INFLUENCE OF E-PROCUREMENT ON PERFORMANCE OF STATE CORPORATIONS IN KENYA
Abstract
The purpose of this study was to establish how E-procurement influence performance of state corporations in Kenya. The study employed descriptive research design with sample population of 127 State Corporations in Kenya. The study used primary data which was collected using a comprehensive questionnaire. Quantitative data collected was analysed by the use of descriptive statistics using SPSS (version 23). The study findings indicated a very strong postive relationship between the independent variables and depedent variable. The study concluded that the set of independent variables were very significant and they therefore needed to be considered in any effort to enhance perfomance of the state corporation in Kenya. The study recommended that there was need to enhance E-Ordering to enhance electronic preparation of specification to facilitate error reduction in the specifications for the goods to be procured. E-ordering also enhances electronic advertisement of tender and transmission of bid documents to tenderers for filling can reduce the bureaucracy in the bid evaluation process to enhance time savings. The study recommended that E-sourcing can foster integrity in the procurement process. It can also facilitate evaluation improvement especially on the audit trail in bid evaluation thus contributing to transparency in the tendering process. It can also enhance transmission of contract awarded results to bidders to enhance faster dissemination of information. The study recommended for the E-ordering especially for electronic preparation of purchase order to enhance error reduction to foster accuracy in the orders prepared. The electronic approval of purchase can help the supplier minimize manual paper trail thus reduction in the stationery expenses. This would facilitate the faster information exchange thus good buyer/supplier relationship. Electronic transmission of purchase order to the supplier allows faster delivery of goods. The study recommended for E-Invoicing especially receiving of invoices from the suppliers allows error reduction in the invoices thus enhancing accuracy of invoice details. Electronic approval of invoices allowed management to visualize the status on each tendering process thus enhanced transparency.
Key Words: E-tendering, E-sourcing, E-ordering, E-invoicing, State Corporations
CITATION: Ingavo, J. A., & Moronge, M. (2019). Influence of e-procurement on performance of state corporations in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 348 – 362.
Full Text:
PDFReferences
Ajam, M., Alshawi, M., & Mezher, T. (2010). Augmented process model for e-tendering: towards integrating object models with document management systems. Automation in Construction, 19(6), 762-778.
Amayi, F. K., & Ngugi, G. K. (2013). Determinants of public procurement performance in Kenya: Case Ministry of Environment, Water and Natural Resources. International Journal of Social Sciences and Entrepreneurship, 1(5), 647-667.
Amin, K. A. (2012). Electronic procurement and organizational performance among commercial state corporations. Unpublished MBA Project, University of Nairobi, Nairobi, Kenya.
Anthony Giddens. (1984). The constitution of society: Outline of the theory of structuration. Univ of California Press.
Basheka, B. C., Oluka, P. N., & Mugurusi, G. (2012). Adopting new approaches for public procurement efficiency: critical success factors (CSFs) for the implementation of e-procurement in Uganda’s public sector. International Journal of Procurement Management, 5(6), 712-732.
Bryman, A. (2016). Social research methods. Oxford university press.
Davis, F. D., & Venkatesh, V. (1996). A critical assessment of potential measurement biases in the technology acceptance model: three experiments. International journal of human-computer studies, 45(1), 19-45.
Gathima, J. I., & Njoroge, J. G. Effects Of E-Tendering On Organization Performance In Public Sector: A Case Of Nairobi City County Government.
Hsin Chang, H., Tsai, Y. C., & Hsu, C. H. (2013). E-procurement and supply chain performance. Supply Chain Management: An International Journal, 18(1), 34-51.
Ibem, E. O., & Laryea, S. (2015). e-Procurement use in the South African construction industry. Journal of Information Technology in Construction, 20, 364-384.
Kamotho, K. D. (2014). E-Procurement and procurement performance among state corporations in Kenya. An unpublished master’s thesis of the University of Nairobi.
Kinoti, J. T. (2013). E-procurement adoption by government parastatals in Kenya: the supplier perspective. The School of Business, University of Nairobi.
Kimutai, B., & Ismael, N. S. (2016). Role of strategic e-sourcing practices on supply chain performance in state corporations in Kenya: A case of Kenya Electricity Generating Company Ltd. International Academic Journal of Procurement and Supply Chain Management, 2(2), 113-133.
Kumar, V. N., & Srinivasan, B. (2013). Implementation and Performance Effect on Electronic Procurement and its Ship Management Companies. International Journal of Information Engineering and Electronic Business, 5(5), 10.
Marshall, C., & Rossman, G. B. (2014). Designing qualitative research. Sage publications.
Matunga, D. A., Nyanamba, S. O., & Okibo, W. (2013). The effect of e-procurement practices on effective procurement in public hospitals: A case of Kisii level 5 hospital. American International Journal of Contemporary Research, 3(8), 103-111.
Mathieson, K., Peacock, E., & Chin, W. W. (2001). Extending the technology acceptance model: the influence of perceived user resources. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 32(3), 86-112.
Maxwell, J. A. (2012). Qualitative research design: An interactive approach (Vol. 41). Sage publications.
MESO, B. (2010).Study on public E-Procurement in Kenya 0III43O 2 (Doctoral dissertation, University of NAIROBI).
Mose, J. M., Njihia, J. M., & Magutu, P. O. (2013). The critical success factors and challenges in e-procurement adoption among large scale manufacturing firms in Nairobi, Kenya. European Scientific Journal, ESJ, 9(13).
Mugenda, A. G., & Mugenda, A. G. (2012). Research methods dictionary. Nairobi, Kenya: Applied Research & Training Services.
Muhia, D. W., & Afande, F. O. (2015). Adoption of E-Procurement Strategy and Procurement Performance in State Corporations in Kenya (A Case of Kenya Revenue Authority). Industrial Engineering Letters, 5(6), 2224-6096.
Munene, I. W., Namusonge, G. S., & Iravo, M. (2017). Factors affecting the implementation of management information system in selected financial cooperatives in Nairobi.
Ngeno, R. K., & Omwenga, J. Q. (2015). Factors contributing to adoption of eprocurement in County Governments: A Case Study of County Government of Bomet. International Journal of Academic Research in Business and Social Sciences, 5 (10).
Nyangaresi, E. N. (2016). Stakeholder perception on implementation of public E-procurement in Kenya (Doctoral dissertation, Strathmore University).
Oketch, C. A. (2014). Implementation of the government electronic procurement system in the county of Mombasa, Kenya. Unpublished Master Thesis, Nairobi: University of Nairobi.
Oliveira, T., & Martins, M. F. (2011). Literature review of information technology adoption models at firm level. Electronic Journal of Information Systems Evaluation, 14(1), 110.
Orina, D. O. R. O. T. H. Y. (2013). E-procurement readiness factors in Kenya’s Public sector. Unpublished Master’s Thesis). University of Nairobi, Kenya.
Osir, E. O. (2016). Role of e-procurement adoption on procurement performance in state corporations in Kenya: A case of Kenya Utalii College. International Academic Journal of Procurement and Supply Chain Management, 2(1), 66-100.
Oteki, E. B. (2019). Influence of Electronic Procurement Practices on Supply Chain Performance of Sugar Processing Firms in Kenya (Doctoral dissertation, JKUAT-COHRED).
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.
Shale, N. I. (2015). Role of e-procurement strategy on the performance of state corporations in Kenya (Doctoral dissertation).
Yin, R. K. (2017). Case study research and applications: Design and methods. Sage publications.
Vaidya,K,Saseev,A.S.M & Callender,G.(2006) “Critical factors that influence e-Procurement implementation success in thev Public sector”Jornal of public procurement,6(1830,70-99
Veit, D. J., Parasie, N. P., & Huntgeburth, J. C. (2011, January). E-Procurement Adoption at the Municipal Level: Influence of Organizational, Technological and Environmental Factors. In 2011 44th Hawaii International Conference on System Sciences (pp. 1-10). IEEE.
Wainaina, M. (2014). The effects of integrated financial management information system on financial performance of commercial state corporations in Kenya. Unpublished MBA Project, University of Nairobi.
Zhang, J. J., Kim, M., & Pifer, N. D. (2015). Importance of theory in quantitative enquiry. Routledge handbook of theory in sport management. New York, NY: Routledge.
Wang, N. (2003). Measuring transaction costs: an incomplete survey. Ronald Coase Institute, Working Paper, 2.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1117
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.