DOES E-PROCUREMENT SOLVE INDONESIA LOCAL GOVERNMENT BUDGETARY SLACK THROUGH IT ADAPTIVE CULTURE?

This study aims to analysis the effect of e-procurement capability to budgetary slack in Indonesia local government. It also analyze the moderation effect of IT adaptive culture in e-procurement capability to budgetary relationship. Questionnaires was delivered to a sample of e-procurement service unit (ULP) through electronic mail. ULP is the service unit for Indonesia government procurement implementation. Research finding shows that e-procurement is negatively associated with budgetary slack which was -0,19 (p<0,01). Another finding also indicates that for the high adaptive culture, the budgetary slack is negatively associated with e-procurement. It means that there is an interaction between IT adaptive culture and e-Procurement that affects budgetary slack. For users with high IT adaptive culture, increasing e-procurement capability will decrease budgetary slack.