COST OF E-PROCUREMENT SYSTEM AND PERFORMANCE OF NAIROBI COUNTY: A CASE OF CITY HALL
Ruth Mokeira Nyangau - Master of Business Administration (Procurement Option), St. Paul’s University, Kenya
Mary Kibuine - Lecturer, Department of Business Administration and Management, St Paul’s University, Kenya
Robert Abayo Ouko - Lecturer, Department of Business Administration and Management, St Paul’s University, Kenya
ABSTRACT
Electronic procurement or e-procurement refers to the phenomenon where the procurement process is conducted over the internet. The main objective of adopting cost of e-procurement system is to improve efficiency and effectiveness of the process in the context of cost and time. While Kenya’s private sector has been more receptive in adopting e-procurement, the public sector has had quite the challenge in doing the same. This study examined how the independent variable (cost) affects e-procurement performance in Nairobi County, Kenya. The study found basis on the Technology Acceptance Model (TAM), the Accelerator Theory of Investment, the Systems Theory, and the McGregor’s XY theory. A descriptive research design was adopted with the target population being a census of the 240 professionals working in Nairobi County. The choice of a descriptive research design is based on its ability to conduct empirical review on available studies while venturing into new perspectives of the problem. The 240 professionals who composed the target population were from the Procurement, Finance, Human Resource, and Information Technology departments based at City Hall in Nairobi. The primary form of data collection instrument was questionnaires that were administered to the target population. Field and readability tests were conducted for reliability while test-retest method was used to ensure questionnaire reliability. Analysis was conducted using Statistical Package for Social Sciences (SPSS). Pearson Correlation was used to examine the relationship between independent and dependent variables of the study. Notably, the linear regression model was used to statistically quantify the relationship between the independent and dependent variables. The findings were interpreted and presented in the form of charts, graphs, and tables. Particularly, the study discovered that cost has a strong effect on e-procurement performance. Based on the findings, the study recommended increased budgetary allocation for employee training as well as hiring already of qualified staff, infrastructure maintenance, and the implementation of change management programs.
