Effect of Information and Communication Technology on Procurement Performance in Energy Sector State Corporations in Kenya

Abstract

Nowadays, there is increasing emphasis on ICT utilization in procurement for enhancing transactional activities with the aim of gaining operational efficiency. With the use of ICT, these activities have been simplified and speeded up greatly. ICT has been embraced by various governments to improve the quality of public service, increase access to information by the public and energize more participation in civic affairs. The general objective of this study was to examine the effect of ICT on procurement performance in the energy sector state corporations in Kenya. The study intended to determine the effects of communication technology, application soft-wares, information technology, electronic procurement policy and electronic procurement technical support staff on procurement performance in the energy sector state corporations in Kenya. The study adopted an exploratory approach using descriptive survey design and correlational design. The target population comprised 360 procurement staff and 25 electronic procurement technical support staff from 9 Energy Sector state corporations in Kenya. The sample size consisted of 211 respondents who included procurement and electronic procurement technical support staff. Simple random sampling technique was used to select the procurement staff whereas census sampling technique was used to select the electronic procurement technical support staff. Questionnaire was the key instrument of data collection used. A pilot study was undertaken to pretest the questionnaires for reliability using cronbach alpha. The study generated both qualitative and quantitative data which were collected using likert scales. Qualitative data were analysed using content analysis while quantitative data was analysed with the help of Statistical Package for Social Sciences (SPSS) version 21. This helped in generating both descriptive and inferential statistics. Quantitative data were presented in tables, charts and graphs. Out of the 211 employees that were targeted in various energy sector state corporations, 189 responses were received as valid resulting in a response rate of 89.6%. Normality test was done for dependent variable in order to aid subsequent analysis. Factor analysis was also done to reduce the data to meaningful size. Correlation analysis was used to test the direction of relationship between the independent variables and dependent variable. Multiple regression was used to test whether communication technology, application software, information technology, electronic procurement policy and electronic technical support staff have any effect on procurement performance. The study findings indicated that communication technology, application softwares, information technology, electronic procurement policy and electronic procurement technical support staff contribute positively to procurement performance. It was therefore concluded that there is a positive significant relationship between ICT and procurement performance. The findings of the study indicate that ICT is a significant area that organisations should consider in their bid to improve procurement performance. The study recommends regular training of ICT technical support staff, alignment of electronic procurement policies with current procurement practices, implementation of Contract management software and spend analysis software.