Effect of the Adoption of Electronic Procurement Practices on Perfomance of Supermarkets in Kisumu...

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European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431 EFFECT OF THE ADOPTION OF ELECTRONIC PROCUREMENT PRACTICES ON PERFOMANCE OF SUPERMARKETS IN KISUMU CITY, KENYA Andolo Dan Ojijo, (MBA) Maseno University/ Kenya Abstract: Electronic procurement concept emerged in the mid- 1990’s and it has long been a central doctrine in the practice of procurement. It is basically a tool that enables procurement activities such as sourcing, ordering,commissioning, receipting and making payment. Procurement scholars have reaffirmed that firms that implement a total electronic procurement orientation are likely to be more successful. Despite this, some companies have failed to implement the electronic procurement concept because its adoption and implementation is costly. However, little has been documented on Kenya’s retail supermarkets with regard to the effect of its adoption on the performance consequences. Supermarkets play a significant role in Kenya’s economy. According to Kenya Economic Survey 2012, they generated employment to 12,000 Kenyans out of the 520,000 new jobs in the labour market. Moreover, there have been reports of supermarkets facing market challenges resulting to

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Electronic procurement adoption practices on performance of supermarkets.

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Page 1: Effect of the Adoption of Electronic Procurement Practices on Perfomance of Supermarkets in Kisumu City

European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

EFFECT OF THE ADOPTION OF ELECTRONIC PROCUREMENT PRACTICES ON PERFOMANCE OF SUPERMARKETS IN KISUMU

CITY, KENYA

Andolo Dan Ojijo, (MBA)Maseno University/ Kenya

Abstract: Electronic procurement concept emerged in the mid-1990’s and it has long been a central doctrine in the practice of procurement. It is basically a tool that enables procurement activities such as sourcing, ordering,commissioning, receipting and making payment. Procurement scholars have reaffirmed that firms that implement a total electronic procurement orientation are likely to be more successful. Despite this, some companies have failed to implement the electronic procurement concept because its adoption and implementation is costly. However, little has been documented on Kenya’s retail supermarkets with regard to the effect of its adoption on the performance consequences. Supermarkets play a significant role in Kenya’s economy. According to Kenya Economic Survey 2012, they generated employment to 12,000 Kenyans out of the 520,000 new jobs in the labour market. Moreover, there have been reports of supermarkets facing market challenges resulting to low returns and closure. In the year 2011 their performance declined to 7.3 compared to 8.0 in 2010 and this may be attributed to competitive pressures arising from poor adoption of electronic procurement practices. The purpose of this study was to assess the effect of the adoption of electronic procurement on the performance of supermarkets in Kisumu city. Specifically, the study was to establish the electronic procurement practices used by supermarkets in Kisumu. The study applied descriptive survey design. The target population was 280 employees out of which a sample of 164 was drawn and 93 responded. Primary and secondary data were used. The data was analyzed using descriptive statistics. The study revealed that e-information is the most commonly used practice and e-auctioning is the worse.

Key Words: (Procurement, Electronic, Performance, Supermarket)

Macintosh, 02.04.2014,
Where are the results of this study?DiscussionConclusionRecommendations
Macintosh, 04/02/14,
Use key words not in the title. All words in the title are key words already!
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Introduction:Electronic procurement Concept emerged in the mid-1990’s and it has long been a central doctrine in the practice of procurement.It is basically a tool that enables procurement activities such as sourcing, ordering, commissioning, receipting and making payment. Electronic procurement (E-procurement) is the application of Internet technology in material and service procurement. It involves the use of various forms of Information Technology (IT) to automate and streamline the procurement process, improving efficiency and transparency, thereby reducing the cost of operation within and between business parties (De Boer et al 2002). Procurement scholars have reaffirmed that firms that implement a total electronic procurement orientation are likely to be more successful.Electronic Procurement practices are strategies that may be followed when making company purchasing decisions. These practices may include e-tendering, e-ordering,e-information,e-auctioning and e-invoicing. One of the most widely discussed procurement best practices is the use of e-procurement. E-procurement is an electronic method of purchasing supplies and services. According to Croom and Brandon-Jones (2004), e-procurement refers to the use of Internet-based (integrated) information and communication technologies (ICTs) to carry out individual or all stages of the procurement process including search, sourcing, negotiation, ordering, receipt, and post-purchase review. According to the Chartered Institute of purchasing & Supply,e-Procurement is about using the Internet to operate the transactional aspects of requisitioning, authorizing, ordering, receipting and payment processes for the required services or products (CIPS, 2009).According to Davila, Gupta & Palmer, 2003 e-procurement is any ICT designed to facilitate the acquisition of goods by a commercial or a governmental organization over the Internet. E-Procurement has the potential to provide cost and time reductions when ordering from suppliers, and helps to achieve a well-integrated supply chain. Some of the benefits are the cost reduction in goods, services and order processing, better transparency to the suppliers and electronic commerce development (Pereira, Alturas, 2007). A successful e-Procurement system is required to have suppliers and buyers willing and able to trade electronically.

Main Text:The purpose of this study was to determine the effect of adoption of electronic procurement practices on performance of Supermarkets in Kisumu City, Kenya. Specifically, the study sought to establish the Electronic procurement practices used by supermarkets in Kisumu City.

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Review of Theoretical Literature

The concept of Electronic Procurement

Information and communication technologies are changing the way organizations do business, particularly the adoption of e-business and e-commerce. The scope of e-business includes information exchange, commercial transactions and knowledge sharing between organizations (Croom, 2005), whereas e-commerce focuses only on commercial transactions (Cullen and Webster, 2007). Some of the technologies associated with e-commerce include websites, e-mail, extranets, intranets and electronic data interchange (EDI) (Mclvor and Humphreys, 2004). E-procurement refers to all of the connective processes between companies and suppliers that are enabled by electronic communication networks (Meier and Stormer, 2009).Harink (2003) defines e-procurement as using internet technology for procurement process.Definitions of e-procurement vary across literature in the field. E-procurement has been defined as the use of information technologies to facilitate B2B purchase transactions for materials and services (Wu et al., 2007). Different forms of technology are appropriate for different procurement activities; six forms of e-procurement have been classified (de Boer et al., 2002), including e-ordering/e-Maintenance Repair Operate (MRO), web-based enterprise resource planning (ERP), e-sourcing, e-tendering,, e-reverse auctioning/e-auctioning and e-informing.E-Procurement provides the benefits in several ways. First, the ability to access online catalogs allowing buyers to view a wider spectrum of offerings and prices from several different companies, and through these catalogs, organizations can develop programs that will automatically order when certain criteria are met. Second, an electronic approval cycle negates the need to print several copies of orders or contracts and allows for a more rapid, orderly flow that can be set up even if key people are away. The ability to track where the procurement is in the process, for buyer and seller alike, allows for the instant ability to go right to the point of stoppage, rather than spend time looking for it. Third, the ability to pay electronically ensures prompt payment without all of the invoices and receiving documents that traditionally burdened the process. Finally, an automated interface allows the companies with other e-systems to synchronize data with procurement as a “check and balance” and gives managers the information they need (Mc.Kie, 2001:99-100). While these benefits center on the processes, e-Procurement enhances a key benefit that arises from the personnel who accomplish the procurement.

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Another innovation e-Procurement brings to the table is employee-centered purchasing. This eliminates the need for a purchasing professional to ensure all rules and regulations are being followed. In employee-centered purchasing the people who know what the organization needs can conveniently and effectively order the parts without worrying about breaking rules or policies. E-Procurement systems incorporate the rules and policies of the organization into the system and will not allow personnel to buy outside of the systems rulebook. While this could hinder the procurement process if a good rulebook is not developed, it allows for most purchasing situations an organization could face. In the end it should “prevent the purchasing department itself from becoming a procurement process bottleneck” (Mc.Kie, 2001:105).The ultimate objective of e-procurement systems is to provide electronic services (e-services) that facilitate procurement process. By automating processes and workflows associated with purchasing, the firm expects to increase the productivity of its purchasing agents, lower purchase prices of different types of goods and services, streamline the information flow, business processes, and workflows involved in purchasing, eliminate maverick buying (i.e., buying from unauthorized vendors), reduce order fulfillment and processing times, reduce the number of suppliers the firm is dealing with, streamline invoice reconciliation and dispute resolution, reduce the administrative processing cost per purchase order, integrate budgetary controls into the procurement process, minimize human errors in the buying and shipping processes, and monitoring and regulating buying behavior (Turban et al., 2005).Harink(2003) identifies e-procurement forms for automating different steps in procurement process. E-sourcing, e-tendering, e-reverse auctioning, e-contract management, e-ordering, and web-oriented ERP are the identified forms of e-procurement. Prior to order placement, the use of e-sourcing reduces the time taken to find suppliers of goods or services, increasing the economies of supplier search (Evans & Wurster,2001; Cox et al. 2002a, 2002b; de Boer et al. 2002; Narasimhan et al. 2003; Presutti,2003; Harink,2003; Subramaniam & Shaw, 2004; Croom & Brandon-Jones, 2005). In addition, e-tendering helps to simplify the tender process (de Boer et al. 2002). Ereverse auctions can significantly reduce processing costs through the reduction in cycle time (Emiliani, 2000; Smeltzer & Carr, 2001; Cox & Watson, 2004; Wagner & Schwab, 2004) and negotiation (Jap, 2002). Post purchase, there is an increase in the speed and accuracy of data collection (Croom, 2000). However, the vast majority of transaction savings accrue from improvements to the purchase process itself. These savings are realised through reduced work in process (Cox, 1999; Zsidisin & Ellram, 2001); increased automation

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of processes (Kalakota & Robinson, 1999; Croom, 2000; Deeter-Schemelz et al. 2001; Barnes et al. 2002); reduced paperwork and improved accuracy (Lancioni et al. 2000; Neef, 2001; de Boer et al. 2002); process re-design and elimination of tasks, reduced inventory, consolidated invoices and reduced transmission errors (Croom & Johnston, 2003). Most authors appear in agreement that e-procurement implementation results in improvements to order cycle time (Croom, 2000; Turban et al. 2000; Zsidisin & Ellram, 2001; Harink, 2003). Cycle time may be reduced as a result of faster product search, fewer input errors, automatic authorisation within pre-set limits, faster delivery, fewer problems with invoice consolidation, and quicker payment to suppliers (Lancioni et al. 2000). This in turn creates the potential for reducing inventory levels and thus minimising working capital (Martin & Hafer, 2002; Presutti, 2003). However, it is worth noting that savings figures in the literature are generally anecdotal and in some cases costs of implementation may outweigh the potential advantages of e-procurement Research by Gebauer et al. (1998) has described procurement practices (PPR) and how these positively affect procurement performance (PP) in terms of cost, time, satisfaction, quality, stock, and value. Masterman (1992) provide good background to some procurement work as traditional procurement route came under closer scrutiny other procurement routes developed and consequently means for selection were considered. In addition, he has defined various procurement routes if characteristics of procurement route can be identified and the impact of these characteristics upon performance can be measured, then and only then can the selection of specific procurement path serve a definite purpose.

Review of empirical literature.

Chang and Wong (2010), examined firm motivations for adopting e-procurement for their operations in the marketplace and measured their performance to assess its benefits. Trust was considered as a moderating variable between the relationship of e-procurement adoption and e-marketplace participation. A two-stage analysis, including both a qualitative and quantitative approach, was applied. Hypotheses were developed and a model constructed. A research questionnaire was developed and distributed followed by data analysis and testing. The results showed that firms that adopted e-procurement were more likely to participate in the e-marketplace and that the firm's performance was enhanced after such participation. Trust was shown to have a moderating effect upon firm willingness to adopt e-procurement when it was considering participation in the e-marketplace.Wendy van der Valk & Wynstra (2012).empirically tested a theory specifying distinct ideal interaction patterns for four business-to-business

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service types, which differ with regard to how they are used by the buying company. The ideal interaction patterns were conceptualized as configurations of five different interaction dimensions: the key objectives in the interaction, the critical capabilities on either side of the relationship, the type of functional involvement from the buying firm and the key issues in the buyer–seller dialogue. Using a combination of quantitative and qualitative data from 23 cases of service exchange at six buying organizations in Netherlands a test of whether similarity between the ideal interaction pattern and an actual, observed interaction pattern is a continuous necessary condition for successful ongoing service exchange or not was carried out. The findings suggested for each of the four service types that, in order for a service exchange to be successful, buying companies should design their interactions with their service providers to closely resemble the specified ideal pattern for that specific service type. A study by Kardaras et al. (2000) in Greecefound out that, a large number of organizations were using Internet to provide information about products and services such as prices, availability and new features. Another survey study by Poon et al. (1999) found that many firms use e-mail as a communication tool because it could enable asynchronous and multimedia communication, and it is more cost effective. In fact, most organizations surveyed by Poon et al. (1999) were using the Internet for communication.Mackay, Gemino, Igbaria and Reich (2001) in an empirical research in British Columbia found that the majority of the retail firms use websites to share information with suppliers as well as clients but only a handful of them have adopted advanced e-information such as online retailing and information sharing with their staff. This report is supported by a separate study by Haynes et al. (1998) where it was discovered that Internet usage by most of the companies is still relatively low. Besides, a survey by Mackay et al. (2001) also shows that online transactions such as e- ordering,e-sourcing and e-invoicing are preferred to be used by retail firms. From the above findings, the most commonly used Internet applications were found to be e-mail and websites. On the other hand, there was evidence that most businesses especially the SMEs are not keen to use Internet to access their suppliers, contrary to the opinions of many researchers who believe that Internet could offer a cost-effective procurement process.

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Research Methodology

Research Design

The study utilized the descriptive survey design.

Study Area

The study area was in Kenya and conducted in Kisumu City Kenya’s third largest city. The city lies in Nyanza province found in western Kenya on the western shores of Lake Victoria.

Target Population

The population of the study comprised 280 employees of four major retail supermarkets in Kisumu who were directly involved in the procurement process.

Sample size

A sample size of 164 respondents was used. This was arrived at as follows.n=N/[1+N(e)²] (Yamane, 1967).n=280/[1+280(0.05)²]=164where:n = Sample sizeN = Populatione2 = Level of precision (at 95% confidence level)

Data Type and Sources

The study used both primary and secondary data. Primary data was obtained through a semi- structured questionnaire and secondary data obtained through document review.

Reliability Test for Data collection instrument

A pilot study was carried out on a small number of respondents to detect any weaknesses in the design and instrumentation. Since the study involved self- administered type of data collection instruments, questionnaires were revised to reduce cases of ambiguity.

Questionnaires were then tested for content validity to establish quality of instrument. These procedures involved pilot testing on the same population which was not part of the sample. There was no variation from the expected

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result and the instrument was considered to be valid. Checks were also performed to ensure that sample responding employees were representative of the broader population. First, the size characteristics of the sample were compared to the overall population. The distribution in terms of the categories (Top branch management, Middle level management and lower cadre employees) who were directly involved in procurement were given similar weight.The reliability analysis was conducted on all the multi-items scales to check the internal consistency of the scales and constructs. In this view, the study adopted a cut off 0.60 Cronbach’s coefficient which was recommended by Bagozzi and Yi (1988) as a good indicator of reliability. Reliability test for e-information ,e-ordering,e-tendering,esourcing,e-invoicing and e-auctioning were (Alpha values of 0.896, 0.80, 0.720,0.713,0.642 and 0.602) respectively. Although some alpha value was relatively moderate, they are nonetheless acceptable since alpha values are above the threshold of 0.60 (Bagozzi & Yi, 1988). The reliability results have been presented in table 3.7.3 below.

Table 1: Analysis of Internal Consistency.

Model No. of Items

Cronbach’s alpha

E-information 5 0.896

E-ordering 2 0.801

E-tendering 2 0.720

E-sourcingEinvoicingE-auctioning

445

0.7130.6420.602

Source: Field Survey, 2013

Validity Test for Data collection instrument

Validity of a questionnaire refers to the extent to which it measures what it claims to measure (Mugenda, 2003). It is the degree to which results obtained from the analysis of the data usually represents the phenomena under study. The research instruments were exposed to experts review for validity checks.

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Data Analysis and Presentation

Qualitative data was analyzed using descriptive statistics such as mean, standard deviation.Correlation analysis was also used which helped to obtain a measure of the degree of association of two variables. This approach was deemed appropriate since descriptive methods tend to be stronger in validity but weak in reliability whereas inferential statistics tend to be stronger in reliability but weak in Validity (Kibwage, 2002 & Odondo, 2007). Moreover, Babbie (1986) indicated that the use of both methods aids the researcher in gaining higher degree of reliability and validity.During and after data collection, care was taken to check the questionnaires that were filled for consistency and completeness. They were then coded and data cleaned to suit SPSS Computer package that was used in the analysis. The data was eventually presented using tables, graphs and charts. All data were analyzed at a significance level of 95% with the help of computer software package of SPSS Software of version 20.0RESULTS AND DISCUSSION Demographic Characteristics of the SampleThe study targeted 164 sample respondents but only 93 questionnaires were filled and successfully returned. A majority of the respondents were aged between 26-35 years which was 49.5% of the total respondents. The least responses came from those who were in the age bracket of 45-55 years. The questionnaires received were completed to a high standard and were found useable as they were complete and consistent. This information was summarised in the figure 4.1.1 below:

Table 2: Analysis of age bracket of respondents

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Age bracket

Frequency

Percent

Valid Percent

Cumulative Percent

18-25 years

17 18.3 18.3 18.3

26-35 years

46 49.5 49.5 67.7

36-45 years

29 31.2 31.2 98.9

45-55 years

1 1.1 1.1 100.0

Total 93 100.0 100.0

Source: Survey data, 2013

Table 3: Analysis of gender

Gender

Frequency

Percent

Valid Perce

nt

Cumulative

Percent

Male 54 58.1 58.1 58.1

Female

39 41.9 41.9 100.0

Total 93 100.0 100.0

Source: Survey data, 2013The figure 4.1.2 above showed that 58.1% of the respondents were males while 41.9% were females.

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Table 4: Analysis of respondents’ level of education

Level of Education

Frequency

Percent

Valid Percent

Cumulative Percent

'O' Level

39 41.9 41.9 41.9

Diploma

46 49.5 49.5 91.4

Degree 8 8.6 8.6 100.0

Total 93 100.0 100.0

Source: Survey data, 2013From the figure above, 46 out of 93 employees in the four major supermarkets in Kisumu city are diploma holders. This makes 49.5% of the respondent population. “O” level certificate holders were 39 which is 41.9% and finally the degree holders were the least (8) which translated to 8.6% of the total respondent population. This shows that the management of supermarkets in Kisumu city have preference for ‘O’ level certificate holders as compared to diploma and degree holders.

Table 5: Analysis of respondents’ years of service

Years of service

Frequency

Percent

Valid Percent

Cumulative Percent

1-5 years 29 31.2 31.2 31.2

6-10 years 51 54.8 54.8 86.0

11-15 years 12 12.9 12.9 98.9

16-20 years 1 1.1 1.1 100.0

Total 93 100.0 100.0

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Source: Survey data, 2013

The table above indicates that 54.8% of the respondents have served in the supermarkets for six to ten years while 1.1% of them have worked for 16-20 years,12.9% said that they have worked for 11-15 years while 31.2% revealed that they have worked for a duration of between 1-5 years. This trend indicated that the supermarkets management in Kisumu tend to lay off their workers who have served for more than twenty years.

Electronic Procurement Practices used by Supermarkets in Kisumu

Before the researcher sought to establish the e-procurement practices adopted by supermarkets in Kisumu to address objective 1, a question was asked whether all the four major supermarkets have adopted electronic procurement in their procurement function and gathered the data as indicated in the table below.

Table 6: Analysis of electronic procurement adoption

Adopted

Frequency

Percent

Valid Perce

nt

Cumulative

Percent

Yes 57 61.3 61.3 61.3

No 36 38.7 38.7 100.0

Total 93 100.0 100.0

Source: Survey data, 2013

It emerged from the survey that only 61.3% of the respondents accepted that their supermarkets had adopted electronic procurement practices while 38.7% of them said they had not adopted e-procurement practices. The survey further revealed that the 36 respondents (38.7%) who said that their supermarkets had not adopted e-procurement were employees of two out of four supermarkets where the survey was carried out. These results were further demonstrated by Table 4.2.2 below:

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Table 7: Descriptive Statistics of E- procurement adoption

Adopted

Frequency

Percent

Yes 57 61.3

No 36 38.7

Total 93 100.0

Source: Survey data, 2013.

When respondents from the supermarkets that had adopted e-procurement were then asked about the procurement practices that their supermarkets engage in, they identified e-tendering, e-sourcing, e-invoicing, e-auctioning, e-ordering and e- information. Their opinion was further sought on the frequency of use of these listed procurement practices in their firms, they responded as shown in the table below.

Table 8: Analysis of frequency of use of E-Tendering

E-TenderingFrequen

cyPercen

tValid

PercentCumulative Percent

Never 36 38.7 38.7 38.7

Occasionally 12 12.9 12.9 51.6

Almost every time

28 30.1 30.1 81.7

Every time 17 18.3 18.3 100.0

Total 93 100.0 100.0

Source: survey data, 2013

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38.7% of the respondents revealed that those supermarkets which they work in had not adopted the use of e-tendering in the procurement function of their supermarkets. 18.3% of them agreed that they actively use e-tendering. The rest said that they either use it occasionally (12.9%) or they use it almost every time (30.1%) as shown in the table 4.2.3 above.

The data collected with respect to the frequency of use of e- sourcing as a procurement practice showed that 38.7% of the respondents said that they have never used it in their daily procurement function, 16.1% said that they use it occasionally and 30.1% said they use it almost every time while 15.1% agreed that they use it every time as shown in the table 4.2.4 below.

Table 9: Analysis of frequency of use of E-sourcing

E-Sourcing Frequency PercentValid

PercentCumulative Percent

Never 36 38.7 38.7 38.7

Occasionally 15 16.1 16.1 54.8

Almost every time

28 30.1 30.1 84.9

Every time 14 15.1 15.1 100.0

Total 93 100.0 100.0

Source: survey data, 2013

The survey data revealed that of the 93 respondents who filled in the questionnaire,36 of them accounting for 38.7% said that the supermarkets they work in have never adopted the use of e-invoicing while 32 of them accounting for 34.4% said that they use it almost every time. The rest (26.9%) used e- invoicing occasionally. This is shown in table 4.2.5.

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Table 10: Analysis of frequency of use of E-invoicing

E-Invoicing Frequency PercentValid

PercentCumulative

Percent

Never 36 38.7 38.7 38.7

Occasionally 25 26.9 26.9 65.6

Almost every time

32 34.4 34.4 100.0

Total 93 100.0 100.0

Source: Survey data, 2013

When the respondents were asked about their views on the frequency of use of e-auctioning in the retail supermarkets where they work, it emerged a majority of them(63.4%) said this practice has never been adopted. It also emerged that even those that have adopted it do not use it every time but rather use it either occasionally (35.5%) or almost every time (1.1%) depicting that this procurement practice is uncommon with the supermarkets in Kisumu as indicated in the table 4.2.6 .

Table 11: Analysis of frequency of use of E- auctioning

E-Auctioning Frequency PercentValid

PercentCumulative

Percent

Never 59 63.4 63.4 63.4

Occasionally 33 35.5 35.5 98.9

Almost every time

1 1.1 1.1 100.0

Total 93 100.0 100.0

Source: survey data, 2013

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Table 12: Analysis of frequency of use of E- ordering

E-Ordering Frequency PercentValid

PercentCumulative

Percent

Never 36 38.7 38.7 38.7

Almost every time

30 32.3 32.3 71.0

Every time 27 29.0 29.0 100.0

Total 93 100.0 100.0

Source: survey data, 2013

In order to establish the above, respondents were asked their frequency of use with respect to e-ordering .The responses were that 38.7% of them said they never use it while 29.0% translating to 27 respondents said they use it every time.Finally when they were asked on how often they use e-information in the procurement function in their supermarkets, they responded and their responses were summarised as shown in the table 4.2.8 below:

Table 13: Analysis of the frequency of use of E-information

E-Information Frequency PercentValid

PercentCumulative

Percent

Never 36 38.7 38.7 38.7

Almost every time

25 26.9 26.9 65.6

Every time 32 34.4 34.4 100.0

Total 93 100.0 100.0

Source: survey data, 2013

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Summary statistics of E-Procurement Practices used by Supermarkets

When a summary analysis was done on the above electronic procurement practices by comparing their means and standard deviations, it clearly emerged that e- information is the most commonly used practice by supermarkets in Kisumu with a mean of 2.599 and standard deviation of 1.31379 followed by E-ordering with a mean of 2.5161 and standard deviation of 1.27359 then e-tendering ,e-Sourcing, e-invoicing and finally e-auctioning in that order with means of 2.2796, 2.2151,1.9570 and 1.3763 respectively. These results are consistent with previous studies for example Chang and Wong, 2010, who identified E-sourcing, E-ordering as major E-procurement practices in the manufacturing organizations. It also concurs with the findings of the study by Kardaras et al. (2000) in Greece which found out that, a large number of organizations were using Internet to provide information about products and services such as prices, availability and new features. A survey by Mackay et al. (2001) also shows that online transactions such as e-ordering,and e-tendering are preferred to be used by retail firms which are consistent with the findings of this study.These are summarised in the table 4.3.1 below:

Table 14: Summary table of means and standard deviations of e-procurement

Descriptive Statistics

N MinimumMaximu

m MeanStd.

Deviation

E-Information 93 1.00 4.00 2.5699 1.31379

E-Ordering 93 1.00 4.00 2.5161 1.27359

E-Tendering 93 1.00 4.00 2.2796 1.16438

E-Sourcing 93 1.00 4.00 2.2151 1.12143

E-Invoicing 93 1.00 3.00 1.9570 .85864

E-Auctioning 93 1.00 3.00 1.3763 .50892

Source: survey data, 2013

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European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Summary of the Findings

The objective was to establish the Electronic procurement practices used by supermarkets in Kisumu City. Descriptive statistics were computed to establish the most prevalent electronic procurement practice. The study revealed that e- information is the most commonly used practice by supermarkets in Kisumu with a mean of 2.599 and standard deviation of 1.31379 followed by E-ordering with a mean of 2.5161 and standard deviation of 1.27359 then e-tendering ,e-Sourcing, e-invoicing and finally e-auctioning in that order with means of 2.2796, 2.2151,1.9570 and 1.3763 respectively.

Conclusion of the Study

Finally, that e-information is the most preferred procurement practice by supermarkets in Kisumu followed by e-ordering then e-sourcing in that order and the least preferred one was e-invoicing with means of 2.6559, 2.8602, 2.9462, and 3.1075 respectively.

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