Impact of ERP Implementation, Process Automation, and Supplier Governance on Project Cost Efficiency: Evidence from Vision 2030 Projects in Saudi Arabia

Abstract

This study examines the impact of ERP implementation, process automation, and supplier governance on project cost efficiency in large-scale construction projects executed under Saudi Arabia’s Vision 2030 framework. The research aims to assess how digital transformation in procurement and commercial management enhances cost optimization, transparency, and operational control. A quantitative approach was employed, utilizing a structured questionnaire administered to sourcing, procurement, and quantity-surveying professionals involved in infrastructure projects across major Saudi cities, including Riyadh, Jeddah, and Al-Ula. A total of 300 valid responses were analyzed using Structural Equation Modeling (SEM). Results reveal that ERP implementation significantly streamlines procurement workflows and enables data-driven decision-making, while process automation improves operational efficiency and reduces processing time. Collectively, these factors positively influence project cost efficiency and align with the national objectives of sustainable and transparent infrastructure development. The study contributes to the growing literature on digital procurement transformation in developing economies and provides practical insights for project managers, policymakers, and construction organizations seeking to enhance value creation through integrated digital governance systems.