The Influence of Digital Procurement Transformation on Procurement Performance: The Mediating Roles of Procurement Transparency and Process Agility in Pakistani Organizations

Abstract

Digital technologies are increasingly central to procurement modernization efforts worldwide; however, empirical evidence on their actual contribution to procurement performance remains scarce, particularly in developing economies. This study examines the effect of digital procurement transformation on procurement performance among Pakistani organizations, with procurement transparency and process agility investigated as sequential mediating mechanisms. Grounded in the dynamic capabilities perspective and information transparency theory, a conceptual model was developed to explain this relationship. A quantitative, cross-sectional design was adopted, with data collected from 250 procurement professionals and supply chain managers across Pakistani organizations via a structured questionnaire. Hypothesized relationships were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess both direct and indirect effects. Results indicate that digital procurement transformation significantly and positively influences procurement performance, with this relationship partially mediated by procurement transparency and process agility. Organizations adopting digital procurement solutions demonstrate greater sourcing visibility and enhanced process flexibility, both of which contribute to improved performance outcomes. These findings extend the digital procurement literature by clarifying the mechanisms underlying value creation and offer practical implications for managers and policymakers seeking to strengthen procurement capabilities in emerging markets. The study further establishes a foundation for future research examining additional mediators and moderators within the digital procurement–performance nexus.