ROLE OF ELECTRONIC PROCUREMENT ADOPTION ON PREFERENCE REGULATIONS IN STATE CORPORATIONS: A CASE OF KeNHA
Eric Wamae Maina - Master of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Noor Shalle Ismael - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The purpose of this study was to investigate on the role of electronic procurement adoption on preference regulations in States Corporations, having a narrow focus of KeNHA (Kenya national highway authority). The researcher intends to investigate the role of electronic procurement adoption on preference regulations in States Corporations through looking at the role of cost reduction, buyer supplier integration, electronic reverse auctioning and organizational policy on preference regulations in states corporations. The study was based on disruptive innovation theory, diffusion of innovation theory, transaction cost theory and institutional theory. Based on research methodology, the researcher used qualitative and quantitative research designs, where target population comprised of 100 selected procurement officers, firm suppliers, legal and compliance department and finance officers. Stratified random sampling technique was used to acquire the right sample of 50 individuals. Data collection was done using questionnaires, analysis of data was done using SPSS and data presentation was expected to be in terms of tables, frequency charts and also figures. Quantitative data was analysed using descriptive statistic and based on the results, respondents indicated that through electronic procurement, KeNHA has managed to cut costs such as reduced cost on operational purchasing activities, electronic contracting and disposal costs and also costs on electronic procurement activities. In the second objective of the study, it was found out that electronic procurement has played a huge role in buyer supplier integration as electronic market place has been taking place in KeNHA and other states corporations toward enhancing preference regulations. The researcher found out that electronic procurement has contributed to electronic reverse auctioning in KeNHA and states corporations as electronic order placing, and electronic selling and purchases have been enhanced hence contributing greatly to preference regulations in states corporation. Based on the results, it was clear that organizational policy has greatly contributed to preference regulations through electronic procurement as amendments of procurement rules has to be done to accommodate electronic procurement activities. Results also found out that in inferential statistics, relationship existed between dependent and independent variable, indicating that any small change in independent variable, dependent variable will be affected by a constant value of 3.315 and the resultant independent variable. The researcher concludes that electronic procurement in Kenyan States Corporation has not fully been implemented as majority of the respondents’ lucked awareness of its performance and also considering that 30% of the public procurement to disadvantaged groups has never been attained, in KeNHA and other resultant states corporation. The researcher recommended that the Government should consider establishing policies which ensure full implementation of electronic procurement in states corporations to ensure that the disadvantaged target of procurement is reached, also private and public sectors need to learn the benefits associated with electronic procurement such as cost cutting and buyer supplier integration and reverse auction. The researcher also recommended to future researcher that different variables need to be considered and that future research location should be rural or in county government to determine how several county corporations have appreciated applicability of electronic procurement on preference regulations.