Abstract
The purpose of study is to investigate the influence of e-procurement on the performance of state corporations in Kenya. Descriptive research design is adopted with the use of questionnaire as tool for primary data collected. The data yielded a response rate of 95.2 percent from a sample size of 62 used, which were drawn mainly from senior procurement managers of Kenya Rural Roads Authority (KeRRA). The data collected was statistically analysed to test content validity and reliability. In addition, a simple regression model was used conducted to test relationship between e-procurement and the performance of state corporations in Kenya. From the findings it was found out that e-procurement has transformed all routine purchasing transactions within KeRRA. However, it was established that e-procurement does not reduce the costs of acquiring materials and freeing up KeRRA resources. It was also noted that e-procurement positively increases the performance of state corporations.
Highlights
Nowadays, the strategic importance of the procurement function has been emphasized in the in the organizations (Kim, et al, 2015)
E-procurement improves the quality of information being shared between buyers and suppliers and improves decision making that contributes to overall effectiveness of organization (Tai et al, 2010)
Study finding revealed that the majority of the respondents with were not sure if e-procurement leads to better supply performance measurement
Summary
The strategic importance of the procurement function has been emphasized in the in the organizations (Kim, et al, 2015). For example in Jamaica the total procurement expenditures in the financial year 2015 was accounted to 30% of her GDP (Dawar & Oh, 2017). Because of these huge expenditures, strategic procurement has become synonymous as a way of accounting the best way use of the public resource to get value for money. In Kenya, public procurement is estimated to be about 45% of her GDP and procurement should not be regarded as a clerical function which involves only buying goods and service, but it should be observed as a strategic way of spending organizational resources to achieve maximum benefits in order to get value for money (Nollet & Beaulieu, 2005). International Journal of Management Science and Business Administration, vol 7, issue 6, pp. 45-51 September 2021
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