Spend analytics in Norwegian public procurement: adoption status and influencing factors

Abstract

Public procurement is an essential government function representing a substantial part of a nation’s economy. How decisions are made in public procurement influences nations' economic health and citizens' daily lives. In this study, we employ the technology–organization–environment (TOE) framework to investigate public procurement officials' adoption of spend analytics in Norway. Based on an analysis of survey data from 529 Norwegian procurement entities collected by the Norwegian Agency for Public and Financial Management, we find that 61% do not utilize spend analytics, with adoption rates varying across different types of entities. A correlation analysis indicates that procurement analysis competencies are significantly associated with higher adoption rates, highlighting the critical role of analytical skills. Organizational factors such as procurement volume and a centralized purchasing unit are positively linked to the use of spend analytics. Environmental factors offer a contrasting picture: while specific factors seem to drive spending analytics adoption, a strong orientation towards sustainability and competency challenges may hinder it. These findings encourage a systemic look at how the public procurement system could be more data-driven.