A Study of Behavioral Factors Influencing Financial Decision Making in E-Procurement Systems

Dr. Shalini P1, Manikandan R2

1DR. P. Shalini, Assistant Professor, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

2Manikandan R, Student, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

Abstract - This study examines the impact of purchase management on cost control with special reference to Larsen & Toubro. Effective purchase management is critical in large engineering and construction organizations where a major share of project costs is associated with procurement activities. The research focuses on how financial planning, supplier selection, inventory control, and procurement strategies influence cost efficiency and organizational profitability. It also analyzes behavioral factors affecting financial decision-making within e-procurement systems, including risk perception, employee experience, and technology adoption. The study adopts a descriptive research design and uses primary data collected through structured questionnaires from finance and procurement employees. Statistical tools such as normality tests, Chi-square, Mann-Whitney U, and Spearman correlation are applied for analysis. Findings reveal that effective procurement practices and digital systems enhance transparency, reduce unnecessary expenditure, and improve financial performance. The study concludes that strategic purchase management significantly strengthens cost control and supports sustainable organizational growth.

Key Words: Purchase Management (PM),Cost Control (CC),E-Procurement Systems, (EPS) Financial Decision Making (FDM),Vendor Selection (VS), Inventory Management (IM), Behavioral Factors (BF), Cost Efficiency (CE).