Adoption of E-Procurement and Financial Performance of Ministry of Education, Science and Technology, Kenya
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Date
2018
Authors
Samoei, Abraham Kiprop
Ndede, Fredrick
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
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 multibusinesses 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 etendering, e-sourcing, e-ordering and einforming 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, Esourcing had a significant effect on the
financial performance in the Ministry of
Education, Science and Technology
(r=0.611, p-value=0.016). Further, eordering had a significant effect on
financial performance in the Ministry of
Education, Science and Technology
(r=0.578, p-value-0.021). Also, einforming had a significant effect with
financial performance in the Ministry of
Education, Science and Technology
(r=0.852, p-value=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 eordering 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 article published in International Academic Journal of Economics and Finance
Keywords
e-procurement, financial performance, ministry of education, science and technology, Kenya
Citation
Adoption of e-procurement and financial performance of ministry of education, science and technology, Kenya. International Academic Journal of Economics and Finance, 3(2), 385-409