain the extent to which the two parties agreed on the significance level of the drivers. Findings: Analysis of the identified drivers revealed that the most significant driver was “reduction in the physical storage requirements of bidding paperwork.” Further, a consensus was observed with regards to the significance of the drivers. The findings of the present study highlight the strong potential of widespread e-bidding adoption in Saudi Arabia. It demonstrates the key drivers for the implementation of e-bidding through the perspective of professionals within the context of Saudi Arabia. Originality/value: Prior to this study, no previous research has endeavored to assess the drivers of e-bidding adoption in Saudi Arabia. The adoption of e-bidding will benefit organizations through improved efficiencies, which could potentially lower construction costs, thereby contributing to economic growth and benefitting the society at large.