Factor influencing the implementation of e- procurement among firms listed in the Nairobi

Abstract

Business environment IS constantly changing making it imperative for organizations to continuously adapt their activities in order to succeed. In order to survive in a dynamic environment, organizations need strategies to focus on their customers and to deal with the emerging environmental challenges. E-procurement system contributes significantly to national productivity growth through the removal of non-value added activities in procurement process. Adoption of e- procurement in Kenya has been slow with practical difficulties in getting the systems operational.

The main objective of the study was to establish the factors influencing implementation of e­ procurement among firms listed on the Nairobi stock exchange. To undertake the study, a descriptive survey research design was used. The focus of the study was all the companies listed on the Nairobi Stock Exchange which was 46 firms as at June 2008 (Nairobi Stock Exchange, June2008). The elements of population are not many hence, a census was undertaken.

Primary data was collected using a structured questionnaire to enable the researcher to gather in­ depth information on phenomena under investigation. The data was analyzed by employing descriptive statistics such as percentages, frequencies, and tables. Statistical Package for Social Sciences (SPSS) was used to aid in the analysis. Computation of frequencies in tables, charts, and bar graphs was also used in data presentation. From the study, the researcher found that, technical skill is the major technological factor influencing implementation of e-procurement. On the same note, management skills and expertise is a resource factor influencing implementation of e-procurement significantly. Incorporated compares are therefore challenged to maximize on both the technical and managerial resources to ensure that e-procurement is implemented successfully within the shortest time possible.