Impact of electronic procurement on the performance of private universities in Nairobi County
Abstract
The growth of information technology has transformed the way business is conducted.
The internet has revolutionized the way organizations transact externally. Procurement
being a major expenditure function, e-procurement has been advocated to bring about
efficiency and effectiveness in the procurement process. The study aimed to achieve
two objectives; Extent to which e-procurement is practiced by the private universities
within Nairobi county and the impact of e-procurement on their performance. Crosssectional
survey design was employed where a census of thirteen private universities in
Nairobi county formed the population. Primary data was collected from procurement
personnel by use of questionnaire framed on five point likert scale. Data was analyzed
and presented in form of pie charts, descriptive tables and histograms. On the extent of
e-procurement implementation, the findings indicated that, private universities in
Nairobi count yare practicing e-procurement at every stage of the procurement process
with 80 percent having e-procurement software installed. Correlation Coefficient was
calculated to determine the level of impact of e-procurement on the dimensions of
performance; efficiency and dematerialization, effectiveness and customer satisfaction
and transparency.The correlation coefficient was 0.87, 0.65 and 0.86 respectively
indicating that; e-procurement has a strong positive impact on each of the performance
dimension.E-procurement practices should be evaluated to ensure their limitations do
not hinder the organization'seffectivess, effeciency, customer satisfaction and cost
redution.Further study to be done on impact of e-procurement on supplier management
and procurement process transparency because the respondents were neutral on this
issue. The coefficient correlation was 0.65 indicating that e-procurement somehow
impacted on supplier management and procurement process transparency. Other studies
should also be carried out to identify the reasons why organisations are skeptical on the
use of purchase cards as a way of e-procurement because respondents recorded a mean
of 2.2 indicating that less that half of the universities use this mode of purchasing.
Citation
Master Of Business AdministrationPublisher
University of Nairobi