Effect of e-procurement on supply chain performance as perceived by Employees of Kenya medical Research Institute, Kenya

Abstract

Procurement function is considered the most significant in organizational performance as well as supply chain performance. Procurement involves different firms or a specific firm through procurement department, purchasing goods and services at the right place, right time, right quality and right price for user departments. The objective of the study was to establish effect of e-Procurement on supply chain performance of Kenya Medical Research Institute. The specific objectives of the study were to; establish influence of e-tendering, e-sourcing, e-invoicing and e-payment on supply chain performance of Kenya Medical Research Institute. The study was guided by four theories; Technological Acceptance theory, Resource Based theory, Innovation Diffusion theory and Transaction Cost theory. The study used explanatory research design. The target population comprised of 126 supply chain managers and 355 users of the e-procurement systems. Stratified random sampling was used to select a sample size of 281. The study used stratified, purposive and simple random sampling to select respondents. Data was collected using questionnaires and interview schedule. Descriptive and inferential statistics was used to analyze data and presented in form of tables. Linear regression was used to test hypotheses. The study findings depicted that there was a positive significant influence of e-tendering (β=0.595), e-ordering (β=0.240), e-sourcing (β =0.334). E-invoicing (β =0.321). E-payment (β=0.295 and p value<0.05) on Supply chain performance. The study concluded that -tendering, e sourcing, e-invoicing and e-payment had a significant influence on supply chain performance. The study recommends that Kenya medical research institute management should adopt and utilize e-tendering to streamline the process of procurement and reduce the costs involved. Findings of this study shall enable policy makers, government, regulatory bodies and other users to model policies and programs that significantly enhance e-procurement and sustainability of supply chain performance.