EFFECTS OF ELECTRONIC PROCUREMENT ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF MAJOR SUPERMARKETS IN NAIROBI COUNTY
Munubi K. Z. - Masters of Business Management Student, Maasai Mara University, School of Business and Economics, Kenya
Kinanga R. - Senior Lecturer, Maasai Mara University, School of Business and Economics, Kenya
Ondiba K. P. - Lecturer, Maasai Mara University, School of Business and Economics, Kenya
ABSTRACT
The study focused on the effects of electronic procurement on organizational performance: A case study of major supermarkets in Nairobi County. The general objective of the study was: To determine the effects of e-procurement on organizational performance: A case study of major supermarkets in Nairobi County. The specific objectives of the study were: To determine the effects of e-sourcing on the performance of major supermarkets in Nairobi County; To establish the effects of e-tendering on the performance of major supermarkets in Nairobi County; To determine the effects of e-payment on the performance of major supermarkets in Nairobi County and finally to determine the effects of e-archiving/e-records on the performance of major supermarkets in Nairobi County. Nairobi County had a total population of 26 hypermarkets and supermarkets excluding the minimarkets. Supermarkets can be referred to as major in relation to their size and number of branches. A supermarket chain can be termed as major if it has ten or more branches (Cox et al 2000). The major supermarkets in Nairobi County are Naivas, Nakumatt, Tuskys and Uchumi. The research study was therefore undertaken on these four major supermarkets which have at least five or more branches operating in Nairobi County and other branches spread out in different parts of the country. These four major supermarkets have a wide capital base, big branches occupying large floor areas, stocking a wide variety of Fast Moving Consumer Goods (both locally and foreign manufactured) from competing manufacturers and employ electronic procurement and other information communication technologies in their operations. Two stage cluster sampling was used to randomly select a total of 124 respondents from a total population of 619 employees working in the major supermarkets in the departments of finance, marketing, procurement and administration. The sample selected was 20% of the total population. E-procurement is the use of information communication technologies to enhance the supermarkets procurement process and bring about online interaction between the supermarkets and her suppliers of inputs and other requirements. This helps in saving time, cutting costs, checking frauds, corruption and providing records to facilitate the carrying out of transaction trails to enhance transparency and accountability in her operations. This is bound to bring about increase in organizational performance in terms of: increase in customer base, branches, branch networking, more sales and profitability.
