EFFECTS OF E-PROCUREMENT ON PROCUREMENT PERFORMANCE IN HOSPITALITY INDUSTRY IN KENYA: CASE OF SAROVA CHAIN OF HOTELS
Esther Wandia Mwangi - Masters of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Asumpta Kagiri - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The advent of the internet has definitely made a change in the modern way of procurement functions. The role of procurement has changed considerably due to advancement in information technologies and information systems. For any organization to be in the frontline in modern business, it has to adopt the rapid change in technology and methods of doing things. Studies that have been carried out on electronic procurement clearly indicate that electronic procurement is a key factor on modern competitive companies in terms of efficiency and effectiveness of supply chains. A number of researches have been done on the business process implications of adopting electronic procurement but none has focused on effect of e-procurement on procurement performance at Sarova Chain of Hotels. This study ought to fill the existing research gap by conducting a study to establish to establish the effect of e- procurement performance at Sarova Chain of Hotels. The study was guided by technology acceptance theory, Schumpeter theory, innovation diffusion theory and transaction cost theory. This research adopted a descriptive research design. The study population comprises of 112 members of staff in different managerial levels currently working in the procurement department at Sarova Chain of Hotels. Random sampling technique was used to select 68 respondents. The researcher administered a questionnaire to each member of the target population. Quantitative data collected was analyzed using SPSS (Version 20) and the results presented through percentages, means, standard deviations and frequencies. A multivariate regression model was applied to determine the relative importance of each of the four variables with respect to procurement performance. The study revealed that through e-tendering, compliance to procurement policy has improved, e-sourcing provides a means to better understand competition and creates competitive intelligence. It was clear that enterprise resource planning ensures that the products are on the shelf in just the right quantity. Electronic procurement has the potential to reduce the total cost of acquisition. Thus the study concludes that adoption of e-tendering, e-sourcing, enterprise resource planning, E-informing were positively related to procurement performance. The study recommends that Sarova Chain of Hotels should fully adopt E–procurement system, enterprise resource planning, E-informing systems and E-sourcing system as all were found to enhance procurement processes in the Hotel sector.
