Electronic Procurement and Performance of Non-Governmental Organizations in Kenya. A Case of Pathfinder International Kenya

Abstract

Manual procurement in the organizations have proved to be very difficult to operate with because it has led to waste of time and resources, insecurity, loss of documents, inconveniences, fraud due to lack of transparency, poor customer and supplier’s relations, increased errors in the documents and lack of credibility among many others. Due to this, organizations have realized the importance of Electronic Procurement and found it very vital in achievement of organizations objectives. Electronic procurement involves more than online transactions. E-procurement delivers a very manageable and orderly method to provide a clear path in communicating with vendors during transactions. Despite their crucial role in improving people’s lives and alleviating poverty, most non-governmental organizations have been recording poor performance. The general objective of the study was to establish the relationship between electronic procurement and performance of organizations in non-governmental organizations in Kenya. The specific objectives for the study were to establish how e-sourcing, e-ordering, e-invoicing and e-payment relates to performance of Pathfinder International. This study was guided by four theories namely, Disruptive Innovation Theory, Diffusion of Innovation Theory, Technology Acceptance Model Theory and Theory of Planned Behavior. The study adopted descriptive research design. The target population for the study was 135 participants. Census survey was employed whereby the entire population of 135 procurement staff were required to participate. The response rate for this study was 103 participants. Both open ended and close ended questionnaires were used to collect primary data. The study collected data through drop and pick method. Validity of the questionnaire were tested using content validity whereas reliability was tested using Cronbach’s Alpha. Quantitative data was analyzed using both descriptive and inferential statistics using SPSS Version 24 while qualitative data was analyzed using content analysis. Descriptive statistics was presented in frequency distributions tables and percentages. Inferential statistics such as correlation and regression were applied to assess the relationship between the independent and dependent variables. All ethical considerations were observed especially confidentiality, anonymity, consent and avoidance of biasness. The study concluded that electronic procurement and performance of organizations was indeed related and it was recommended that all procurement systems be made mandatory and that the procurement teams be well trained on all systems used to ensure efficiency is achieved through use of e-procurement.