E-procurement implementation and supply chain integration among large scale manufacturing firms in Nairobi, Kenya

Abstract

The purpose of this study was to establish the effect of e-procurement implementation and business integration among large scale manufacturing firms in Nairobi. In order to fill this gap the study sought answers to the following three important questions: what is the extent of e-procurement implementation among large scale manufacturing firms in Nairobi? What are the barriers of e- procurement implementation among large manufacturing firms in Nairobi? And what is the impact of e-procurement implementation on supply chain integration among large scale manufacturing firms in Nairobi? This study took the form of a descriptive research design and data was collected through a structured questionnaire from supply chain managers of large scale manufacturing firms in Nairobi. Frequencies and percentages, factor analysis and regression analysis were used to analyse the data. 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-procurement implementation were revealed and they include: getting users to accept the system; lack of internal integration of functions; resistance from suppliers; lack of willingness from other stakeholders and lack of enough finances to support the system implementation. Finally, e-procurement implementation explains 57% of supply chain integration among large scale manufacturing firms in Nairobi. The study recommends 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.