Effect Of E - Procurement On Supply Chain Performance Of County Governments In Kenya: Case Study Of Busia County Government

ABSTRACT

Suppliers in different categories have adopted electronic procurement for enhancing their respective positions in the market by automating a wide variety of process that relates to the supply chain. Globalization and advanced technology have led to the unprecedented increase in the popularity of e-procurement. Despite this unique development, however, many businesses still manually execute a wide variety of their activities, which has led to the flouting of several essential supply chain processes. The ultimate effect of this development is the increment in losses that organizations and governments incur. The purpose of this study is to determine the consequences that county governments in Kenya face once they embrace e-procurement. This study intends to use Busia County Government as a case study. Its focus is the impact of e-material management activities on the overall achievement of the supply chains of these administrative units. For the researcher to be able to achieve his goal, he anchored this study on Electronic Market Hypothesis, Dynamic Capability Theory, Value Chain theory, Resource Based View Theory and Contingency Theory of Management. Additionally, he relied on Correlational research design to conceptualize this research. Procurement staffs of the government were the target population. The researcher collected the data from all the 56 employees. The research instrument was valid once it was exposed to experts who suggest a few amendments that were incorporated into the content. Reliability was ensured using alpha where all variables combined had a reliability coefficient of 0.971. This research determined that the advanced tendering process considerably affected the achievement of supply chain (β1=0.971, p = 0.000). The findings moreover established that electronic ordering has a momentous effect on supply chain achievement of these units (β2=0.606, p = 0.000). Moreover, electronic materials management plays important role in the management if county governments. The impact on the supply chain achievement proves this assertion right (β2=0.603, p = 0.000). Lastly e-supplier management has a noteworthy effect on supply chain achievement (β2 = 0.546, p = 0.000).The study suggests that the individuals, who are in-charge request for proposals and contract monitoring, as well as goods receipt note. Additionally, the finding recommends that they need to enhance electronic system and ensure that the system is used to process all orders. Another important suggestion is that the management applies Bar codes. Through this method, they are able to enhance receipts and issues of stocks. For much better outcome, this study has also established that these units will be highly efficient if they design and maintain working Websites and electronic communication channels, including email. The research suggests this as the best way to guarantee supplier and buyer integration.