INFLUENCE OF PROCUREMENT SYSTEM INTEGRATION ON SUPPLY CHAIN PERFORMANCE IN KENYA'S STATE CORPORATIONS

SCHOLASTICA WANJIKU MUCHIRI, DR. MAKORI MORONGE (Ph.D)

Abstract


This study looked into the influence of procurement system integration on supply chain performance in Kenya’s State Corporations. The study targeted all the 128 state corporations in Kenya which were 128 in total. The study used descriptive research design. Primary data was collected using the questionnaire. Descriptive statistics such as mean and frequencies and inferential statistics (regression and correlation analysis) were used to perform data analysis. Primary data collected using questionnaires was adopted for the study. The study findings indicated employee skills, ICT applications, costs, quality management and time management significantly and positively influences effective procurement system integration on supply chain performance in Kenya’s State Corporations. The study concluded that state corporations should enhance their employees’ skills, integrate their procurement system to create awareness on system management, ensure there is sufficient ICT applications, integrate their procurement system so as to ensure there is short transaction cycle. The study recommended supply chain companies in state corporations to adopt integrated procurement systems so as to enhance their employees skills thereby leading to awareness on system management. The study further recommended state corporations to equip their employees with relevant skills especially with respect to system utilization. The study recommended state corporations to ensure enhanced their employee skills through integrated procurement systems. There is also need for state corporations to ensure they have integrated procurement system. Supply chain companies in state corporations to ensure they adopt integrated procurement systems to enhance their Enterprise resource planning. Further, supply chain companies to enhance the integration of their procurement systems as it has a positive influence on overall organization quality management. To ensure there is total quality management, supply chain companies in state corporations in Kenya should integrate their procurement systems. Supply chain companies in Kenya should adopt integrated procurement systems.

Key Words: Employee Skills, ICT Applications, Costs, Quality Management, Time Management, Procurement Systems


Full Text:

PDF

References


Andreas, W., & Marcus, W. (2011). Supply-Chain-Management. Berlin: Stürmischen Zeiten printers.

Awino, B. (2011). An empirical investigation of selected strategy variables on firm’s performance: A study of supply chain management in large private manufacturing firms in Kenya, Journal of Public Administration and Policy Research, 3(8), 228-236.

Baily, P. (2008). Procurement principles and management. Harlow, England: Prentice Hall Financial Times.

Bandiera, O., Prat, A., & Valletti, T. (2009). Active and Passive waste in government spending; Evidence from a policy experiment. America economy review, 99(4), 78-189.

Benbasat, I., & Barki, H. (2007). Quo vadis, TAM? Journal of the Association of Information Systems, 8 (4), 211–221.

Brandon, N. (2012). Guide to e-procurement in the public sector: cutting through the hype. London: Government press.

Chuttur, M. (2009). Overview of the Technology Acceptance Model: Origins, Developments and Future Directions, Indiana University, USA, Sprouts: Working Papers on Information Systems.

Clark, T. (2006). Performance, interdependence and coordination in businessto business electronic commerce and supply chain management, AlphenaandenRijn: Kluwer Academic Publishers.

Cooper, D., & Schindler, P. (2006). Business Research Methods: empirical investigation, Journal of Service Research, 1(2), 108-28.

Cullen, K. (2016). Procurement efficiency and effectiveness. Retrieved on 20th march 2017 from: http://www.sourcesuite.com/procurement-learning/purchasing-articles/efficient-versus-effective-can-you-be-both.jsp.

Deloitte, W. (2015). Economic benefits of better procurement practices, retrieved from: http://www.consultaustralia.com.au/docs/default-source/infrastructure/better-procurement/dae---consult-australia-final-report-050215

Denjean, V., Dion, H., & Huo, R. (2015). Green public procurement in china. The International Institute for Sustainable Development, 3(1), 12-67.

Douma, S., & Schreuder, H. (2012). Economic Approaches to Organizations, 5th ed. London: Pearson.

Eacc annual report 2014-2015. (2016). Retrieved on 20th Feb 2017; from: http://www.eacc.go.ke /docs /annual _report_2014-2015.pdf.

Erridge, A. (2007). Public Procurement; Public procurement, public value and the Northern Ireland unemployment pilot Project. Public Administration, 85(4), 1023 – 1043.

Ghaith, M., Ayman, B., & Hamdan, K. (2014). The Impact of Supplier Relationship Management on Competitive Performance states corporation, International Journal of Business and Management, 9(2), 192-200.

Ghoshal, S., & Moran, P. (1996). Bad for practice. A critique for transaction cost theory. The academy of management review, 21(1), 13-47.

Giunipero, L., Handfield, B., & Eltantawy, R. (2006). Supply management’s evolution: key skill sets for the supply manager of the future. International Journal of Operations & Production Management, 26 (7), 822-844.

Hassan, A. (2012). Procurement practices in Kenya's Public Corporations. Unpublished MBA project, University of Nairobi.

Hudgson, M. (2010). Limits if transaction cost analysis. Retrieved on 20th march 2017 from: https://www.researchgate.net/publication.

Hughes, J. (2008). From, vendor to partner, why and how leading companies collaborate with suppliers for competitive advantage. Global business and organizational excellence, 27(3), 21-37.

Irny, S., & Rose, A. (2005). Designing a Strategic Information Systems Planning Methodology for Malaysian Institutes of Higher Learning (isp- ipta), Issues in Information System, Vol 6(1), 20-25.

Kamau, J., & Murangi, M. (2016). The public procurement and Asset disposal ACT. Retrieved on 12/1/ 2017 from: http://www.ikm.co.ke/news/articles/2016/public-procurement-act.html

Kariuki, C. (2009). Impact of regional Procurement reforms on the development of a national private sector, KEPSA; Kenya.

Klaes, M. (2008). Transaction costs, history of, The New Palgrave Dictionary of Economics, 2nd E.d. Durlauf: SN and Blume publishers.

Kothari, C. (2004). Research Methodology. Methods and techniques. Delhi: New Age International Publishers.

Kraljic, P. (2010). Purchasing must become supply management. Harvard business review, 61(5), 109-117.

Krause, D.R., Pagell, M. & Curkovic, S. (2010). Toward a measure of competitive priorities for purchasing, Journal of Operations Management, 1(9), 497-515.

Krause, R., Pagell, M., & Curkovic, S. (2015). Toward a measure of competitive priorities for purchasing, Journal of Operations Management, 19(2), 497-515

Legris, P., Ingham, J., & Collerette, P. (2003). Why do people use information technology? A critical review of the technology acceptance model, Information & Management, 40(3), 191-204.

Lungisa, F. (2015) Public sector supply chain management. South Africa procurement review journals, 40(1), 80-101.

Mburu, J., & Njeru. M. (2014). Procurement Performance Measurement in Kenya. Unpublished Thesis. University of Nairobi.

Mcfarland, D., & Hamilton, D. (2006). Adding contextual specificity to the technology acceptance model. Computers in Human Behavior, 22(3), 427-447.

Mettler, T., & Rohner, P. (2009). Supplier Relationship Management: A Case Study in the Context of Health Care. Journal of Theoretical and Applied Electronic Commerce Research. 4 (3), 58–71.

Michael, P. (2008). Research Design. New Jersey: Prentice Hall.

Mindila, A. (2008). E-procurement: enabling smart management in the procurement function: A case of Jomo Kenyatta University of Agriculture and Technology.

Mkhize, Z. (2016). Supply Chain Management Conference: Transforming Government Procurement System. Paper presented at the Supply Chain Management Conference, 22– 23 Nov, Durban, Republic of South Africa.

Mokaya, R. (2016), Determinants of E-procurement and challenges in Kenya, unpublished thesis. A case of Moi Teaching & Referral Hospital.

Momiwand, A., & Shahin, A. (2012) Lead Time Improvement by Supplier Relationship Management with a Case Study in Pompaj Firm. World Applied Sciences Journal, 16(5), 20-42.

Mugenda, O., & Mugenda, A. (2003). Research methods; Quantitative and qualitative approaches. Africa centre for technology: Nairobi.

Mugenda, O., & Mugenda, A. (2008). Research methods; Africa centre for technology: Nairobi. Kenya.

Murray, J. & Rentell, G. & Geer, D. (2008). Procurement as a shared service in English Local Government. International Journal of Public Sector Management, 21(5), 540-555.

Naji, M. (2015). E-procurement and organizational performance. Retrieved on 20th march 2017 from:https://www.linkedin.com/pulse/e-procurement-organizational-performance mohammed-naji-al-hashimi.

Niehans, J. (2007). Transaction costs, The New Palgrave. Journals of Economics, 4(2), 677–80.

Nyagaka, W., Ngari, J., & Richu, S. (2014). Employees’ Level of E-Procurement Skills as a Challenge Facing the Implementation of Electronic Procurement System. International journal of science and research, 3(4), 499-502.

Nyangweso, W. (2013). Collaborative public procurement and performance among state corporations in Kenya, unpublished thesis, university of Nairobi.

Ochieng, J., & Muehle, S. (2014). Development and Reforms of Public procurement reforms. Nairobi: Moran EA publishers.

Odhimbo, W. (2008). Procurement lessons from east Africa. Public procurement journals, 6(11), 111-208.

Ondari, E. N. (2015). The effect of top management team diversity and competitive environment on the relationship between diversification strategy and performance of companies listed in the Nairobi Securities Exchange (Masters dissertation, University of Nairobi).

Pauw, S. (2014). Public procurement and supply chain management. Study Guide, programme in Public Procurement and Supply Management. Pretoria, South Africa: Centre for Business Management, University of South Africa.

Prat, A., Valletti, T., & Bandiera, O. (2009). Active and passive wastage in government spending. America economic review journal, 99(4), 1278-1308

Quamrul, H. (n.d). The Africa Region Harnesses Integrated e-Government Procurement (e-GP) Systems in Pursuit of Transparency and Integrity. Retrieved on 31st January 2017, from https://wbnpf.procurementinet.org/featured/africa-region-harnesses-integrated-e-government-procurement-e-gp-systems-pursuit.

Richey, R., Roath, A., Whipple, J., & Fawcett, S. (2010).Exploring a Governance Theory of Supply Chain Management: Barriers and facilitators to Integration. Journal of Business logistics, 31(1), 237 – 246.

Rotich, L. M. (2011). Influence of Planning on Procurement Performance in the Kenya Public Financial Sector. Nairobi: Moran EA publishers.

Sauber, M. (2008). Developing supply chain management program: a competency model, Quality assurance in Education, 16(4), 375- 391.

Selko, A. (2007) E-Procurement Provides Significant Cost Savings. Retrieved on: February 05, 2016 from: http://www.industryweek.com/companies-amp-executives/e-procurement-provides-significant-cost-savings.

Sharonov, V. (2012). Improvement on procurement procedures, Recommendations and materials prepared by the Industrial Companies Working Group. International business leadership, 3(9), 12-45.

Thai, S. (2008). Procurement strategy implementation. New Jersey: Prentice Hall.

Vaidya, K., Sajeev, & Callendar, G. (2008). Critical Success Factors that Influence E Procurement Implementation Success in The Public Sectors. Journal of Public Procurement, 3(1), 30-78.

Vaughan, B. (2015). Background of colla borative procurement. Retrieved on 18th October 2015, from: www.constructingexcellence.org.uk.

Venkatesh, M., Morris, B., & Davis, D. (2003). User acceptance of information technology: toward a unified view, MIS Quart., 27 (3), 425–478.

Verhage, R., van de Gronden, J., Awanyo, K., & Boateng, S. (2012) Procurement reform in the Ghana public Sector. Journal of Public Procurement, 2(2), 261-268.

Weele, A., & Van, J. (2010). Purchasing and supply chain management: Analysis, strategy, planning and practice (5th Ed.). Andover: Cengage Learning.

Williamson, E. (2011). The Economics of Organization: The Transaction Cost Approach. The American Journal of Sociology, 87(3), 548-577.

Wisner, J. (2003). A Structural Equation Model of Supply Chain Management Strategies and Firm Performance. Journal of Business Logistics, 24(1), 1–26.

Wu, J., & Wang, C. (2005). What drives mobile commerce? An empirical evaluation of the revised technology acceptance model. Information and Management, 42 (5), 719–729.

Wulf, L., & Sokol, J. (2014). Customs Modernization Handbook. Washington, DC: World Bank publications.




DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1392

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.