The impact of using emerging technologies for direct purchasing of travel-related goods and services in an organisation in the western Cape, South Africa

Abstract

This study focuses on the purchasing of accommodation services. More importantly, the increasing organisational efficiency when managing costs through the use of online technologies when making bookings for accommodation. The purpose of this study is to explore and understand the challenges that restrict the application of online decentralised technologies that can assist in the purchasing of accommodation within organisations. The study identified the persistence of organisations in subscribing to rigid procurement policies that do not permit the organisation to make use of emerging online decentralised solutions for purchasing goods and services such as accommodation. The rationale for this study is the ability of organisations to reduce travel accommodation expenses and the ability to reinvest these savings in other operational expenses. To answer the three main research questions posed by the study, a case study design was adopted. The study makes use of qualitative research methods such as interviews to answer the research questions posed. Purposive sampling was undertaken to draw data from respondents who could provide meaningful information for the study. The findings of the study indicated that there are varying concerns for the organisation. Staff showed concerns regarding the implementation of online decentralise purchasing. However, staff also showed that there was an opportunity for the organisation as well as for the staff travelling. However, various factors need to be looked into such as value for the organisation versus value for staff. The key finding of the study is that the challenge restricting the implementation of online decentralised purchasing is the operationalising of the purchasing system. Various factors around operationalising this system are discussed in the finding. The impact on staff roles was also found to be a factor impacting the implementation of decentralised purchasing. This finding was classified into the various levels of responsibility among staff in the organisation. The study concluded that online decentralised purchasing can be accommodated by the organisation given sufficient preparatory work being done before implementation. The study also recommends the present considerations for implementation as well as future studies to be undertaken to ensure that staff are allowed to direct their work travel and the purchase of their materials and services in an attempt to create a more cost-effective purchasing system for the organisation.