Role of e-procurement strategy on the performance of state corporations in Kenya

Abstract

Since the internet arrived on the scene as a supply management tool in the mid-1990s enterprises have tried to gain the benefit e-procurement can deliver: cost reduction, process streamlining, improved contract compliance, increased spend under management, and more. State corporations play a major role in the development of the country through provision of public services and have become a strong entity in Kenya and very useful engines to promoting development. The overall objective of this study was to examine the role of e-procurement strategy on the performance of state Corporations in Kenya. A cross-sectional survey was used in this study. A descriptive statistics were used in this study aided by Statistical Package for Social Sciences(SPSS) version 21to compute percentages of respondents’ answers. Inferential statistics using multiple regression and correlation analysis were applied to examine the relationship between research variables. Tables were used to present the analysed results. The study findings revealed that customer service level strategy, procurement cost reduction strategy, inventory optimizations strategy, buyer/ supplier collaboration strategy and audits and compliance strategy significantly affect performance of state corporations. The study recommends that state corporation should have a good e-procurement software system as it would help them greatly reduce the time and effort required to complete purchasing transactions by eliminating traditional paper chain of requisitions, approvals, receiving and payment reconciliation.