Effect of Electronic Procurement Practices on Procurement Performance of Counties in Kenya: A Case of Siaya County

Abstract

In today’s intense competitive business environment, keeping up with the newest technological breakthroughs is critical for firms seeking to achieve their goals. Since the introduction of electronic procurement in the mid-90s, businesses have adopted varied technologies to realize associated benefits, which include cost savings, faster processes, improved contract adherence, and increased productivity. Despite these benefits, significant barriers remain, preventing firms from fully leveraging the value proposition of electronic procurement. This study focused on electronic procurement practices and procurement performance of counties in Kenya: a case of Siaya County. The study specifically examined the effect of e-tendering, e-sourcing, e-invoicing, and e-payment on procurement performance in Siaya County. The study was anchored on the Unified Theory of Acceptance and Use of Technology and supported by Kurt Lewin's three-step change theory, and Resource Based View Theory. A descriptive research design was used to describe the status of the variables. The target population consisted of all finance, procurement, and distribution employees in Siaya County whose total number was 160. 114 respondents were drawn from this sampling frame using Yamane's formula. Data was collected using a structured questionnaire. The findings were evaluated using frequency and percentage tables. Mean and standard deviation were used to evaluate the various e-procurement techniques implemented by the county. Manipulation of data was done using SPSS (V.25). Furthermore, correlation analysis was used to assess whether the independent and dependent variables had a linear relationship. Univariate linear regression was used to predict the extent to which electronic procurement explains the procurement performance of Siaya County. The regression analysis revealed that electronic payment had the strongest positive effect on procurement performance (β4= 1.098, t= 16.848 and p=0.000). In contrast, electronic invoicing had the weakest positive effect on procurement performance in the Siaya County Government (β3= .425, t= 4.269 and p=0.000). The study thus concluded that electronic procurement aspects including electronic tendering, electronic sourcing, electronic invoicing, and electronic payment capability significantly explained procurement performance of the Siaya county government. The study recommended to the leadership of Siaya County government to enhance the adoption of electronic tendering capabilities, and enhance the adoption and use of electronic sourcing capabilities such as electronic perspective suppliers’ identification, and electronic communication on successful bids. Further, the top leadership of Siaya County should enhance the use of electronic procurement capabilities such as electronic backing up of copies of invoices sent and received, electronic creation and transmission of invoices to clients, and electronic receipt of invoices from suppliers. Finally, Siaya County Government leadership ought to improve on the adoption of electronic payment capabilities such as online reconciliation of payments and receipts and electronic receipt of payments from clients.