E-procurement implementation and transaction cost among non-governmental organisations in Kenya

Abstract

This study examined e-procurement implementation and transaction cost among the Non-governmental organizations in Kenya. More specifically, it sought to know the effect of e-procurement implementation on transaction costs in the NGO world. The objectives of the study were: To determine the value of implementation of e-procurement in non-governmental organizations in Kenya; to establish the challenges involved in the implementation of e-procurement in non-governmental organizations in Kenya; and to establish the relationship between implementation of e-procurement and transaction cost in non-governmental organizations in Kenya. A survey was employed where the respondents were selected from the different NGOS. A sample size of 100 NGOs was selected from a population of 7,083 registered by the government of Kenya. The response rate was 97%. The respondents were randomly selected. Both qualitative and quantitative methods of data analysis were used. Descriptive statistics and regression analysis were employed to find out the relationships between the variables of interest. The findings of the study indicated that implementation of e-procurement had an impact on the transaction cost. It reduces the various costs of the procurement process and therefore NGOs are encouraged to adopt e-procurement in order to experience these reduced transaction costs. Future studies are suggested to focus on limitations of e-procurement and their impact on the efficiency process; the use of e-procurement for organization’s internal audit analysis and keeping the organizations’ standards in check.