Adoption and Risks of Electronic Procurement Among Automated Teller Machine Solutions Providers in Kenya

Abstract

The purpose of the study is to examine the extent, risks and the determinants of eprocurement adoption among the ATM solution provider in Kenya. ATM solution provision and the related self service financial solution is being give prominence by financial services providers with major players such as banks consistently increasing offering and encouraging customers to transact directly from the strategically located ATM terminals. The study employs an extended multi method case study method of eprocurement in four automated teller machine solution providers in Kenya. A two stage methodology is adopted, case studies of e-procurement adoption risks issues and a questionnaire on the determinants of e-procurement adoption. The study finds varied forms of e-procurement is being applied by the organizations prominent of which is e-informing which is indicative of electronic interaction with the procurement environment. Further, the risks of e-procurement adoption were found to be a function of threats, vulnerabilities and business function related. The findings father revealed the determinants of e-procurement to include organizational relating adoption to size, readiness, strategic and supply factors. In as much as there is strategic advantages in adoption of e-procurement, the study recommends that organizations should not oblivious of the detrimental risks associated with electronic procurement technologies. It is recommended that the adopting organization must develop a clear framework of identifying and mitigating the risks arising. The research is limited to the Automated Teller Machine solution providers yet could have implications for other complex systems of organizations, such as the retail and public sectors therefore e-procurement needs to be considered in other context of policy objectives. Much research on electronic procurement has been done on the context of developed countries. The therefore study contributes to the small but growing studies of e-procurement in a localised country sectors setting.