Factors Influencing Implementation of E-procurement in Supermarkets in Nairobi, Kenya

Abstract

Technology has changed the way supermarkets perform their operations; this has led to the introduction of new products and services that are aimed at lowering transaction costs and reaching a larger number of customers E-procurement provides the potential of increasing efficiency of payments system and expanding access to formal financial services by those who presently lack it. This study explored on the factors influencing e-procurement implementation in supermarkets in Nairobi Kenya. Thus it assessed the extent of adoption of E-procurement in supermarkets in Kenya, the factors influecing E-procurement adoption in supermarkets in Kenya and the relationship between the identified factors and level of E- procurement implementation in supermarkets in Kenya. This study was informed by the Technology Acceptance Model theory, Theory of Reasoned Action and Theory of Planned Behavior. The premise of Technology Acceptance Model is that people behavioral intention to accept and actually use a certain technology is determined by perceived usefulness and perceived ease of use. The Reasoned Action determines the consciously behavior of people and the Planned theory limits the behavior over which people have incomplete volitional control. Empirical literature reviewed shows that e-procurement has proved advantageous in organizations across the globe. Due to the small number of supermarkets in Nairobi, a census survey was done. The survey targeted 53 supermarkets drawn from Nairobi. Data was collected from the respondents using a structured questionnaire. This study found that there was a moderate extent of e-procurement implementation among the supermarkets in Nairobi. The four factors that influenced e-procurement were organizational factors, Readiness factors, Environmental factors and Technological factors. All of these factors have statistically significant relationships with e-procurement implementation. An examination of the joint relationship confirmed these findings and established that these four variables jointly account for 67.1% of the variability in procurement implementation. It was recommended supermarkets should scale down on traditional procurement activities if the benefits are to be realized. Also the government and other stakeholders need to work on incentives to encourage on technology use on running businesses. Other organizations should also be encouraged to adopt the same in order to provide faster and efficient services to their customers. It was such an uphill task for the researcher to convince the respondents to participate in the study since supermarkets are known to work under very strict confidentiality. E-procurement largely relies on the ERP system as the primary integration tool. Information technology is very dynamic and keeps on changing hence he need to replicate this study in line with major trends that may influence the performance of supermarkets in Kenya.