Adoption of E-Procurement and Financial Performance of Ministry of Education, Science and Technology, Kenya
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Date
2018-11
Authors
Samoei, Abraham Kiprop
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The core and critical challenge mostly experienced by MOEST include application of
effective supply chain management procedures and practices as well as poor
information and communication technology integration among others. MOEST is
operating in emerging markets that have multi-businesses linked through supply chain
management practices cross-subsidization and are therefore generally viewed as
having a complex supply chain management system. The concept of finance
considerably contributes to the performance of public institutions. In the current
dynamic business environment, organizations require reliable and fast information so
as to improve their decision making regarding adapting in an effort to improve
organizational performance. The general objective of this study was to determine how
e-procurement adoption affects the financial performance of Ministry of Education,
Science and Technology, Kenya. The specific objectives were to find out the effect of
e-tendering, e-sourcing, e-ordering and e-informing on financial performance of
Ministry of Education, Science and Technology, Kenya. Descriptive research design
was used. The population of the study was employees in the Ministry of Education,
Science and Technology. The study used census method, implying that all the
individuals in the target population were used. The study’s sample size was 40 staff
working in information technology, accounts, procurement and finance departments.
Primary data was collected from respondents via questionnaires. Descriptive statistics
included percentages, frequencies, mean and standard deviation. Inferential statistics
made use of multiple regression analysis. Statistical analysis of the data gathered
revealed that e-tendering, e-sourcing, e-ordering and e-informing have a statistically
significant effect on financial performance. The study found that e-tendering has a
significant effect on the financial performance in the Ministry of Education, Science
and Technology (r=0.788, p-value=0.006). In addition, E-sourcing had a significant
effect on the financial performance in the Ministry of Education, Science and
Technology (r=0.611, p-value=0.016). Further, e-ordering had a significant effect on
financial performance in the Ministry of Education, Science and Technology
(r=0.578, p-value-0.021). Also, e-informing had a significant effect with financial
performance in the Ministry of Education, Science and Technology (r=0.852, pvalue=
0.000). The study recommends that MOEST should ensure that procurement
policies and regulations are adhered to so as to be ethical in the tendering process.
MOEST should enhance their e-sourcing activities so as to gain control over their
tender processes and an audit path for compliance purpose and to support
collaboration and allow various stakeholders to easily work together. MOEST should
practice e-ordering in order to improve employee productivity, receive accurate
orders, create a better experience for customers. Since e-informing has a positive
influence on financial performance, the study recommends that it is important for
MOEST to obtain the information of the suppliers on their previous clients as well as
their experiences. It is also important to consult references for product/service quality,
electronically, so as to improve the financial performance of MOEST.
Description
A Research Project Submitted to the School Of Business in
Partial Fulfillment of the Requirements for the Award of
Degree in Masters of Business Administration (Finance) of
Kenyatta University