E-procurement adoption by government parastatals in Kenya- the supplier perspective

Powerful Essays
E-PROCUREMENT ADOPTION BY GOVERNMENT PARASTATALS IN KENYA:
THE SUPPLIER PERSPECTIVE

BY
JOHN THURANIRA KINOTI

A MANAGEMENT RESEARCH PROJECT SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR AWARD OF THE DEGREE OF
MASTER BUSINESS ADMINISTRATION (MBA), THE SCHOOL OF BUSINESS,
UNIVERSITY OF NAIROBI

NOVEMBER, 2013 i DECLARATION

I declare that this research project is my original research work and has not been presented to any other university for award of a degree.

Signature:

____________________

Students Name:

John Thuranira Kinoti

Reg. No.

D61/60429/2010

Date

______________________

SUPERVISOR DECLARATION

This research project has been submitted with my permission as the University Supervisor.

Signature:

______________________

Supervisors Name:

Dr. James Muranga Njihia

Lecturer, University of Nairobi, School of Business

Date

________________________ ii DEDICATION
This work is especially dedicated to my fiancé Sheilah for believing in me and her relentless support and encouragement in my studies and to all my family members for their inspiration and prayers. Your support brought me this far.

iii

ACKNOWLEDGEMENTS
I sincerely acknowledge my supervisor, Dr. Njihia for his immense support, guidance and patience, without whose constructive criticism and advice, this work would not have been complete. I also thank the University of Nairobi administration for providing aconducive environment in reference to infrastructure and other support that was directly or indirectly linked to the study.
Thanks to the staff of the suppliers sampled who provided data and allowed me to use the information they provided as results to the study.
Thank you to all my friends who contributed to the completion of this academic document both directly and indirectly. They provided me with logistical and moral support that gave me every reason to work harder and ensure that this study becomes a



References: Arbadeen Group. (2005). Best practices in E-procurement: Reducing costs and increasing value through online buying Baker, G. P. and Hubbard, T. N. (2003). Make Versus Buy in Trucking: Asset Ownership, Job Design and Information, American Economic Review, Vol Baker, G. P. and Hubbard, T. N. (2004). Contractibility and Asset Ownership: On-Board computers and Governance in U.S Issue 4, pp. 1443 - 1479. Bartlett J. E, K. J. (2001). Organizational Research. Determining Sample Size in Survey Research. Chaffey, D. (2009). E-business and e-commerce Management, 4th Edition. England: Prentice Hall. Dai, Q. and Kauffman, R.J. (2000). Business models for Internet-based E-Procurement systems and B2B electronic markets: An exploratory assessment, Proceedings of the 34th Hawaii Davila, A., Gupta, M. and Palmer, R.J. (2003). Moving procurement systems to the internet: the adoption and use of E-procurement technologies models Department of Economic and Social affairs - United Nations. (2011). E-procurement: Towards Transparency and Efficiency in public service Delivery Drew, S. (2003). Strategic uses of e-commerce by SMEs in the East of England. European Management Journal 21: 79 – 88. Enders, T. J (2008), Strategies for e-business creating value through Electronic & mobile commerce, second edition, London, prentice Hall. Elmagharby, W. J. (2000). Supply Contract Competition and Sourcing Policies, Manufacturing and Service Operations Management, Vol Hart, C. (1998). Doing a Literature Review: Releasing the Social Science Research Imagination. Hitt, L. M., Culnan, M. J. and Armstrong, P. K. (1999). Information Technology and Firm Boundaries: Evidence from Panel Data, Information Systems Research, Volume 10, Issue Holland, C. P. and Lockett, A. G. (1997).Mixed Mode Network Structures: The Strategic Use of Electronic Communication by Organizations, Organization Science, Vol Kenneth, L. (2000). Purchasing and Supply Chain Management 5th edition. England: Prentice Hall. Kinyanjui and McCormick, (2002).E-commerce in the garment industry Usage, Obstacles and Policies, Institute for Development Studies Kumar, A.P &Agrahari, A. (2007). E-Procurement in Emerging Economies: Theory and Cases. Kwon, T.H. &Zmud, R.W. (1987).The use of ICT to enhance supply chain management in the electronics and chemical industries Malone, T. W., Joanne, Y. and Benjamin, R. I. (1987): Electronic Markets and Electronic Hierarchies, Communications of the ACM, Vol Miles, M.B. & Huberman, M.A. (1984). Qualitative Analysis: An Expanded Sourcebook (2ndEdt) Min, H. & Galle, W. (2003). E-purchasing: profiles of adopters and non-adopters. Industrial Marketing Management, 32, 227 – 233. Mitra, K., Lakha, K. and Abdulla,S. (2000). To B or Not To B: An overview of E-commerce. The Institute of Certified Public Accountants of Kenya (Jan – March 2001 issue), Nairobi. Mukhopadhyay, T. and Kekre, S. (2002). Strategic and Operational Benefits of Electronic Integration in B2B procurement Processes, Management Science, Vol Neef, D. (2001). E-Procurement: From Strategy to Implementation. Prentice Hall Inc. Patterson, K., Grimm, C. &Corsi, T. (2003).Adopting new technologies for supply chain management Porter, M. (1985).Competitive Advantage. Free Press, New York. Public Procurement Oversight Authority, (2009).Trends in Electronic Procurement. Kenya Procurement Journal.4 pp OECD (Organization for Economic Cooperation and Development), (1998).SMEs and electronic commerce Odhiambo, W. & Kamau, P. (2003).Public Procurement Lessons from Kenya, Tanzania and Uganda Saleemi, N. A. (2000). Purchasing and supplies Management Simplified. Nairobi: Saleemi Publications Limited. Samaniego, M.J.G., Arranz, A.M.G. and Cabezudo, R.S.J. (2006) ‘Determents of Internet use in the purchasing process’, Journal of Business & Industrial Marketing, Vol 21, No Scupola, A, (2009). Introducing E-Procurement In a Local Healthcare Agency. Idea Group Inc. Sigala, M. (2003a). Investigating the e-factors impacting e-commerce adoption by SMTHEs in Greece Talluri, S., Chung, W. and Narasimhan, R. (2006) ‘An optimization model for phased supplier integration into e-procurement system’, IIE Transactions, Vol

You May Also Find These Documents Helpful

  • Powerful Essays

    E Commerce Initiatives

    • 1324 Words
    • 4 Pages

    References: Burnson, P. (2013, 2 8). Endicia Praises USPS for its E-Commerce Initiative. Retrieved 7 12, 2015, from Logistics Management: http://www.logisticsmgmt.com/article/endicia_praises_usps_for_its_e_commerce_initiative…

    • 1324 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Pagbabago Ng Klima

    • 8141 Words
    • 33 Pages

    Above all, to Almighty God for His unending blessings, strength, guidance and wisdom which help me face all the challenges and struggles that have come on my way while this research was conducted.…

    • 8141 Words
    • 33 Pages
    Better Essays
  • Satisfactory Essays

    E- Procurement at Ibm

    • 295 Words
    • 2 Pages

    IBM was able to reduce its procurement costs by sending purchase orders, receiving invoices and paying suppliers by using the World Wide Web as its transaction processing network. Much of the savings came from eliminating intermediaries—IBM was able to eliminate intermediaries because the Internet allowed IBM to work with multiple tiers of suppliers simultaneously.…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Mr. Kennedy

    • 1366 Words
    • 6 Pages

    Without the use of e-procurement the purchasing of good and services for business can be a waste of time and money. E-procurement negates the need for paper, makes approval instant; records are automatically kept of all transactions, it can be integrated into the enterprise resource planning so finance is automatically updated.…

    • 1366 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Kangkong as Oil

    • 3416 Words
    • 14 Pages

    To my dearest family who never fails to believe in me, to their undying love and support, and for their assistance and guidance.…

    • 3416 Words
    • 14 Pages
    Satisfactory Essays
  • Powerful Essays

    Pm 598 Quiz 3 Answers

    • 1552 Words
    • 7 Pages

    E-procurement is predicated on being able to deliver a variety of benefits, which include: lower prices, lower transactional costs, better compliance and speedier processing and delivery. E-procurement is done at a much more rapid pace, but still not as fast. However, e-procurement allows for buyers of commodity products, services, and even some customized business solutions to conduct market research, solicit bids or proposals, analyze offers, place orders, submit invoices, and transmit payment for purchases electronically via numerous methods, including net marketplaces, web portals, private exchanges, vertical exchanges, and horizontal exchanges.…

    • 1552 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    To my family for their full supports on me in my study and who are always concerned;…

    • 3928 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Muthoot

    • 552 Words
    • 3 Pages

    A special thanks to my friends and family for their encouragement and help in completion of the study…

    • 552 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Merger Analysis

    • 15900 Words
    • 64 Pages

    I declare that this project work is my original work. It has not been submitted for any…

    • 15900 Words
    • 64 Pages
    Powerful Essays
  • Good Essays

    BAL

    • 1131 Words
    • 4 Pages

    In early 1999, BAL recruited a new national procurement manager, Russell Menere. His immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. Russell needed to decide what BAL’s next step should be, should BAL invest in new system that would simplify procurement processes; should BAL sit on the fence? The main issue would be how to implement and obtain cost effective e-procurement system that is integrated with current legacy systems.…

    • 1131 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Bridges

    • 3499 Words
    • 14 Pages

    I would also like to acknowledge my parents for always showing support towards my studies in school…

    • 3499 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Procedures are operating instructions detailing functional duties or tasks. According to Saunders (1997), the division between public and private sectors creates two different worlds, requiring different approaches to procurement. Public ownership imposes obligations with regard to public accountability, leading to prescribed procedures and policies. All steps of the procurement cycle must be properly documented with each step being approved by the designated authority. Christopher (2005) argued that public procurement procedures tend to be characterised by high levels of bureaucracy independent of order value; poor communications and focusing on unit price rather than long term relations.…

    • 1202 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Public Procurement in Kosovo

    • 8402 Words
    • 34 Pages

    Published by the American Chamber of Commerce in Kosovo © American Chamber of Commerce in Kosovo, 2012 All rights reserved. All the written and visual materials contained herein are the exclusive property of the American Chamber of Commerce in Kosovo. This material may be reproduced and otherwise utilized for non-commercial purposes related to public procurement if this publication is correctly and clearly identified as the source. This publication has been produced with the financial support of the Kosovo Foundation for Open Society. The contents of this publication are the sole responsibility of American Chamber of Commerce and not necessarily reflect the position of the Kosovo Foundation for Open Society.…

    • 8402 Words
    • 34 Pages
    Powerful Essays
  • Powerful Essays

    This paper will explore how and what a company should consider when interested in implementing an e-procurement process to their organization. With so many variables to consider and products out there it can be overwhelming and one may lose the goals and purpose the organization originally started with. If the right process is not in place, an organization may come out worse before the implement. If implemented correctly, the e-procurement process can increase efficiency, productivity and add additional cost savings opportunities. There are also benefits in supply chain with greater forecasting and providing a competitive edge against their competitors.…

    • 3284 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    In modern procurement, sourcing aims at collecting and analyzing information about capabilities within the market to satisfy the organization’s requirements, such as obtaining updated cost information and appropriate supplier qualification criteria as well as identifying alternative products in the market. A through sourcing process in procurement or supply chain management leads to identification and subsequent invitation of relevant suppliers as well as ensuring maximum competition. It can as well lead to better understanding of the market.…

    • 639 Words
    • 2 Pages
    Good Essays

Related Topics