Influence Of E-Procurement On Strategic Sourcing In The Judiciary Of Kenya

ABSTRACT

The use of e-procurement is expected to enhance inter-organizational coordination and result in significant economic benefits. Many organizations that have implemented the software have proved to be beneficial. Even though the overall benefits of web-based systems are established, there is a need to understand the conditions that lead to different levels of benefits among different organizations, and even among different business units within the same organization. The government of Kenya recently introduced an E-procurement system (IFMIS) to help in faster processes and to facilitate fairness and equality in public procurement. The study therefore sought to analyze the influence of the E- procurement system on strategic sourcing in government institutions a case of the Kenyan Judiciary. The specific objectives was to determine the effect of e-tendering on strategic sourcing in the Judiciary of Kenya, to determine the relationship between communication and strategic sourcing, to assess the effect of electronic order processing on strategic sourcing and to establish the contribution of electronic documentation on strategic sourcing. The research was based on the theory of technical assimilation state and the institutional theory. The study utilized descriptive research design. The study targeted a population of 106 Judiciary procurement department employees. The sample size consisted of only 19 officers based at the Judiciary’s headquarters and who use the e-procurement system. The research was carried out on the headquarters officers using the census method as the sample size is small. Validity was established through construct validity while the instruments reliability was tested using the internal consistency methods in this case the Cronbach’s Alpha. The data was collected using questionnaires which were administered to the sample population. Descriptive analysis was used to analyze the collected data. At the end of the research, the findings should help the Judiciary of Kenya to understand the influence that E-procurement has on strategic sourcing and enable the organization to identify the key areas of the using the internet to perform the procurement function, the benefits and the areas of improvement. The study concluded that the emergence of the new Information and Communication Technologies (ICTs) has also offered promising opportunities as regards the efficiency, transparency and opening-up of public procurement. Technology advances such as the Internet and on-line proposal/bid processes have created competitive environments that may not previously have existed, but have caused current suppliers to be more responsive to an organization’s financial objectives. The study recommended that for e-procurement to improve sourcing, mangers must believe in the benefits of the technology, opt for a comprehensive approach, define new relationships with vendors, train and support suppliers, and openly communicate with employees