Eprocurement, Strategy Drivers And Performance At The National Treasury In Kenya

Abstract

The main objective of the study was to establish the effect of E-procurement on performance at the National treasury and to determine the intervening effect on strategy drivers on the relationship between E-procurement and performance at the national treasury. Most of the inefficiencies in government ministries are caused by use of manual system in the operation of the procurement function. Implementation of electronic procurement enhances performance of an organization. Electronic procurement helps to minimize the paper work and thus saving on the cost of production. It also brings together the suppliers and buyers together through a system. This therefore necessitates adoption of technology in the procurement system function. The study aimed at determining the intervening effect on strategy drivers on the relationship between E-procurement and performance at the National Treasury in Kenya. Resource based view theory, system theory and transactional cost philosophy made up the theories to inform the investigation. The research design that was adopted by the study was a case study. The preferred data in the study was primary. The interview data obtained was analyzed qualitatively since it is able to make general conclusions on how data categories are related. Content analysis was used to assess the answers, draw deductions and to develop commendations. The study found that e procurement greatly affects organizational performance. They further indicated that e procurement enhances efficiency in operation. The study also found that e procurement also reduces paper work and thus enhancing transparency. Results further showed that the national treasury had adopted the different forms of e procurement; e tendering, e ordering and e sourcing. The study also found that the national treasury had adopted the following strategic drivers; good leadership, organizational structure, good leadership, conflict management, user trainings. The conclusion from the study was that e procurement had a significant effect on organizational performance. In addition, e procurement enhances efficiency in operation and reduces paper work thus enhancing efficiency. The study also concluded that the national treasury of Kenya had adopted the different forms of e procurement; e tendering, e ordering and e sourcing. In addition, regular training in e procurement enhances the performance of the organization. The study also concluded that strategic drivers affect performance of organizations. Organizational structure, good leadership, conflict management, user trainings do enhance the organization performance. Government ministries seem to be risk averse and ought to take more xi active approach to embracing e-procurement technologies, such as e tendering, that have the prospective to streamline procurement processes and minimize procurement costs over the long term. The government ministries should employ strategic drivers such as organizational structure, good leadership since strategic drivers have a great impact on performance. In order to overcome the challenges met in the strategic management at the National Treasury the study recommends an analysis of the organization design and organization culture.