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Chegugu N. Rasto - Masters of Science in Procurement and Contract Management, Jomo Kenyatta University of Science and Technology, Kenya

Dr. Yusuf kibet - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


Integrating e-procurement in hospitals’ supply chain units has made it possible to conduct procurement practices effectively as compared to the manual methods of recording procurement and general conducting of procurement functions. However, the performance of hospitals in delivering high quality of services has reduced due to lack of an e-procurement system in some hospitals. Hospitals with e-procurement systems also face challenges which include poor quality of goods and services, lack of timely delivery of supplies and delayed payments of suppliers and leaking funds where systems fail, forcing management to use manual practices. The study adopted the use of diffusion of innovation theory institutional theory. The purpose of the study was to investigate the effect of e-procurement practices on organizational performance. The research objectives were: to find out the effects of e-tendering, e-invoicing and e-payment on organizational performance of hospitals within the county government of Uasin Gishu County. The study employed a descriptive survey of 5 hospitals. The sample size was 367 respondents. Questionnaires were the main types of data collection tools. The data collected was then coded and entered into the Statistical Package for Social Sciences (SPSS) Version 22. The study used both quantitative and qualitative data. Data was then presented in tables of frequencies and percentages. On e-tendering, the found that there is increased competitiveness in the tendering bid for the hospital; On e-invoicing, the study found that the adoption of e-invoice is able to indicate charges from purchasers to suppliers; Concerning e-payment, the study found that e-payment makes it cheap to promptly pay suppliers on supply delivery due to fewer charges incurred upon sending money through e-banking systems. The study recommends that hospitals should use a joint policy in the establishment of similar systems of selecting and issuing tenders as a standard procedure to ensure high levels of performance. All hospitals should automate the practice of invoicing so as to promote transparency and record management since it will be easier to track records or identify payments to be made to suppliers. All payments should be carried out using e-payment as this will provide a safe and cheaper means of transactions. 

Full Length Research (PDF Format)