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ADOPTION OF E-PROCUREMENT AND FINANCIAL PERFORMANCE OF MINISTRY OF EDUCATION, SCIENCE AND TECHNOLOGY, KENYA

Abraham Kiprop Samoei - Masters of Business Administration (Finance), Kenyatta University, Kenya

Dr. Fredrick Ndede - Department of Accounting and Finance, School of Business, Kenyatta University, Kenya


ABSTRACT

The core and critical challenge mostly experienced by MOEST include application of effective supply chain management procedures and practices as well as poor information and communication technology integration among others. MOEST is operating in emerging markets that have multi-businesses linked through supply chain management practices cross-subsidization and are therefore generally viewed as having a complex supply chain management system. The concept of finance considerably contributes to the performance of public institutions. In the current dynamic business environment, organizations require reliable and fast information so as to improve their decision making regarding adapting in an effort to improve organizational performance. The general objective of this study was to determine how e-procurement adoption affects the financial performance of Ministry of Education, Science and Technology, Kenya. The specific objectives were to find out the effect of e-tendering, e-sourcing, e-ordering and e-informing on financial performance of Ministry of Education, Science and Technology, Kenya. Descriptive research design was used. The population of the study was employees in the Ministry of Education, Science and Technology. The study used census method, implying that all the individuals in the target population were used. The study’s sample size was 40 staff working in information technology, accounts, procurement and finance departments. Primary data was collected from respondents via questionnaires. Descriptive statistics included percentages, frequencies, mean and standard deviation. Inferential statistics made use of multiple regression analysis. Statistical analysis of the data gathered revealed that e-tendering, e-sourcing, e-ordering and e-informing have a statistically significant effect on financial performance. The study found that e-tendering has a significant effect on the financial performance in the Ministry of Education, Science and Technology (r=0.788, p-value=0.006). In addition, E-sourcing had a significant effect on the financial performance in the Ministry of Education, Science and Technology (r=0.611, p-value=0.016). Further, e-ordering had a significant effect on financial performance in the Ministry of Education, Science and Technology (r=0.578, p-value-0.021). Also, e-informing had a significant effect with financial performance in the Ministry of Education, Science and Technology (r=0.852, p-value=0.000). The study recommends that MOEST should ensure that procurement policies and regulations are adhered to so as to be ethical in the tendering process. MOEST should enhance their e-sourcing activities so as to gain control over their tender processes and an audit path for compliance purpose and to support collaboration and allow various stakeholders to easily work together. MOEST should practice e-ordering in order to improve employee productivity, receive accurate orders, create a better experience for customers. Since e-informing has a positive influence on financial performance, the study recommends that it is important for MOEST to obtain the information of the suppliers on their previous clients as well as their experiences. It is also important to consult references for product/service quality, electronically, so as to improve the financial performance of MOEST.


Full Length Research (PDF Format)