E-tendering Adoption and Procurement Performance of Oil Marketing Firms in Kenya

Abstract

The objective of this study was to explore factors which influence adoption of electronic tendering on performance of procurement among oil marketing firms in Kenya and the relationship between e-tendering and procurement performance among oil marketing in Kenya. The lowest price in open market under given circumstances is the main aim of competitive tendering and better results are hence attained with more competition among tenderers. A need for cross disciplinary education can be incorporated to help in increase an uptake of innovative technologies and technological systems of construction processes such as electronic tendering and is strongly recommended that become learning organizations. Due to increased electronic integration of construction processes there has been need to acquire a new set of skills and device ways to deliver these skills. Studies need to be done to establish reasons why e-tendering has not been incorporated many companies in third world countries. The research question was: What are the factors which influence e-tendering among Oil marketing firms in Kenya? The objective of this study was to explore factors which influence adoption of electronic tendering and performance of procurement among Oil Marketing firms in Kenya. Explanatory study was used in carrying out the research study. The study population was 20 (twenty) leading firms in Kenya. A questionnaire was used in the collection of primary data. The data collected was then analyzed using quantitative analysis. The data were assigned numerical values. The mean was calculated from the scores obtained from a Likert scale. Simple means; standard deviation, regression and correlation analysis. A multivariate regression analysis was established if there existed association between e-tendering adoption and procurement performance. The findings show that most oil marketing firms in Kenya still apply the traditional tendering method to a large degree. The second objective of the study was to establish the challenges facing the adoption of e tendering among oil marketing firms in Kenya. Using Principal component analysis six main challenges facing e-tendering, potential benefits of e-tendering cannot be realized by oil marketing firms.