CRITICAL SUCCESS FACTORS IN THE IMPLEMENTATION OF E-PROCUREMENT IN THE PUBLIC SECTOR: A CASE OF RURAL ELECTRIFICATION AUTHORITY (REA)
Abstract
E-procurement is the technology-enabled acquisition of goods and services required by an organization at the best value obtainable. The goal is the right product or service, at the right place, at the right time, at the right price in the most efficient manner possible. This study was aimed at identifying the Critical Success Factors, CSFs, in E-procurement in the public sector which had helped to improve the performance of procurement department at Rural Electrification Authority, R.E.A. The research design chosen for this study was a case study. The target population was all the employees at REA. The sample size was about five employees from each department and about 60% of employees in the procurement department as it was the main beneficiary of the study. The sample size was selected using random sampling technique. The instrument used for data collection was a semi-structured questionnaire, which consisted of two parts: Part A contained general information about the respondents, while part B gathered information needed to answer the research questions. The data was analyzed using descriptive statistics. The findings were presented in form of tables and graphs accompanied by detailed discussions. From the findings the researcher established that Stakeholder Participation, Government Policy, Monitoring and Evaluation as well as Capacity Building all had significant influence on the implementation of E-procurement in the public sector, as the correlation analysis revealed with all having a p-value (Sig. = .000) below the threshold of .05.
Key Words: Stakeholder Participation, Government Policy, Monitoring and Evaluation, Capacity Building, E-procurement
CITATION: Chigadi, E. K. A., & Gekara, M. (2020). Critical success factors in the implementation of e-procurement in the public sector: A case of Rural Electrification Authority (REA). The Strategic Journal of Business & Change Management, 7(2), 727 – 744.
Full Text:
PDFReferences
Aberdeen Group (2005). Best Practices in E-procurement. Aberdeen Group, Boston, 11-15.
Acevedo, G. L., Rivera, K., Lima, L., & Hwang, H. (2010, June). Challenges in monitoring and evaluation: an opportunity to institutionalize M&E systems. In Fifth Conference of The Latin American and The Caribbean Monitoring and Evaluation Network.
Alala, O. B., & Deya, F. O. (2013). Effectiveness and efficiency of public procurement and disposal Act in shaping competitive purchasing and disposal in the civil service in Kenya. International Journal of Innovative Research and Development|| ISSN 2278–0211, 2(6).
Amit, R., & Zott, C. (2001). Value creation in e‐business. Strategic management journal, 22(6‐7), 493-520.
Angeles, R., & Nath, R. (2007). Business-to-business e-procurement: success factors and challenges to implementation. Supply Chain Management: An International Journal, 12(2), 104-115.
Asare, T. (2009). Internal auditing in the public sector: Promoting good governance and performance improvement. International Journal on Governmental Financial Management, 9(1), 15-28.
Authority, P. P. O. (2007). Assessment of the procurement system in Kenya. Nairobi: PPOA.
Balchin, J (2001). Strategic Enlightenment. Logistics Europe, Issue: September, pp 16-19. LULEA: University of Technology Division of Industrial Marketing & E-commerce, 154.
Bilali, J. (2015). Factors influencing the Adoption of e-Procurement: A case of Garissa County Government. Strategic Journal of Business & Change Management, 2(1).
Bridoux, F. (2004). A resource-based approach to performance and competition: an overview of the connections between resources and competition (No. IAG Working Papers (2004/110)). UCL.
Buy IT Best Practice Network Report (2002). Building the Business Case for E-procurement/ ROI, Issued by the BuyIT Best Practice Network.
Callender, G., & Schapper, P. (2003). Public procurement reform in Australia: A federal-state evaluation. International Research Study of Public Procurement, University of Bath, Bath, 48-61.
Carayannis, E. G., & Popescu, D. (2005). Profiling a methodology for economic growth and convergence: learning from the EU e-procurement experience for central and eastern European countries. Technovation, 25(1), 1-14.
Chan, C., & Swatman, P. M. (1998, June). EDI implementation: a broader perspective. In Bled’98”-11th International Conference on Electronic Commerce (pp. 8-10).
Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management science, 36(2), 123-139.
Corsi, M. and Gumina, A. (2006). How E-government May Enhance Public Procurement. Retrieved from United Nations Procurement Capacity Development Centre website.
Croom, S., & Brandon-Jones, A. (2004). E-procurement: Key issues in inventory control implementation and operation in the public sector.Top of Form
Croom, S., & Brandon-Jones, A. (2007). Impact of e-procurement: experiences from implementation in the UK public sector. Journal of Purchasing and Supply Management, 13(4), 294-303.
Croom, S.R (2001). “The Impact of Web-Based Procurement on Management of Operating Resources Supply,” The Journal of Supply Chain Mnagement (Winter 2000): 4-13.
Croom, S.R (2005). “The Impact of E-business on Supply Chain Management, An empirical study of key developments, International Journal of Operations & Production Management”,Vol. 25 No. 1, 55-73.
Dai, Q. and Kauffman, R.J (2002). Busiess Models for Internet-Based B2B Electronic Markets. International Journal of Electronic Commerce, 6(4), 41-72.
Dai, Q. and Kauffman, R.J (2005). “To Be or Not to B2B: Evaluating Managerial Choices for E-procurement Channel Adoption”,Info. Tech. Mngmt., 155
Dai, Q., & Kauffman, R. J. (2001, January). Business models for Internet-based e-procurement systems and B2B electronic markets: an exploratory assessment. In System Sciences, 2001. Proceedings of the 34th Annual Hawaii International Conference on (pp. 10-pp). IEEE.
Day, G.S., Fein, A.J. and Ruppersberger, G. (2003), “Shakeouts in digital markets lessons from B2B exchanges”, California Management Review, Vol. 45 No. 2, pp. 131-150.
Eakin, D. (2003). Measuring E-procurement Benefits. Government procurement, 16(8), 6-12. Emergmed 2003, 20, 54-60.
Freiling, J., & Baron, T. (2017). A Resource-based View of Entrepreneurial Ecosystems. In Technologie, Strategie und Organisation (pp. 65-84). Springer Fachmedien Wiesbaden.
Gadde, L.E. and Hakansson, H (2001). Supply Chain Network Strategies, Chichester: John Wiley & Sons.
Ginzberg, M. J. (1980). An organizational contingencies view of accounting and information systems implementation. Accounting, Organizations and Society, 5(4), 369-382.
Giunipero, L. C. and Sawchuk, C (2000). E-procurement Plus: Changing the Way Corporations Buy, Goshen (NY): JGC Enterprises.
Greenberg, S. (2004). Beyond the Bid: an Evaluation of State and Local Government Procurement Practices; PRP 146. LBJ School of Public Affairs.
Gunasekaran, A., & Ngai, E. W. (2008). Adoption of e-procurement in Hong Kong: an empirical research. International Journal of Production Economics, 113(1), 159-175.
Hardy, C. A., & Williams, S. P. (2008). E-government policy and practice: A theoretical and empirical exploration of public e-procurement. Government Information Quarterly, 25(2), 155-180.
Hendriks, C. J. (2013). Integrated Financial Management Information Systems: guidelines for effective implementation by the public sector of South Africa: original research. South African Journal of Information Management, 15(1), 1-9.
Knudsen, D. (2003). Improving Procurement Performance with E-business Mechanisms, Lund University, Lund, Sweden.
Koorn, R., Smith, D., & Müller, C. (2001). e-Procurement and Online Marketplaces. The Netherlands: Compact.
Kothari, C.R. (2004). Research methodology: methods and Techniques, 2nd Ed, New Age International Publishers.
Kraaijenbrink, J., Spender, J. C., & Groen, A. J. (2010). The resource-based view: a review and assessment of its critiques. Journal of management,36(1), 349-372.
Lewa, P. M., & Lewa, S. K. (2010). Public Procurement Reform in Emerging Economies: A Case Study of Kenya. Handbook of Business Practices and Growth in Emerging Markets, 275.
Machoka, P., Were, S. & Letting, N. (2015). The effects of government policies on e-payment. International Journal of Current Business and Social Sciences, 1(4)
MacManus, S. A. (2002). Understanding the incremental nature of e-procurement implementation at the state and local levels. Journal of Public Procurement, 2(1), 5.
Maniatopoulos, J. L. G., & Leukel, J. (2005). A comparative analysis of product classification in public vs. private e-procurement. Electronic Journal of e-Government, 3(4), 201-212.
Mann, C.J. (2008). Observational Research methods: Cohort, cross-sectional, and case studies.
Marcin, B. (2002). C-commerce. Would mixing ERP, CRM, E-procurement and SCM be an efficient strategy for the future? (Business Solution Management, 2002)
Marshall, C and Rossman G (2000). Designing qualitative research 3rd Ed.,Thousands Oaks-CA: Sage.
Mbae, L. N. (2014). Public procurement law and procurement performance of county governments in Kenya: Case of Machakos county government (Doctoral dissertation, University Of Nairobi).
McKie, Stewart (2001). E-business best practices: leveraging technology for business advantage, Wiley, New York.
Mgidlana, L. M. (2013). Factors affecting the adoption of e-procurement technologies from the supplier perspective.
Mishra, C. S., & Zachary, R. K. (2014). The Entrepreneurial Value Creation Theory. In The Theory of Entrepreneurship (pp. 253-292). Palgrave Macmillan US.
Muyoyo, J. L. (2004). Factors influencing the adoption and implementation of e-business technologies in companies quoted at the Nairobi Stocks Exchange. Unpublished MBA thesis, University of Nairobi.
NECCC E-procurement Work Group (2002). E-procurement Failure to Implement, Not an Option!
Neef, D (2001). E-procurement: From Strategy to Implementation, London: Financial Times Prentice Hall.
Neef, D. (2001). E-Procurement: From strategy to implementation. FT press.
Nkonge, M. K., & Ngugi, K. (2014). Constraints of effective implementation of public procurement reforms in Kenya: A case of Nairobi City County'.European Journal of Business Management, 2(1).
Obiero, M. (2008). The challenges in the implementation of the 2005 procurement act in the Kenyan Ministry of Higher Education, Science and Technology (Doctoral dissertation, University of Nairobi,).
Panda, P., Sahu, G. P., & Gupta, P. (2010). Promoting transparency and efficiency in public procurement: E-procurement initiatives by government of India.
Rajkumar, T. M. (2001). E-procurement: business and technical issues. Information Systems Management, 18(4), 52-60.
Rajkumar, T.M (2001). “E-procurement: Business and technical issues”, Information Systems Management, 18 (4), 52-62.
Rotich, G. K., & Okello, B. (2015). Analysis of Use of E-Procurement on Performance of the Procurement Functions of County Governments in Kenya. International Journal of Economics, Commerce and Management, 3(6), 1381-1398.
Saeed, K.A. and Leith, R.A. (2003), “Controlling sourcing risks in electronic marketplaces”, Electronic Markets, Vol. 13 No. 2, pp. 163-172.
Smith, A. D. (2009). The impact of e-procurement systems on customer relationship management: a multiple case study. International Journal of Procurement Management, 2(3), 314-338.
Srinivasan, R., Lilien, G. L., & Rangaswamy, A. (2002). Technological opportunism and radical technology adoption: An application to e-business. Journal of Marketing, 66(3), 47-60.
Subramaniam, C., & Shaw, M. J. (2004). The effects of process characteristics on the value of B2B e-procurement. Information Technology and Management, 5(1-2), 161-180.
Thai, K. V. (2009). International handbook of public procurement. Boca Raton, FL: CRC Press.
Vaidya, K., Callender, G., Sajeev, A. S. M., & Gao, J. (2004, April). Towards a model for measuring the performance of e-procurement initiatives in the Australian public sector: a balanced scorecard approach. In Australian e-Governance Conference, April (pp. 14-15).
Vaidya, K., Sajeev, A. S. M., & Callender, G. (2006). Critical factors that influence e-procurement implementation success in the public sector. Journal of public procurement, 6(1/2), 70.Bottom of Form
Vaidya, K., Sajeev, A. S. M., & Callender, G. (2006). Critical factors that influence e-procurement implementation success in the public sector. Journal of public procurement, 6(1/2), 70.
Vaidya, K., Sajeev, A. S. M., & Callender, G. (2006). Critical factors that influence e-procurement implementation success in the public sector. Journal of public procurement, 6(1/2), 70.
Vaidya, K., Sajeev, S.M and Callender, G (2006). “Critical Factors that Influence E-procurement Implementation Success in the Public Sector,” Journal of E-procurement 6(1/2), 70-99
Vaidya, K., Yu, P., Soar, J., & Turner, T. (2003). Measuring the performance of e-procurement implementations in the Australian Public Sector. Building Society through e-Commerce: e-Government, e-Business and e-Learning, 47-61.
Vaidyanathan, G., & Devaraj, S. (2008). The role of quality in e-procurement performance: An empirical analysis. Journal of Operations Management, 26(3), 407-425.
Weele,A.J (2001). Purchasing and Supply Chain Management: Analysis, Planning and Practice 3rd revised edition, London, England: Thomson International.
Wittig, W. A. (2003). Public procurement and the development agenda. International Trade Centre, Geneva.
World Bank (2001). Standard Bidding Documents: Procurement of Works: New York, World Bank, 14-18.
Wyld, D.C (2002). The Electric Company: How the Supply Chain is being Reinvented Through the Rapid Application of E-procurement Processes in the Business-to-Business Arena, Management Research News, Vol. 25, pp. 22-53.
Yen, B.P.C and Ng, E.O.S. (2002), “Migrating procurement onto the internet”, Electronic Commerce Research, Vol. 2 pp. 113-134.
DOI: http://dx.doi.org/10.61426/sjbcm.v7i2.882
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.