Electronic Procurement Practices and Performance of Logistics Firms in Nairobi City County,Kenya

Abstract

The general objective of this study was to examine the relationship between e-procurement practices and performance of logistic firms in Nairobi County. The study was guided by the following specific objectives: to ascertain how E-tendering affects performance of logistics firms in Nairobi County, to determine the effect of E-invoicing in the performance of logistics firms in Nairobi County, to what extent E-Payment affect performance of logistics firms in Nairobi County and finally to establish how E-sourcing affect performance of logistics firms in Nairobi County. The study used descriptive design because it enhanced systematic description that is as accurate, valid and reliable as possible regarding the responses. The study was limited to 8 selected logistic firms in Nairobi County. Being an academic study, the period to be covered was 6 months. This study utilized a sample size of 54 respondents. The use of 54 respondents in the study was justified as it was in line with the recommendations of Mugenda and Mugenda who indicated that a descriptive study should include at least 30% of the total population. Since the sample size of 54 represented 30% of the population it was deemed appropriate. The researcher used questionnaires and secondary data as the research instrument to gather the relevant information needed related to the study. The study involved use of professionals and experts to test the validity of questionnaire by trying to assess what concept the instrument is trying to measure and the accuracy of representation of the concept under research. The quantitative data was analyzed using descriptive statistics. In addition, the study used multiple regression analysis to analyze the data. Regarding E-tendering, the study established that E-tendering had a significant and positive effect on the performance of logistic firms in Nairobi County. The study also established that E-invoicing had a significant and positive effect on the performance of logistic firms in Nairobi County. The study further established that E-Payment had significant and a positive effect on the performance of logistic firms in Nairobi County. The study finally established that E-sourcing had significant and a positive effect on the performance of logistic firms in Nairobi County.