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Anti-Corruption Capabilities of Public E-Procurement Technologies: Principal-Agent Theory
Abstract
Public procurement is an important area warranting further attention in government reform, as electronic systems for procurement have enormous potential to help reduce corruption. Public e-Procurement is the use of an Internet or Web-based system by government institutions for the acquisition of goods and services, which can improve transparency and accountability. This chapter discusses different types of e-Procurement technologies with case examples from different countries that demonstrate how the e-Procurement technologies have great potential as the anti-corruption technologies. The chapter reviews the Principal-Agent Theory and discusses other relevant theories including Transaction Cost Theory, Fraud Triangle Theory, Diffusion of Innovation Theory, and the Technology Acceptance Model. Following a discussion of the potential of e-Procurement systems in mitigating corruption, a theoretical research model is proposed for identifying public e-Procurement anti-corruption capabilities.
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