E-Procurement Practices and Organizational Performance of Kiambu County Government, Kenya
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Date
2024-07
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Kenyatta University
Abstract
Businesses worldwide are increasingly utilizing e-procurement as a result of technology improvements. E-procurement is crucial to meeting organizational objectives. However, county governments face major hurdles in implementing e-procurement processes into their operations. Clearly, the benefits of establishing critical e-procurement processes are not visible in a regressive government environment. Companies that use e-procurement in their procurement operations often see cost savings, data exchange, and simplified procurement processes. This study sought to investigate the impact of e-procurement procedures on the performance of Kiambu County Government. The study's objectives were to determine the impact of e-auction, e-tendering, e-ordering, and e-invoicing on the performance of Kiambu County Government. The study is based on Auction Theory, Resource Based View Theory, and the Technology Acceptance Model. The study followed a descriptive survey research design. The study addressed 216 employees from Kiambu County Government's procurement and finance departments. A stratified random selection procedure was used to choose 65 individuals. The data was collected using questionnaires. A pilot research was undertaken with seven procurement department employees. The respondents were not involved in the actual data collecting. The pilot test findings assisted in determining the validity and reliability of the research instruments. The research acquired authorization letter from Kenyatta University Graduate School and research permit from National Commission for Science, Technology and Innovation. The collected data was analyzed using the Statistical Package for the Social Sciences. The evaluated data was presented using frequency tables, means, and standard deviations. Diagnostic tests were performed to assess the results' reliability, including multicollinearity, linearity, normalcy, and homoscedasticity. The study's findings demonstrated that e-auction enhances efficiency in the procurement process, saving time for both vendors and purchasers. E-bidding leads to a shorter tender invitation procedure and increased openness in the tendering process. E-ordering expedites order acquisition and delivery. E-invoicing lowers payment errors and improves accountability and transparency. The findings revealed that e-auction, e-tendering, e-ordering, and e-invoicing have a considerable impact on the Kiambu County Government's performance. The study concludes that e-auction, e-tendering, e-ordering, and e-invoicing considerably improved the performance of Kiambu County government. Governments save a lot of time and money by holding e-auctions, which also allow suppliers to grow into new markets. E-tendering greatly reduces expenses while improving the efficiency of public sector tendering. E-invoicing improves performance by making an organization's operations run more smoothly. The study recommends that county governments improve accounting, documenting, and reporting by implementing proper invoicing procedures. The automated procurement process should encompass requisitions, tenders, contract warding, and payment. Additionally, the county government should improve the delivery of public services by giving both the national and county governments timely, transparent, and accurate financial and accounting information. The county administration should use electronic ordering, especially for processing purchase orders electronically.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment for the Award of Degree in Master of Business Administration (Procurement Option) of Kenyatta University, July 2024