Electronic Procurement and Performance of Non-Governmental Organizations in Kenya. Empirical Evidence from Pathfinder International, Kenya

Abstract

This study explored how electronic procurement and performance of organizations is related. Electronic Procurement is very vital in achievement of organizations objectives. Electronic procurement involves more than online transactions. E-procurement delivers a very manageable and orderly method to provide a clear path in communicating with vendors during transactions. Despite their crucial role in improving people’s lives and alleviating poverty, most non-governmental organizations have been recording poor performance. The general objective of the study was to establish the relationship of electronic procurement and performance of organizations in non-governmental organizations in Kenya. The specific objectives for the study were to establish how e-sourcing, e-ordering, e-invoicing and e-payment relates to performance of an organization. This study was guided by four theories namely, Disruptive Innovation Theory, Diffusion of Innovation Theory, Technology Acceptance Model Theory and Theory of Planned Behavior. The study adopted descriptive research design. The target population for the study was 135 participants. Census survey was employed whereby the entire population of 135 procurement staff were required to participate. Both open ended and close ended questionnaires were used to collect primary data. The study collected data through drop and pick method. Validity of the questionnaire were tested using content validity whereas reliability was tested using Cronbach’s Alpha. Quantitative data was analyzed using both descriptive and inferential statistics using SPSS Version 24 while qualitative data was analyzed using content analysis. Descriptive statistics was presented in frequency distributions tables and percentages. Inferential statistics such as correlation and regression were applied to assess the relationship between the independent and dependent variables. All ethical considerations were observed especially confidentiality, anonymity, consent and avoidance of biasness. The study revealed that there was a strong significant correlation between e-sourcing and performance, a medium significant correlation between e-ordering and performance, a strong significant correlation between e-invoicing and performance and a strong significant correlation between e-payment and performance. The study concluded that electronic procurement and performance of organizations was indeed related and it was recommended that all procurement systems be made mandatory and that the procurement teams be well trained on all systems used to ensure efficiency is achieved through use of e-procurement. The researcher suggested that further studies be conducted.