Influence Of Electronic Procurement On Supply Chain Performance Of Firms In The Energy Sector In Kenya

Abstract

Digital procurement is the most prominent area where internet was used to curb the challenges which were being faced before ICT was implemented. However, despite the organizational benefits obtainable by the adoption of the electronic procurement,1the challenges and associated risks are widespread. The purpose of the study was to assess influence of electronic procurement on supply chain performance in energy firms in Kenya with an aim of making recommendations on proper use of electronic procurement on supply chain performance. The study was guided by the following objectives electronic data interchange, electronic material management, electronic tendering and Supply chain integration influence of electronic procurement on supply chain performance at kenya power company. The study was guided by the following theories value chain theory, capability dynamic theory, innovation diffusion theory and resource based view theory. To achieve this, the study reviewed both theoretical and empirical literature and propose the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions. This research study adopted descriptive research design approach. The targeted firms in the energy sector that were listed at Nairobi Securities Exchange, that is Kenya Power Ltd, Kengen Ltd, KenolKobil Ltd and Total Kenya Ltd where a total of 256 respondents from the procurement, finance, administration, Information technology, Human resource and Marketing departments were targeted. A sample size of 30% was adopted and hence 77 respondents were targeted. Data was gathered using structured questionnaire, then analyzed using inferential and descriptive statistics where it was analyzed by use of descriptive and inferential statistics through SPSS 24. The study findings indicated an increase in Electronic Data Interchange leads to a significant improvement in supply chain performance of the firms in the energy sector in Kenya. It was also established that an increase in Electronic Material Management leads to a significant improvement in supply chain performance of the firms in the energy sector in Kenya. The study findings also showed that an increase in Supply Chain Integration leads to a significant improvement in supply chain performance of the firms in the energy sector in Kenya. However, Electronic Tendering has no significant association with supply chain performance of firms in the energy sector in Kenya. It can therefore be recommended that the firms in the energy sector to continuously invest in enhancing Electronic Data Interchange, supply chain integration and Electronic Material Management so as to realize significant supply chain performance in the long run.