FACTORS AFFECTING IMPLEMENTATION OF E-PROCUREMENT …
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FACTORS AFFECTING IMPLEMENTATION OF E-PROCUREMENT SYSTEMS IN KENYA: A CASE STUDY OF THE NATIONAL YOUTH SERVICE FEIZA ABDULLAHI SHARIF A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF MANAGEMENT AND LEADERSHIP IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE IN BACHELOR OF PROCUREMENT AND SUPPLY CHAIN MANAGEMENT OF THE MANAGEMENT UNIVERSITY OF AFRICA. JANUARY, 2019
Transcript of FACTORS AFFECTING IMPLEMENTATION OF E-PROCUREMENT …
FACTORS AFFECTING IMPLEMENTATION OF E-PROCUREMENT SYSTEMS IN
KENYA: A CASE STUDY OF THE NATIONAL YOUTH SERVICE
FEIZA ABDULLAHI SHARIF
A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF MANAGEMENT AND
LEADERSHIP IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
AWARD OF DEGREE IN BACHELOR OF PROCUREMENT AND SUPPLY CHAIN
MANAGEMENT OF THE MANAGEMENT UNIVERSITY OF AFRICA.
JANUARY, 2019
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DECLARATION
This project is my original work and has and has not been presented for a degree in any other
university.
Signature …………………………. Date ………………………
Feiza Abdullah Sharif
ODL-BML/9/00453/2/2016
This project has been submitted for examination with my approval as the university supervisor.
Signature ……………………………. Date ……………………………
Mr. Samuel Thiong’o Mungai
The Management University of Africa
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DEDICATION
This project is dedicated to Abdirashid Hassan Shariff for his continued support and help with
the necessary materials needed to finish this project. I would also like to dedicate this Project to
all my classmates at Management University of Africa especially Monica Kosgei for correcting
me where I went wrong.
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ACKNOWLEDGEMENT
I wish to extend my sincere gratitude first to The Almighty God for His grace, favor and mercy
without him i wouldn‟t have gotten this far.
I am also genuinely grateful to my supervisor who has given me the support and various tools
needed in order for me to accomplish my project.
I wish to acknowledge my parents who gave me their support by providing me with ample time
and finances that I used in travelling while piloting my research.
I also want to appreciate The Management University of Africa for allowing me to reach this far
in my education which will greatly impacted my future.
My gratitude also goes to The National Youth Service for accepting to coordinate with me
during my field work research which helped me gather deeper insight on the case study.
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ABSTRACT
This is a research project which sought to find out the factors affecting implementation of e-
procurement systems in Kenya focusing on the National Youth Service .There are some factors
which influence the e-procurement systems such as: Integrity, performance of the staff,
bureaucracy and accountability. All these factors contribute to the success or failure of the
procurement process and also performance of the organization as a whole .The objectives of the
study were;to determine the influence of integrity on the e- procurement systems in the National
Youth Service, to find out the impact of accountability in the e-procurement systems in the
National Youth Service, to find out how the performance of the procurement staff in the National
Youth Service influences the e-procurement systems and to determine the impact of bureaucracy
on the e-procurement systems. The target population was the NYS employees who were 595
from which a sample size of 59 respondents was obtained .The respondents were chosen because
they are actively involved in the institutions daily operations. The sampling technique in use is
stratified random sampling which enabled the researcher to control the sample size. The sample
size was 10 percent of the total number of employees from each job group. The instrument used
was a questionnaire. The questions were open ended and enclosed. Data was collected and
analyzed through tables, pie charts and bar graphs. The findings indicated that that lack of
integrity affects reliability of implementation of e-procurement process. It was also clear from
the conclusion that trustworthy among the implementing officers play a major role in success or
failure of the process. It was concluded that time taken to implement the e-procurement process
is important to be considered before starting the process to ensure effective and meaningful time
utilized. It was also concluded that managerial commitment facilitates informed decision making
in the implementation of e-procurement. The study recommended that Organizations
implementing e-procurement should ensure that integrity is upheld at all levels of
implementation so as to have a reliable implementation process for success of the initiative.
Communication in the process of implementation of e-procurement should be effective since
poor communication affects the process to a great extent. The cost of consultancy on e-
procurement implementation should be well considered and given priority to ensure only the
very necessary cost is utilized to avoid inconveniences emerging from such costs. The
organization engaging in the implementation of e-procurement should ensure that the staff
involved in the process are competent in the field for effective delivery of the initiative.In the
process of e-procurement implementation, management should be committed in the process since
there will be need for informed decision making instances which can only be possible with the
management being fully committed in the process. On suggestions for further studies, there is
need to study on the effects of communication on the implementation process of e-procurement
so as to identify the best ways communication can be utilized for the successful process. The
impacts and role of staff training and competence should be studies to assist in projecting the
effectiveness of training in the implementation process and the expected outcome.
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TABLE OF CONTENT
DECLARATION............................................................................................................................ i
DEDICATION............................................................................................................................... ii
ACKNOWLEDGEMENT ........................................................................................................... iii
ABSTRACT .................................................................................................................................. iv
LIST OF TABLES ...................................................................................................................... vii
LIST OF FIGURES ................................................................................................................... viii
LIST OF ABBREVIATIONS ..................................................................................................... ix
CHAPTER ONE ........................................................................................................................... 1
INTRODUCTION OF THE STUDY .......................................................................................... 1
1.0 Introduction ........................................................................................................................... 1
1.1 Background of the Study ....................................................................................................... 1
1.2 Statement of the problem ...................................................................................................... 4
1.3 Objectives of the Study ........................................................................................................ 5
1.4 Research questions ................................................................................................................ 5
1.5 Justification or significance of the study ............................................................................... 6
1.6 Scope of the study ................................................................................................................. 6
CHAPTER TWO .......................................................................................................................... 8
LITERATURE REVIEW ............................................................................................................ 8
2.0 Introduction ........................................................................................................................... 8
2.1 Theoretical of Literature Review .......................................................................................... 8
2.2 Empirical Literature Review ............................................................................................... 10
2.3 Summary and Research gaps............................................................................................... 17
2.4 Conceptual Framework ....................................................................................................... 18
2.5 Operationalization of variables ........................................................................................... 19
2.6 Chapter Summary ................................................................................................................ 19
CHAPTER THREE .................................................................................................................... 20
RESEARCH DESIGN AND METHODOLOGY .................................................................... 20
3.0 Introduction ......................................................................................................................... 20
3.1 Research Design .................................................................................................................. 20
3.3 Sample and Sampling Techniques ...................................................................................... 21
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3.4 Data Collection Instruments ................................................................................................ 22
3.5 Pilot study .......................................................................................................................... 22
3.6 Data Collection Methods and Procedure ............................................................................. 23
3.7 Data analysis and presentation ............................................................................................ 23
3.8 Ethical considerations ......................................................................................................... 24
3.9Chapter Summary ................................................................................................................. 24
CHAPTER FOUR ....................................................................................................................... 25
RESEARCH FINDINGS AND DISCUSSION ......................................................................... 25
4.0 Introduction ......................................................................................................................... 25
4.1 Presentation of research findings ........................................................................................ 25
4.2 Limitation of the study ........................................................................................................ 38
4.3 Chapter Summary ................................................................................................................ 38
CHAPTER FIVE ........................................................................................................................ 39
SUMMARY, CONCLUSION AND RECOMMENDATION ................................................. 39
5.0 Introduction ......................................................................................................................... 39
5.1 Summary of research findings............................................................................................. 39
5.2 Conclusions ......................................................................................................................... 40
5.3 Recommendations ............................................................................................................... 41
5.3.3 Staff training ..................................................................................................................... 42
5.4 Suggestions for further studies ............................................................................................ 42
REFERENCES ............................................................................................................................ 43
APPENDIXES ............................................................................................................................. 46
APPENDIX I: LETTER TO RESPONDENTS ....................................................................... 46
APPENDIX II: QUESTIONNAIRE ......................................................................................... 47
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LIST OF TABLES
Table 3. 1: Target Population ...................................................................................................................... 21
Table 3. 2: Sample Size .............................................................................................................................. 21
Table 4. 1: Response rate ............................................................................................................................ 25
Table 4. 2: Gender of the respondents ........................................................................................................ 26
Table 4. 3: Age of the respondents ............................................................................................................. 27
Table 4. 4: Years of service ........................................................................................................................ 28
Table 4. 5: Job group of the respondents .................................................................................................... 29
Table 4. 6: Integrity on implementation of e-procurement process ............................................................ 30
Table 4. 7: Trustworthy on implementation of e-procurement ................................................................... 31
Table 4. 8: Poor communication ................................................................................................................. 32
Table 4. 9: Poor communication ................................................................................................................. 33
Table 4. 10: Time taken for implementation ............................................................................................... 33
Table 4. 11: Staff competence..................................................................................................................... 35
Table 4. 12: Staff training ........................................................................................................................... 35
Table 4. 13: Informed decision making ...................................................................................................... 36
Table 4. 14: Strict bureaucratic operations ................................................................................................. 37
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LIST OF FIGURES
Figure 2. 1: Conceptual Framework ........................................................................................................... 18
Figure 4. 1: Response rate ........................................................................................................................... 25
Figure 4. 2: Gender of the respondents ....................................................................................................... 26
Figure 4. 3: Age of the respondents ............................................................................................................ 27
Figure 4. 4: Years of service ...................................................................................................................... 28
Figure 4. 5: Job group of the respondents ................................................................................................... 29
Figure 4. 6: Integrity on implementation of e-procurement process ........................................................... 30
Figure 4. 7: Trustworthy on implementation of e-procurement .................................................................. 31
Figure 4. 8: Poor communication ................................................................................................................ 32
Figure 4. 9: Consultancy cost ...................................................................................................................... 33
Figure 4. 10: Time taken for implementation ............................................................................................. 34
Figure 4. 11: Staff competence .................................................................................................................. 35
Figure 4. 12: Staff training .......................................................................................................................... 36
Figure 4. 13: Informed decision making ..................................................................................................... 37
Figure 4. 14: Strict bureaucratic operations ................................................................................................ 38
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LIST OF ABBREVIATIONS
BPO Business Process Off-shoring
CEO Chief Executive Officer
GoK Government of Kenya
I.C.T. Information Communication Technology
IFMIS Integrated Financial Management System
I T Information Technology
NYS National Youth Service
PFMR Public Financial Reform Management
PPDA Public Procurement and Disposal Process
PPOA Public Procurement Oversight Authority
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OPERATIONAL DEFINITION OF TERMS
Bureaucracy It is a large group of people who are involved in running of a government
but who are also not elected (Boateng, 2003).
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 (Rasheed, 2004).
Cost of implementation
This is the cost used in processing of implanting e-procurement operations
in an organization. This cost can be time commitment, licensing costs,
consultant costs etc (Ratanya, 2013).
Integrity This is to enhance and protect the standing of the profession by being
ethical and having integrity in all business relationships. This promotes the
eradication of unethical business practices such as infringing human
rights, fraud and corruption (Kari, 2010).
Managerial commitment
This implies the direct participation by the highest level management (top
management) in all specific and critically important aspects such as
bidding, quality, assessment, security, etc. or programs of an organisation
(Kippis, 2009).
Staff training This is training to improve the performance or knowledge of
the employees or workforce on effective implementation of e-procurement
(Dane, 2010).
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CHAPTER ONE
INTRODUCTION OF THE STUDY
1.0 Introduction
The following chapter introduces us to the area of study .Through this chapter we get to
understand why the research is being conducted where it‟s being conducted, the scope it intends
to cover and lastly the importance of this research.
1.1 Background of the Study
According to Mugenda (2009) procurement is the process of acquiring property or services.
Although it is regarded as a complex issue it strives to achieve a lot simultaneously coupled by
the regulatory policies that are involved. Nelson (2011), the majority of organizational
expenditure comprises of purchasing. To reduce the sum of money spent on the procuring
process internet technologies are used and E procurement has developed into being the main
agent of providing modern technology both to the government and other enterprises. A few years
ago Kenya‟s procurement process was not up to standard but due to recent changes in the
industry they have also had to come up with some changes. One of the major changes that has
occurred is the use of the e-procurement systems
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 (Rasheed, 2004). It is a
tool intended to advance the purchasing procedure, transparency and efficiency to aid companies
in capturing savings. The purpose of this study is to establish the factors affecting E-procurement
systems in Kenya. Regardless of the great achievements, E procurement technology
implementation is still at its early stages. The challenge according to Ward and Peppard (2013)
indicate that 60% of information technology (IT) application in procurement initiatives and
projects do not deliver the expected benefits.
Over the last few years, the internet has evolved from being a scientific network only, to a
platform that is enabling a new generation of business (Jeyaraj, Rottman &Laicity, 2006). The
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internet is changing the way business is done in every industry. The World Wide Web has
become a source of information, goods and services. E-procurement has emerged as one of the
most discussed topic in material procurement. Without doubt, it will dramatically change the
way purchasing is done in the near future (Rankin, Chen & Christian, 2010). Governments of
both developed and developing countries have embraced ICT to improve the quality of public
service, increase public access to information and to energize more participation in civic affairs.
As a result, most countries have recognized public participation in government tendering process
by enhancing access to opportunities available in the government authorities such as
procurement activity.
Due to ICT advancement, governments across the world have adopted e-procurement as a way to
ease access to the information. E-procurement is the application of internet technology in works,
material and service procurement. E-Procurement systems also allow more efficient integration
of supply chains and provide better organization and tracking of transaction records for easier
data acquisition (Ogot, 2009). According to Bialy (2008) E-Procurement is an online system by
which companies can be connected directly to suppliers for the purpose of buying products and
services at the lowest cost possible. E- Procurement essentially replaces its offline version, called
tendering. The advantages and disadvantages of E-Procurement mostly parallel the universal
benefits and disadvantages of the internet. According to Bialy (2008) E-Procurement is done
with a software application that includes features for supplier management and complex
auctions. The new generation of e- procurement is currently on demand or software as a service.
The E-procurement value chain comprises indent management, E-tendering, E-auctioning,
vendor management, catalogue management and contract management. Indent management is
the workflow involved in the preparation of tenders. This part of value chain is optional, with
each procuring department defining its indenting process. As concerns works procurement,
administrative approvals and technical sanctions are obtained in electronic format. On the other
hand, in goods procurement, indent generation activity is done online (Peter, 2012).
Kabaj (2008) contends that an efficient public procurement system is vital to the advancement of
African countries economies and is a concrete expression of their national commitment to
making the best possible use of public resources. Equally, Kakwezi and Nyeko (2010) argues
that the procurement departments of public entities in Uganda are faced with the problem of not
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having enough information about the procurement procedure, its inputs, outputs, resource
consumption and results, and are therefore unable to determine their efficiency and effectiveness.
This implies that such a problem requires establishment of clear procurement guidelines,
procedures and performance standards. Performance standards when adopted can provide the
decision-makers in the procurement department with unbiased and objective information
regarding the performance of the procurement function. In Uganda, procurement and disposal
planning are central to proper procurement management. Public Procurement and Disposal of
Public Assets (PPDA) Regulation 96(1) provides that a user department shall prepare a multi-
annual, rolling work plan for procurement based on the approved budget, and which is submitted
to the procurement and disposal unit to facilitate orderly execution of annual procurement plans.
In Kenya, the government has recognized the adoption of ICT in service delivery to the public
and citizen in general. This has gained momentum with the current Government administration.
Existing literature reveals that a number of organizations in Kenya have successfully adopted the
use of e-procurement technology. Gitahi (2011) cited the example of Nation Media Group which
through their digital platform commonly known as N-Soko has enabled their clients to purchase
products online. There is however emerging evidence of the slow uptake of the technology
despite the benefits that e-procurement offers (Segal and Taylor, 2011). In the public sector,
several models have been tried by different public entities to implement e-procurement. These
are seller centric, buyer centric, e-marketplaces or third-party managed models. The Public
Financial Reform Management (PFMR) Strategy Paper 2001-2006 recommended automation as
well as integration of key government functions such as the human resources payroll,
accounting, procurement and budgeting citing transparency, better financial management and
easier reporting as some of the benefits (GoK, 2011). According to the E-government Strategy
Paper 2004 e-procurement was one of the medium term objectives which were supposed to be
implemented by June 2007, but the implementation process was observed to be very slow (GoK,
2014). The National Treasury, is the Ministry in Government which is spearheading the public
financial management reforms. Within the ministry, there is a department called the Integrated
Financial Management Information System (IFMIS) Department which has the mandate of
designing, spearheading and managing the Integrated Financial Management Information System
re-engineering process in all central government ministries, county governments and all
government agencies.
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Vision 2030 has placed a very high premium on the use of ICT in improving and
internationalizing professional services offered in Kenya. In this regard, business process off-
shoring (BPO) is proposed to be promoted with the aim of making Kenya one of the top BPO
destinations in Africa. The Government has, thus, undertaken to offer world class ICT
infrastructure developed by top international IT suppliers to ensure Kenyan professionals
compete effectively in the international outsourcing market (National Economic and Social
Council of Kenya 2013).
1.1.1 Profile of National Youth Service
National Youth Service (NYS) came into being through an act of parliament, thereby having its
first recruits in the years 1964. William Griffins run the NYS until 1988 and during this time the
service trained, through theory and practice, thousands of youths who today forms the backbone
of the country‟s economy in various technical industries. As for those who proceeded to
universities after being trained by the NYS in those days, today display admirable discipline in
how they lead their lives and most occupy some of the highest offices in various fields. The
program was re-launched in 2013 to connect and encourage youths in seeking vocation. This
time, NYS has advanced allowing more youth to be recruited (United Nations Development
Programme, 2010).
The NYS uses “The Integrated Financial Management System” (IFMIS) to conduct the e-
procurement processes .The institution was formed in order to help the youth to acquire various
skills. In the last five years it has had issues in the tendering and procurement services as a
whole, which intern led to it incurring huge losses due to lack of integrity, accountability,
bureaucracy and poor performance of staff. These four aspects are the key variables to this study
that guided the study towards reaching its intended goal. Lack of one of the following variables
would lead to the failure in the e procurement system hence the all variables should be tackled
accordingly for the benefit of proper running of the e procurement system.
1.2 Statement of the problem
The National Youth Service procurement process which is under the devolution ministry has
been shrouded in secrecy, inefficiency, corruption and undercutting which has resulted in
wastage of a lot of resources which greatly affects the economy of the country. The main
question is despite the fact that e procurement has been embraced by the government because of
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it numerous benefits its implementation has been very slow. The public sector is to support the
growth of e-procurement across the information economy where by, there should be extensive
conversations on what generates the critical success factors of e procurement. This study
therefore sought to establish the factors that affect the implementation of e-procurement systems
in Kenya focusing on the National Youth Service
1.3 Objectives of the Study
1.3.1 General Objectives
The purpose of the study was to establish the factors that affect the implementation of e-
procurement systems in Kenya focusing on The National Youth Service.
1.3.1 Specific objectives
i. To determine the influence of integrity on the implementation of e-procurement systems
in Kenya.
ii. To find out the impact of cost on the implementation of e-procurement systems in Kenya.
iii. To establish how staff training influences the implementation of e-procurement systems
in Kenya.
iv. To investigate the impact of managerial commitment on the implementation of e-
procurement systems in Kenya.
1.4 Research questions
i. How does integrity influence the implementation of e- procurement systems in Kenya?
ii. What are the effects of cost on the implementation of e procurement systems in Kenya?
iii. Does the staff training influence the implementation of e- procurement systems in
Kenya?
iv. How does managerial commitment influence the implementation of e- procurement
systems in Kenya?
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1.5 Justification or significance of the study
1.5.1 The Management of National Youth Service
The study would be important to the management of NYS in establishing the factors that affects
the implementation of e-procurement systems considering that the institution has been earmarked
by procurement challenges that has led to massive loss of funds. This study would therefore
inform the organization on the shortcomings in procurement department that would be important
in identifying the right strategies to implement e-procurement systems that would control any
further loopholes for siphoning of public funds.
1.5.2 The Government
This study would benefit the government especially the cabinet secretaries who are key decision
makers in their ministries .The recommendations of this study would form part of the action plan
that can be implemented to ensure that due diligence is followed in the e-procurement systems in
all government ministries and the entire public sector.
1.5.3 Future researchers
Other researchers would be able to accumulate knowledge from this study by reviewing of
literature to identify gaps in the study that would form the basis of their studies. The study would
also be of importance to future researchers by presenting the current status on the factors
affecting implementation of e-procurement which would be key moving forward in this area of
study.
1.6 Scope of the study
The study was done to find out factors that affect the implementation of e- procurement systems
in Kenya focusing on The National Youth Service. Therefore the study was limited to the NYS
employees in Ruaraka at the NYS headquarters. The target population was 595 employees but
the sample population was 59 NYS employees. This study was carried out from August, 2018 to
January, 2019.
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1.7 Chapter Summary
The chapter explored the factors affecting the implementation of e-procurement systems in
Kenya by presenting the background of the study giving the global context, but most importantly
the Kenya scenario. Establishing the problem statement and then moving to the objectives of the
study being integrity, cost, staff training and managerial commitment. The objectives forms the
research questions that the study will seek to answer. The chapter also presented the significance,
scope of the study.
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter will focus on explaining the various factors that affect the implementation of the e-
procurement process in the National Youth Service by reviewing the theoretical and empirical
literature reviews .This chapter will also focus on the various variables such integrity,
accountability, performance and bureaucracy . This chapter also focuses on the conceptual
framework.
2.1 Theoretical of Literature Review
This research was based on various theories which include disruptive innovation theory,
technology acceptance theory and innovation diffusion theory which are discussed below;
2.1.1 Disruptive Innovative Theory
Barahona and Elizondo (2012) discussed the theory of disruptive innovation. This theory points
out that e-procurement is an innovation. As such it requires continual improvement. Because of
such improvements, it disrupts the normal procurement operations and processes. The theory of
disruptive innovation is characterized by: small and costly client base and non-attractiveness at
the initial stages of implementation, some level of acceptance as the system is implemented, new
competition as innovation continues and continuous quality improvement to improve adaptability
to user and stakeholders needs. Disruptive innovations require critical resources, processes and
values. Critical resources include resources supporting the normal business activities such as;
People, technologies, product designs, brands, customer and supplier relationships, relationship
management with its clients and suppliers and marketing activities. Critical processes include
decision making protocols and coordination patterns that supports operations of an existing
business operations. In addition, organizational cultural values, belief system and assumptions
are also critical Barahona& Elizondo, (2012). The theory of disruptive innovation recognizes the
fact that public organizations and systems are less flexible. Therefore, the adoption of e-
procurement strategies requires a strategic and proactive approach so as to build the system
within the existing structures rather than adoption of completely new systems. Hence ,it is
relevant that before a new system is introduced the existing structures should be well analyzed in
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order to establish the best way of incorporating the new system. Without analyzing the existing
structures the new system is bound to fail.
2.1.2 Technology Acceptance Theory
Technology Acceptance Theory Technology acceptance model was introduced by Devis (1986).
According to this theory, emerging technologies cannot improve organizational effectiveness and
performance if the change has not been accepted by the users (Davis, 1986). The theory of
technology acceptance is one of the most popular theories in understanding adoption of computer
technologies. Adoption of any innovation or especially information technology based requires
investment in computer based tools to support decision making, planning communication.
However, these systems may be risky. It is therefore very critical that the systems are specified
on organizational preference and logic. It is also necessary to understand that people may resist
technological changes. There must be an effort to understand why people resist changes and the
possible ways through which such issues can be resolved. Appropriate organizational culture
must be inculcated; the change must be adopted in an incremental way accompanied by
communication. Everyone involved must be informed on their roles and empowered to perform
the respective roles (Kamel, 2014). Theory of technology is based on two assumptions;
perceived usefulness of the system such us; improved performance, enhanced productivity,
effectiveness and efficiency in operations. The perceived ease of use of the new systems such as
ease to learn, ease to use, ease to control and ease to remember. This theory brings an
understanding that acceptance and use of new technology is a function of the users‟ feelings
about the system and its perceived benefits. Hence, the users need to be educated on the benefits
and functionalities of the new technology being incorporated. This means that the users feeling
are placed into consideration in regards to bring in a new system. It might be positive or negative
therefore before any technology is introduced the acceptance of the user must be placed into
consideration.
2.1.3 Innovation diffusion Theory
Innovation diffusion theory was proposed by Rogers (1962). The theory presents that innovation
is a process aimed to improve economic development. According to innovation diffusion theory,
innovation is defined as an idea perceived as new by individuals. OECD (1997) cited by
Andreanne and Swaminathan (2007) defined innovation as all the scientific, technological,
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organizational, financial, and commercial activities necessary to create, implement, and market
new or improved products or processes Innovation theory brings on board important elements‟.
The first element is innovation that puts attention on the ability to come up with more efficient
and better ways of doing things. This theory categorize adopters of innovation into five
categories; innovators, individuals who want to be the first to try the innovation, early adopters,
people who represent opinion leaders, early Majority individuals who need to see evidence that
the innovation works before they can adopt it, Late Majority, skeptical individuals who only
adopts an innovation after it has been tried by the majority and Laggards, individuals who are
very skeptical of change and are the hardest group to involve in the innovation process.
According to innovation theory, rate of adoption of innovative strategies can be looked at in
terms of; relative advantage given to the organization, compatibility, complexity, trial-ability of
the new strategies and observability to the stakeholders within the social system. The second
factor is communication that lays information and creating and sharing information relating to
innovative initiatives in the organization. The third element is time that considers the duration
involved in the innovation-decision process. The last element is the social context of the new
systems (Rogers, 1997). Diffusion of innovation strategies requires evolution and reinvention of
products and people so that they are able to perform better (Les Robinson, 2009). This theory
helps build on the study and enable the researcher to understand the expected relationship
between the variables. It also helps the research to come up with more efficient and better ways
of doing things in regards to the innovation theory.
2.2 Empirical Literature Review
This section reviews the theories that the study was anchored as it explored the constructs that
are identified for the study.
2.2.1 Integrity and the implementation of e- procurement systems
In public procurement, the principle of integrity is two-fold. There is the integrity of the
procurement process, and also the integrity of public procurement practitioners (the principal
guardians of the process) (Kari, 2010) Integrity translates to reliability. Bidders and all other
stakeholders need to have assurance that they can rely on any information disseminated by the
procurement entity, formally or informally. The integrity of the procurement process assures
confidence in the public procurement process. When solicitation documents are issued by the
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procurement entity, the information provided should be reliable and free of uncertainty or
predisposition. When reviewing solicitation documents, prospective bidders should be able to
determine their interest and qualifications for the assignment (Croom, 2015). They also must be
in a position to assess the need for association with other bidders, and the type of association that
they would be willing to engage in given their qualifications and the requirements of the
assignment in question. Bidders should also have a clear understanding of the requirement, and
know how they will be evaluated. So the evaluation and selection criteria should be clearly
expressed in the solicitation document. These criteria should remain unchanged, unless there is a
need to modify them. If modification is required, the solicitation document should be amended
(by addendum), published and made available to all prospective bidders. Any changes in the
bid/proposal submission date, should allow bidders sufficient time to adjust their bids/proposals
accordingly to meet the new deadline for submission of bids/proposals (Mugenda, 2009).
Practitioners working for the various procurement entities, and other government officials
involved in the public procurement process, must strive for internal (personal) and external
integrity (ideally there shouldn‟t be any contradiction between the two) (Ribbers, 2006). Public
procurement practitioners should be perceived, at all times, as honest, trustworthy, responsible
and reliable. They must always have the “big picture” (purpose of the procurement requirement)
in mind and their philosophy must be that of public servants, in the true sense of the word. Public
procurement practitioners must ensure that they responsibly manage the public procurement
process within the mandate of the public procurement legal framework and in line with public
procurement principles
According to Kari, Freystad and Isaken (2010), for the e-procurement systems to be successful
the employees in the organization have to have integrity .When employees possess integrity they
are able to benefit from it. Some of the benefits include good communication. This is because
information will be done through appropriate authority‟s .Also good and appropriate decisions
will be made due to integrity .This clearly shows that with integrity procurement processes are
likely to give positive results.
In all public institutions integrity is a very key factor to successful procurement processes .Kari,
Freysted and Isaken (2010) state that when there is integrity in an organization the reliable e-
procurement systems practices transform funds into hospital, schools, and roads. Since
12
procurement accounts for such a large part of public resources it is important that the
procurement occurs in a well-managed manner .When the e-procurement systems are successful
this makes the people to have confidence in the authorities because of the changes that are
occurring around.
The G20(2015) has come up with principles of promoting integrity in public procurement
processes .Mainly because the processes are vulnerable to waste ,misconduct and corruption and
collusion which lead to in efficient allocation of public resources and diminution of trust by
citizens in the good governance of their country .Through recognizing that sound management of
procurement contracts is critical for transparency of spending taxpayers money and essential in
building stronger ,inclusive and sustainable growth and promoting development outcomes
special scrutiny should be devoted to public procurement processes .Also recognizing that the
entire public procurement cycle is a high risk activity that requires government to apply integrity
,adoption of measures against conflict of interest and corruption ,as well as limitation on
expectation to the use of competitive tendering should be standard according to internal
legislation .
2.2.2 Cost of Implementation and the implementation of e- procurement systems
Just like any other technology related program, the implementation of e-procurement in
organizations is expensive. This often includes time commitment, licensing costs, consultant
costs, pulling people away from their day to day job for process planning as well as system
testing. Also, the software itself usually has regular upgrades and costs associated with IT
maintenance. Clearly, these systems require a lot of resources.
Ratanya (2013) in her study on E-procurement implementation and supply chain integration
among large scale manufacturing firms in Nairobi, Kenya, found a number of constraints to the
implementation of e-procurement that are related to the high costs. The study sought answers to
the extent of e-procurement implementation, barriers its implementation and the impact of its
implementation on supply chain integration among large scale manufacturing firms in Nairobi. It
was revealed that the firms share information among departments and centralization of
procurement activities is also evident among them. However, it is clear that a number of
important e-procurement aspects have not been implemented by these firms. Five barriers to e-
tendering implementation were revealed and they include lack of willingness from other
13
stakeholders, getting users to accept the system, lack of internal integration of functions and
resistance from suppliers. All these challenges require the organization to use resources in order
to combat them though marketing strategies and creation of awareness through training. Finally,
the study found that e-procurement implementation explains only 57% of supply chain
integration among large scale manufacturing firms in Nairobi (Ratanya, 2013). This study
therefore recommended that large scale manufacturers in Nairobi should link their suppliers. It
will also be important to conduct a comparative study to establish the similarities and
differences.
Rotich (2014) sought to identify the Dynamic procurement practices and supply chain
performance of supermarkets in Nairobi, Kenya. The study was guided by the following
objectives; to determine the dynamic procurement practices used by supermarkets in Nairobi,
Kenya, and to establish the relationship between dynamic procurement practice and supply chain
performance of supermarkets in Nairobi, Kenya. Using descriptive research design, these study
supermarkets have become more competitive, flexible and efficient with regard to procurement
practices. The findings revealed that there has been growth in customer satisfaction and
retention, improved quality, increased productivity, organization effectiveness, and improved
customer‟s quality of life for the years 2009-2013. The study therefore concluded that Strategic
Supplier Partnership and Information technology adoption influence supply chain performance
of supermarkets in Nairobi Kenya while collaboration , agile procurement, lean and information
technology adoption dynamic procurement practices negates supply chain performance of
supermarkets in Nairobi Kenya as they have negative coefficients (Rotich, 2014).
Nzuve (2013) also investigated the implementation of e-procurement practices among private
hospitals in Nairobi, Kenya. In his study, the researcher acknowledged that the role of
purchasing in corporate success has changed considerably due to the advances in information
technologies and information systems. E he also asserted that e-procurement has thus gained
strategic visibility in its role in enhancing inter-functional and inter-organizational relationships
and has emerged as the driving force behind several supply chain practices. The study found that
e-procurement had been implemented to a moderate extent by the NHIF accredited hospitals.
Seven factors that influence e-procurement implementation were identified through factor
analysis. These include: risk perception, end user training, existing technology, top management
14
support, supplier systems integration, implementation strategy and vendor support. Of these, risk
perception had a negative relationship with e-procurement implementation while Existing
Technology, Top management support and implementation strategy all had positive relationships
(Nzuve, 2013).
2.2.3 Managerial Commitment and the implementation of e- procurement systems
Like any other technological change, e procurement brings change in an organization that
requires organizational managers to adopt change management strategies towards making the
transformation process success procurement Action Plan, (2015). One way in which managers in
organizations can reveal commitment to change is to have change management team structures
that identifies who was doing the change management work (Yildirim, Soner., 2010).
According to Andersen, K. V., (2014) change management structures outline the relationship
between the project team and the change management team. Dean further adds that the most
frequent team structures include: - change management being a responsibility assigned to one of
the project team members or an external change management team supporting a project team.
The key in developing the strategy is to be specific and make an informed decision when
assigning the change management responsibility and resources Organization for Economic Co -
operation and Development, (2009). Most major e procurement initiatives are driven by top
management. It's not unusual for a Chief Executive Officers (CEO) to be directly involved in the
early stages of the process. One often unexpected demand of implementing an e procurement
strategy is the requirement for new management techniques and specialized skills among the
organization‟s management team as (Thomas et al 2008) argues.
Managerial commitment towards e procurement implementation has also been discussed by
scholars concerning the style of leadership adopted by many managers. According to Kippis
(2009) almost all managers of African organizations, perhaps because of societal norms and
expectations emphasize bureaucratic practices with total reliance on rules and regulations that
workers obey without questioning or offering constructive criticism (Alpar P. and Olbrich S,
2015). Bureaucratic practices usually create a very cold and impersonal organizational climate.
Most of them are unconducive to attainment of organizational goals Workers in such
organizations behave like robots. The impersonal and legalistic environment according to kippis
(2009) alienates workers from both their job and organization. Managers patronizing attitude
15
towards employees may hinder from being innovative or adoptive to a change idea such as
shifting from manual procurement to e-procurement that could be of benefit to the organizations.
A study by Ndongko (2015) on Cameroon public service institutions revealed that despite the
culture which emphasizes on rigid hierarchical relationships, managers who were seen by
workers to be democratic in their techniques of management and such exerted low control over
them elicited higher levels of adopting new changes within the organization compared to
authoritarian ones. Implementation of e procurement which is at time associated with change
might require managers to commit themselves in realizing the importance of their employees in
making the adoption a success. A study by Howell (2015) on Liberian workers and that by
Greenhouse (2009) showed a considerable similarity exist in the work goals of employees
around the world and that national differences regarding job related objectives were not as great
as people thought. The findings of these studies indicate that human needs are universal, for
workers to be motivated in adopting new ideas in an organization, it is important that
organizational managers show commitment to motivate the work force and improve quality of
work life. This will ease implementation of new technologies such as e procurement within the
working fraternity.
2.2.4 Staff training and the implementation of e- procurement systems
Armstrong (2010) points out that training is the formal and systematic modification of behavior
through learning which occurs as result of education instruction development and planned
experience. The fundamental aim of training is to help the organization achieve its purpose by
adding value to its key resources the people it employs. Training means investing in people to
enable them to make the best use of their natural abilities. The objectives of training are to
develop the skills and competence of employees and improve their performance, help people to
grow within the organization in order that as far as possible in new job as appointment transfer or
promote and ensure that they become fully competent as quickly and economically as possible.
Effective training can minimize learning costs, improve individual, terms and cooperate
performance in terms of output, quality speed and overall productivity. To improve operational
flexibility by extending the shape of skills possessed by employees (multi-skilling) increases the
commitment of employees by encouraging them to identify with the mission and objectives of
the organization and to provide high level of services to customer (Dane, 2010).
16
According to Dessler (2010) it is important to evaluate training in order to assess its
effectiveness in producing the learning outcomes specified when the training intervention was
planned and to indicate where improvements or changes are required to make the training eve
more effective. It is at the planning stage that the basis upon which each category of training is to
be evaluated should be determined. At the same time, it is necessary to consider how the
information required evaluating events. Should be obtained and analyzed. The process of
evaluating training has been defined by Habun (2014) as “Any attempt to obtain information
(feedback) on the effects of a training Programme and to assess the value of the training in the
light of that information”. Evaluation leads to control which means deciding whether or not the
training was worthwhile. Preferably in cost benefit terms) and what improvement are required to
make it even more cost effective.
According to Saleemi (2009) training is the process of increasing knowledge and skills of an
employee for doing particular jobs. It is an organized activity designed to create a change in the
thinking and behavior of people and to enable them to carry out their jobs in a more efficient
manner (Saleemi, 2009). Laird (2015) defined training as the acquisition of the technology which
permits employees to perform up to standard. Thus training may be defined as an experience, a
discipline or a regimen which causes people to acquire new predetermined behaviors. One of the
most powerful benefits of collecting satisfaction data is the ability to analyze service down to the
technician level. This gives companies the ability to offer targeted training to employees based
on areas needing improvement.
According to Gichio (2015), handling the customer entails everything from setting customer
expectations properly to always looking at the situation from the customer's point of view.
Companies that collect customer satisfaction data have come up with very creative ways to train
and motivate employees using this information. This relatively effortless act can be a catalyst to
train and motivate employees to improve service delivery. Training and awarding top performing
service departments with things as simple as a trophy or a fun outing can create enthusiasm and
teamwork. Allocating cash bonuses based on customer service satisfaction results achieved
through meeting various training targets can naturally increase employee satisfaction levels,
suggesting that the higher the satisfaction scores, the bigger the bonuses (Render & Dugan,
2014).
17
2.3 Summary and Research gaps
On integrity the study postulated that two types of integrity exist; the integrity of the
procurement process, and also the integrity of public procurement practitioners (the principal
guardians of the process) which translates to reliability (Kari, 2010). The study does not indicate
how this types of integrity clearly affects the implementation of e-procurement.
Practitioners working for the various procurement entities, and other government officials
involved in the public procurement process, must strive for internal (personal) and external
integrity (ideally there shouldn‟t be any contradiction between the two) (Ribbers, 2006). There is
no explanation on how each procurement process (external and internal) affects implementation
of e-procurement. When employees possess integrity they are able to benefit from it. Some of the
benefits include good communication. This is because information will be done through
appropriate authorities. The process and means by which communication affects e-procurement
implementation not presented.
The implementation of e-procurement in organizations is expensive. This often includes time
commitment, licensing costs, consultant costs, pulling people away from their day to day job for
process planning as well as system testing. Also, the software itself usually has regular upgrades
and costs associated with IT maintenance. Clearly, these systems require a lot of resources. The
specific ways in which the mentioned costs affects implementation of e-procurement not
explained. Andersen, K. V., (2014) postulates that change management structures outline the
relationship between the project team and the change management team with no further
explanation on the relationship and how this can affects e-procurement implementation.
Bureaucratic practices usually create a very cold and impersonal organizational climate. Most of
them are unconducive to attainment of organizational goals Workers in such organizations
behave like robots.Dessler (2010) it is important to evaluate training in order to assess its
effectiveness in producing the learning outcomes specified when the training intervention was
planned and to indicate where improvements or changes are required to make the training even
more effective. There is no evidence in the study to show how e-procurement implementation is
affected by training.
18
2.4 Conceptual Framework
Figure 2. 1: Conceptual Framework
Independent Variables Dependent Variable
Source: Author (2019)
Integrity
Staff training
Managerial
Commitment
Implementation
cost
Implementation of e-
procurement systems in
public sector
19
2.5 Operationalization of variables
2.5.1 Integrity
For e-procurement to be efficient and effective in Kenya, the procurement practitioners in Kenya
have to be educated and well informed about integrity (OECD, 2009). Integrity allows the
procurement practitioners to work with little or no scandals .In Kenya a lot has been lost through
the e-procurement process IFMIS .This shows that some e-procurement practitioners lack
integrity.
2.5.2 Cost of implementation
This includes time commitment, licensing costs, consultant costs, pulling people away from their
day to day job for process planning as well as system testing. Also, the software itself usually has
regular upgrades and costs associated with IT maintenance. Clearly, these systems require a lot
of resources (Ratanya, 2013).
2.5.3 Managerial commitment
Commitments are essential to management because they are the means by which a company
secures the resources necessary for its survival. For instance, investors, customers, and
employees would likely shun any company whose management refused to commit publicly to a
strategy and back its intentions with investments (Mwangi, 2016)
2.5.4 Staff training
According to Dessler (2000) it is important to evaluate training in order to assess its
effectiveness in producing the learning outcomes specified when the training intervention was
planned and to indicate where improvements or changes are required to make the training eve
more effective. It is at the planning stage that the basis upon which each category of training is to
be evaluated should be determined.
2.6 Chapter Summary
This chapter has documented an extensive and intensive review of both published and
unpublished works including journals, periodicals and books relating to integrity, cost, staff
training and managerial commitment on the implementation of e-procurement systems. The
literature review has thus been centered on the introduction, theoretical review, empirical review,
and summary of knowledge, research gaps, conceptual framework and the operationalization of
variables.
20
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 Introduction
Research design and methodology gives an explanation into what type of research this study is
all about. It also defines the population of the study and the specific sampling techniques to be
used, data analysis and collection methods. The chapter also includes design, pilot study,
validity, reliability and ethical consideration.
3.1 Research Design
The general layout that the researcher uses to respond to research questions is referred to as
research design. The research design used in this research is descriptive research design.
According to Burns and Grove (2003); descriptive research design provides a picture of a
situation as it naturally happens .It is used to validate a current practice and make judgment and
also develop other theories for the purpose of a study.
The research design will adopt a descriptive design that established the factors affecting
implementation of e-procurement with very specific factors being explored. According to
Kerlinger (2013) research design is the plan and structure of investigation so conceived so as to
obtain answers to research questions or test the research hypotheses. The plan represents the
overall strategy used in collecting and analyzing data in order to answer the research questions.
3.2 Target Population
This is any group of individuals with one or more behavior, characteristics in common that are
relevant to the study. Target population is therefore a well-defined collection of objects or
individuals identified to have similar characteristics of interest to the study. All individuals or
objects in a given population normally have a common and binding characteristic or trait. In
essence, the population description and the binding common characteristics of its members are
usually the same (Sheilds et al., 2013).
21
For this study, the target population were the employees of National Youth Service who were
drawn from the management, procurement department and the general staff, a total of 595
employees. This is due to the employees‟ role in the implementation of e-procurement systems at
NYS.
Table 3. 1: Target Population
Category Target population Percentage
Managers 102 17
Procurement officers 198 33
General staff 295 50
Total 595 100
3.3 Sample and Sampling Techniques
According to Hand (2008) a sample is a fine part of statistical population whose properties are
studied to gain information about the whole population. Sample size is the set of respondents
selected from a large population for the purpose of conducting the study. In this case the sample
Size selected was of 59 employees. The sample was selected through stratified random sampling
Technique where employees from all the job categories were selected to give a total sample for
the study. Stratified random sampling enabled the researcher to control the sample size. It is
recommended that 10% of the total population makes a reliable sample size that reduces errors
(Berinsky, 2009).
Table 3. 2: Sample Size
Category Target population Sample Size Percentage
Managers 102 10 17
Procurement officers
General staff
198
295
20
29
39
44
Total 595 59 100
22
3.4 Data Collection Instruments
The instrument that was used was a questionnaire. A questionnaire is an instrument of research
that contains questions on the variables of the study. The researcher used questionnaires because
they are more efficient and an economical tool for descriptive and preventive research for the
sample size that is chosen (Kothari, 2014) .The questions were open ended and enclosed.
Questionnaires were easy to analyze and administer and were administered to the selected
respondents. The study used secondary data for literature review; these materials used are books,
journals, reports, journals, and magazine and internet literature.
3.5 Pilot study
A pilot study is a mini-version of a full-scale study or a trial run done in preparation of the
complete study. The latter is also called a „feasibility‟ study. It can also be a specific pre-testing
of research instruments, including questionnaires or interview schedules (Van Teijlingen&
Hundley, 2011)
A pretest was done on the questionnaires to determine their reliability and validity to the study.
Baker (2014) found that a sample size of 10% of the sample size for the actual study is
reasonable number of participants to consider enrolling in a pilot. These preliminary
questionnaires were sent to 6 employees of NYS to fill in and send them back for evaluation and
the participants involved in pretest did not take part of the main study. The aim of the pilot
testing was to check the reliability and validity of the questionnaires to achieve accurate results.
3.5.1 Validity
Validity refers to a measurement devices ability to vary directly with a measure of the same
construct or indirectly with a measure of an opposite construct. It allows showing that the test is
valid by comparing it with an already valid test. Validity can be seen as the core of any form of
assessment that is trustworthy and accurate (Bond, 2013) Content validity is concerned with a
tests ability to include or represent all of the content of a particular construct. The research
instrument was validated by the Management University of Africa supervisor after sending to
him the research questions.
23
3.5.2 Reliability
This study used the test/re-test method to determine the reliability of the research instruments.
This involved administering the questionnaires to the eight respondents twice in a span of one
week. The researcher then compared the results of the two events to check for any correlation
between the responses, (Kumar, 2015). The test/retest method was preferred because it was
easier to administer than the internal consistencies method for testing reliability
3.6 Data Collection Methods and Procedure
The data collection method was done mainly through the administration of a structured
questionnaire. The questions were open ended and enclosed. Questionnaires were easy to analyze
and administer and were administered to the selected respondents. It should be noted that, the
study used secondary data for literature review.
3.7 Data analysis and presentation
Marshall and Rossman(2009) describe data analysis as the process of bringing order, structure
and meaning to the mass of collected data This is the process of gathering, modeling and
transforming raw data with the goal of highlighting useful information, suggesting, conclusion
and supporting decision making (Kotharei, 2011).
For analysis, the questionnaire data were coded before entry. After coding, the data were linked
to managers, procurement offices and general staff (target population as collected) and then
entered together with questionnaire data into a spread sheet then transferred to the SPSS 17.0
software for analysis. For the purposes of identification and confidentiality, no names were used.
According to Amin (2015) Descriptive statistics provides the techniques numerically and
graphically presenting information that gives an overall picture of the data collected. The
researcher used Pearson‟s correlation co-efficient calculation after data was aggregated to turn
categorical data to numerical representation that required numerical methods. From such,
descriptive statistics, frequency tables, graphics, and correlation tables were developed to help
describe the data gathered.
24
3.8 Ethical considerations
This addresses how the participants are protected:
3.8.1 Privacy
Employees who participated in the research were not allowed to write their names on any part of
the questionnaire .This was so as to protect their identity.
3.8.2 Voluntary participation
Only employees who volunteered to participate in the research weregiven questionnaires .No one
was forced into anything.
3.8.3 Informed Consent
The researcher ensured that the principle of informed consent was properly applied and the
researcher explained to the respondents the expectations of the study and they were asked to ask
questions where there was a misunderstanding to avoid hang-ups while responding to
questionnaires.
3.8.4 Confidentiality
The researcher granted the respondents utmost confidentiality of the responses that they provided
apart from the finding being meant for an examinable project at Management University. That
data were not availed to any other party.
3.9 Chapter Summary
The chapter focused on the methodology that wasused to operationalize the study. The research
design was descriptive and the target population being 595 from which the sample of 59
participants was picked for the study. The research instrument was the questionnaire used to
collect data and the study was analyzed using SPSS and findings presented on chats and figures.
25
CHAPTER FOUR
RESEARCH FINDINGS AND DISCUSSION
4.0 Introduction
The chapter presents the findings explored from methodologies and collected from the field
which is then presented on tables and charts in regard to the research variables under study.
4.1 Presentation of research findings
4.1.1 Response rate
The researcher sort to establish the exact number of respondents that participated in the study
and the findings were tabulated on a table.
Table 4. 1: Response rate
Category Frequency Percentage
Response
Non-response
57
2
97
3
Total 59 100
Figure 4. 1: Response rate
Response 97%
Non-response 3%
0%
0%
26
It was noted that 97% of the participants responded to the study while 3% did not participate in
the study. The response rate met the threshold of sufficient rate for the study since it was above
50% of the sampled respondents (Kumar, 2015).
4.1.2 Background Information
4.1.2.1 Gender of the respondents
The aim of the researcher was to determine the gender of the respondents and the results were
presented on the table as shown.
Table 4. 2: Gender of the respondents
Category Frequency Percentage
Female
Male
36
23
61
39
Total 59 100
Figure 4. 2: Gender of the respondents
61%
39%
0% 0%
Female Male
27
The findings indicated that female were majority at 61% while male respondents were 39%. The
perception of both gender in the study was important and the study met the 1/3 gender rule in
Kenya (Kenyan Constitution, 2010).
4.1.2.2 Age of the respondents
The age of the respondents was sort and the findings were tabulated on the table as shawn.
Table 4. 3: Age of the respondents
Category Frequency Percentage
18-25 years
26-35 years
36-45 years
46-55 years
56-65 years
8
18
15
12
6
13
30
25
20
12
Total 59 100
Figure 4. 3: Age of the respondents
The results indicated that those respondents between 18-25 years were at 13%, between 26-35
years were at 30%, between 36-45 years were at 25%, those between 46-55 years were at 20%
13%
30%
25%
20%
12%
18-25 years 26-35 years 36-45 years 46-55 years 56-65 years
28
and then those between 56-65 years were at 12%. The age of the respondents was sufficient since
every age group was represented according to the intention of the study. The sufficient age group
representation should represent all the targeted age in the study (Osoo, 2008).
4.1.2.3 Years of Service
The researcher sort to establish the years the respondents had served in the organization and the
data obtained were presented on the table.
Table 4. 4: Years of service
Category Frequency Percentage
1-5 years
6-10 years
11-15 years
16-20 years
21-25 years
15
22
11
7
4
25
37
19
12
7
Total 59 100
Figure 4. 4: Years of service
The study established that those respondents who had worked between 1-5 years were at 25%,
between 6-10 years were at at 37%, between 11-15 years were at 19%, those between 16-20
years were at 12% and then between 21-25 years were at 7%. The years of service was reliable
25%
37%
19%
12%
7%
19%
1-5 years 6-10 years 11-15 years 16-20 years 21-25 years
29
for the study since all the targeted years were represented and the where the majority were in the
lower years.
4.1.2.4 Job group of the respondents
The researcher aimed at establishing the job group of the respondents to determine the level of
seniority and the results were tabulated on the table.
Table 4. 5: Job group of the respondents
Category Frequency Percentage
F
G
H
J
K
L
M
10
12
18
8
5
4
2
17
20
30
13
8
7
5
Total 59 100
Figure 4. 5: Job group of the respondents
0%
5%
10%
15%
20%
25%
30%
F G H J K L M
17%
20%
30%
13%
8% 7% 5%
30
The researcher established that this in the job group F were at 17%, job group G at 20%, job
group H at 30%, job group J at 13%, job group K at 8%, job group L at 7% and job group M at
5%. The job group positions were well represented in the study to meet the sought objectives of
the study from the positions held by respondents.
4.1.3 Integrity
4.1.3.1 Integrity on implementation of e-procurement process
The researcher sought to establish whether integrity affects reliability of e-procurement process
or not. The results were presented on the table.
Table 4. 6: Integrity on implementation of e-procurement process
Category Frequency Percentage
Yes
No
46
13
78
22
Total 59 100
Figure 4. 6: Integrity on implementation of e-procurement process
Yes 78%
No 22%
0%
0%
Yes No
31
The results indicated that lack of integrity affects reliability of implementation of e-procurement
process according to 75% of the respondents while 22% did not support this.
4.1.3.2 Trustworthy on implementation of e-procurement
This was to find out if trustworthy among the implementing e-procurement officers plays a major
role in success or failure of the process or not. The findings were presented on the table.
Table 4. 7: Trustworthy on implementation of e-procurement
Category Frequency Percentage
Strongly agree
Agree
Disagree
Strongly disagree
19
24
10
6
32
40
17
11
Total 59 100
Figure 4. 7: Trustworthy on implementation of e-procurement
From the findings it was established that 72% of the respondents agreed to trustworthy among
the implementing officers playing a major role in success or failure of the process while 28% did
not agree to it.
32%
40%
17%
11%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Strongly agree
Agree
Disagree
Strongly disagree
32
4.1.3.3 Poor communication
The study aimed at exploring the extent at which poor communication affect the implementation
of e-procurement in an organization. The findings were presented on the table.
Table 4. 8: Poor communication
Category Frequency Percentage
Great extent
Normal extent
Less extent
No impact
32
12
8
7
54
20
14
12
Total 59 100
Figure 4. 8: Poor communication
It was established that poor communication affects the implementation of e-procurement in an
organization to a great extent at 54%, normal extent at 20%, less extent at 14% and no impact at
12%.
4.1.4 Implementation Cost
Series 1
Series 2
Series 3
0%
10%
20%
30%
40%
50%
60%
Great extent Normal extent Less extent No impact
54%
20%
14% 12%
33
4.1.4.1 Consultancy cost
This was to determine whether consultancy cost on e-procurement affects the implementation of
the process or not. The data obtained were presented on the table.
Table 4. 9: Poor communication
Category Frequency Percentage
Yes
No
33
26
56
44
Total 59 100
Figure 4. 9: Consultancy cost
The results indicated that consultancy cost on e-procurement affects the implementation of the
process according to 56% while 44% did not agree to this.
4.1.4.2 Time taken for implementation
The researcher sought to know if time taken to implement the e-procurement process is
important to be considered before starting the process to ensure effective and meaningful time
utilized or not. The data were tabulated on the table as shown.
Table 4. 10: Time taken for implementation
56%
44%
0% 0%
Yes
No
34
Category Frequency Percentage
Strongly agree
Agree
Disagree
Strongly disagree
26
20
8
5
44
34
14
8
Total 59 100
Figure 4. 10: Time taken for implementation
It was established that 78% of the respondents agreed to time taken to implement the e-
procurement process being important to be considered before starting the process to ensure
effective and meaningful time utilized while the remaining 22% did not agree.
4.1.5 Staff Training
4.1.5.1 Staff competence
The researcher sought to determine if competence of staff involved in e-procurement affect its
implementation and the results were tabulated on the table.
44%
34%
14%
8%
Strongly agree Agree Disagree Strongly disagree
35
Table 4. 11: Staff competence
Category Frequency Percentage
Yes
No
42
17
71
29
Total 59 100
Figure 4. 11: Staff competence
The researcher noted that 71% agreed to competence of staff involved in e-procurement affecting
its implementation while 29% did not agree to this.
4.1.5.2 Staff Training
This was aimed at finding out the extent at which staff training affects the productivity of staff in
the implementation of e-procurement. The data obtained were tabulated on the table as shown.
Table 4. 12: Staff training
Category Frequency Percentage
Great extent
Normal extent
Less extent
33
11
9
56
18
15
71%
29%
0% 0%
Yes No
36
No impact 6 11
Total 59 100
Figure 4. 12: Staff training
The study noted that staff training affects the productivity of staff in the implementation of e-
procurement to a great extent according to 56%, normal extent at 18%, less extent at 15% and no
impact at 11%.
4.1.6 Managerial Commitment
4.1.6.1 Informed decision making
This was to determine whether managerial commitment facilitates informed decision making in
the implementation of e-procurement or not. The results were presented on the table as shown.
Table 4. 13: Informed decision making
Category Frequency Percentage
Yes
No
36
23
61
39
Total 59 100
0%
10%
20%
30%
40%
50%
60%
Great extent Normal extent Less extent No impact
56%
18% 15%
11%
37
Figure 4. 13: Informed decision making
The study determined that 61% of the respondents agreed to managerial commitment facilitating
informed decision making in the implementation of e-procurement while 39% did not agree to
this.
4.1.6.2 Strict bureaucratic operations
The researcher sort to establish whether strict bureaucratic operations in the organization in the
implementation of e-procurement affects the process or not. The findings were presented on the
table as shown.
Table 4. 14: Strict bureaucratic operations
Category Frequency Percentage
Strongly agree
Agree
Disagree
Strongly disagree
24
18
10
7
41
30
17
12
Total 59 100
Yes 61%
No 39%
0%
0%
Yes No
38
Figure 4. 14: Strict bureaucratic operations
The researcher established that 71% of the respondents agreed to strict bureaucratic operations in
the organization in the implementation of e-procurement affecting the process while 29% did nit
agree to this.
4.2 Limitation of the study
Some respondents were unwilling to give accurate information for fear that the information may
be sensitive or confidential bearing in mind the level of importance attached to inventory
management.
To overcome this, the researcher used an introductory letter from Management University of
Africa stating that the study was for academic purposes only and any information given was
dealt with utmost confidence.
4.3 Chapter Summary
The chapter focused on the findings of data from the field where the data was presented on the
tables and charts. The data obtained was based on the research questions from which each
variable was determined based on different categories. The data presented on the tables and
figures were done statements to verify and make it authentic. The limitations of the study was
done before summarizing the chapter.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE
41%
30%
17%
12%
39
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction
The chapter presented the summary of the findings from chapter four from which the conclusion
on the variables under were made. The recommendations giving the way forward and further
studies was done based on the research questions under study.
5.1 Summary of research findings
5.1.1 Background Information
It was noted that 97% of the participants responded to the study while 3% did not participate in
the study. The response rate met the threshold of sufficient rate for the study since it was above
50% of the sampled respondents (Kumar, 2015). The findings indicated that female were
majority at 61% while male respondents were 39%. The perception of both gender in the study
was important and the study met the 1/3 gender rule in Kenya (Kenyan Constitution, 2010). The
results indicated that those respondents between 18-25 years were at 13%, between 26-35 years
were at 30%, between 36-45 years were at 25%, those between 46-55 years were at 20% and
then those between 56-65 years were at 12%. The age of the respondents was sufficient since
every age group was represented according to the intention of the study. The sufficient age group
representation should represent all the targeted age in the study (Osoo, 2008). The study
established that those respondents who had worked between 1-5 years were at 25%, between 6-
10 years were at at 37%, between 11-15 years were at 19%, those between 16-20 years were at
12% and then between 21-25 years were at 7%. The years of service was reliable for the study
since all the targeted years were represented and the where the majority were in the lower years.
The researcher established that this in the job group F were at 17%, job group G at 20%, job
group H at 30%, job group J at 13%, job group K at 8%, job group L at 7% and job group M at
5%. The job group positions were well represented in the study to meet the sought objectives of
the study from the positions held by respondents.
5.1.2 Integrity
The results indicated that lack of integrity affects reliability of implementation of e-procurement
process according to 75% of the respondents while 22% did not support this. From the findings it
was established that 72% of the respondents agreed to trustworthy among the implementing
40
officers playing a major role in success or failure of the process while 28% did not agree to it. It
was established that poor communication affects the implementation of e-procurement in an
organization to a great extent at 54%, normal extent at 20%, less extent at 14% and no impact at
12%.
5.1.3 Implementation cost
The results indicated that consultancy cost on e-procurement affects the implementation of the
process according to 56% while 44% did not agree to this. It was established that 78% of the
respondents agreed to time taken to implement the e-procurement process being important to be
considered before starting the process to ensure effective and meaningful time utilized while the
remaining 22% did not agree.
5.1.4 Staff training
The researcher noted that 71% agreed to competence of staff involved in e-procurement affecting
its implementation while 29% did not agree to this. The study noted that staff training affects the
productivity of staff in the implementation of e-procurement to a great extent according to 56%,
normal extent at 18%, less extent at 15% and no impact at 11%.
5.1.5 Managerial Commitment
The study determined that 61% of the respondents agreed to managerial commitment facilitating
informed decision making in the implementation of e-procurement while 39% did not agree to
this. The researcher established that 71% of the respondents agreed to strict bureaucratic
operations in the organization in the implementation of e-procurement affecting the process
while 29% did not agree to this.
5.2 Conclusions
On integrity the findings concluded that lack of integrity affects reliability of implementation of
e-procurement process. It was also clear from the conclusion that trustworthy among the
implementing officers play a major role in success or failure of the process. Again poor
communication affects the implementation of e-procurement in an organization to a great extent.
41
On implementation cost it was concluded that consultancy cost on e-procurement affects the
implementation of the process though not entirely. It was also concluded that time taken to
implement the e-procurement process is important to be considered before starting the process to
ensure effective and meaningful time utilized.
On staff training, the study concluded that competence of staff involved in e-procurement affects
its implementation. It was also clear from the conclusion that staff training affects the
productivity of staff in the implementation of e-procurement to a great extent.
On Managerial commitment, the conclusion indicated that managerial commitment facilitates
informed decision making in the implementation of e-procurement. Also the findings noted that
strict bureaucratic operations in the organization in the implementation of e-procurement affects
the process.
5.3 Recommendations
5.3.1 Integrity
Organizations implementing e-procurement should ensure that integrity is upheld at all levels of
implementation so as to have a reliable implementation process for success of the initiative. This
will promote trustworthiness among the implementing officers that can determine success of
failure of the process. Communication in the process of implementation of e-procurement should
be effective since poor communication affects the process to a great extent.
5.3.2 Implementation cost
The cost of consultancy on e-procurement implementation should be well considered and given
priority to ensure only the very necessary cost is utilized to avoid inconveniences emerging from
such costs. Before starting implementation process of e-procurement, it is important to have a
planned time frame on which the entire implementation process will take for effective and
meaningful time utility.
42
5.3.3 Staff training
The organization engaging in the implementation of e-procurement should ensure that the staff
involved in the process are competent in the field for effective delivery of the initiative. The staff
should therefore be trained to enhance on desired productivity of the e-procurement process
implementation.
5.3.4 Managerial commitment
In the process of e-procurement implementation, management should be committed in the
process since there will be need for informed decision making instances which can only be
possible with the management being fully committed in the process. The management should not
be so strict on the bureaucratic operations in the implementation of e-procurement since this may
affect the process.
5.4 Suggestions for further studies
The further study is needed on the effects of communication on the implementation process of e-
procurement so as to identify the best ways communication can be utilized for the successful
process.
More studies to be explored on factors to be considered in planning and determining the
implementation cost in the process of e-procurement implementation so as to have a proper
guidelines on coming up with such costs.
The impacts and role of staff training and competence should be studies to assist in projecting the
effectiveness of training in the implementation process and the expected outcome.
The extent at which the management should commit to the implementation of e-procurement
should be explored further to ensure a better working environment for the staff on the process.
43
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Institute.
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46
APPENDIXES
APPENDIX I: LETTER TO RESPONDENTS
The Management University of Africa
Bachelors of Management and leadership,
P.O.BOX, 29677-00100 Nairobi,
KENYA.
JUNE, 2018.
RE: REQUEST TO FILL QUESTIONNAIRE
Dear Respondent,
I am a student of the Management University of Africa pursuing a Bachelor degree in
procurement and supply chain management, conducting a study on the factors that affect the
procurement process in public institutions in Kenya focusing on the National Youth Service. As
part of my course requirement. I hereby kindly request your opinion on the questionnaire. This
study is purely academic and your views and opinions will be treated with utmost confidentiality.
Kindly do not write your name anywhere on the questionnaire. Please complete the questionnaire
by ticking the most appropriate answers in the spaces provided.
Thank You.
Yours
Sincerely,
FeizaShariff
47
APPENDIX II: QUESTIONNAIRE
Hello I am a student at The Management University of Africa taking Bachelors in procurement
and supply chain management. I am required to conduct a study for the award of a degree.
Instructions
Kindly do not write your name on any part of this questionnaire
Follow the instructions provided in each section
Fill the questions accordingly
SECTION A: BACKGROUND INFORMATION
Instructions: Use a tick ( ) to indicate your answer.
1. Gender:
Female Male
2. Age:
18 – 25 26 – 35 36 – 45 46 – 55 56-65
3. Years of service:
1-5 6-10 11-15yrs 16-20 21-25
4. Indicate your job group
F G H J K L M
SECTION B: INTEGRITY
5. Does lack of integrity affects reliability of implementation of e-procurement process?
Yes
No
6. Trustworthy among the implementing e-procurement officers plays a major role in
success or failure of the process. Do you agree?
48
Strongly agree
Agree
Disagree
Strongly disagree
7. To what extent does poor communication affect the implementation of e-procurement in
an organization?
Great extent
Normal extent
Less extent
No impact
SECTION C: IMPLEMENTATION COST
8. Does the consultancy cost on e-procurement affect the implementation of the process?
Yes
No
9. The time taken to implement the e-procurement process is important to be considered
before starting the process to ensure effective and meaningful time utilized. Do you
agree?
Strongly agree
Agree
Disagree
Strongly disagree
10. To what extent does licensing cost involved affect the implementation of e-procurement
in an organization?
Great extent
Normal extent
Less extent
49
No impact
SECTION D: STAFF TRAINING
11. Does competence of staff involved e-procurement affect its implementation?
Yes
No
12. To what extent does staff training affects the productivity of staff in the implementation
of e-procurement?
Great extent
Normal extent
Less extent
No impact
13. Do you agree that employee commitment to acquire more skills on e-procurement
impacts on implementation of e-procurement?
Strongly agree
Agree
Disagree
Strongly disagree
SECTION E: MANAGERIAL COMMITMENT
14. Does managerial commitment facilitates informed decision making in the implementation
of e-procurement?
Yes
No
15. The strict bureaucratic operations in the organization in the implementation of e-
procurement affects the process. Do you agree?
Strongly agree
50
Agree
Disagree
Strongly disagree
16. To what extent does managerial commitment affects employee motivation on the
implementation of e-procurement?
Great extent
Normal extent
Less extent
No impact
