Information and Communication Technology and Procurement Performance in Star Rated Hotels in Nairobi, Kenya

Abstract

In order to meet today’s operating challenges, managers are turning to ICT to enhance the services for clients, businesses and visitors, and improve internal efficiencies by lowering costs and increasing productivity. ICT in procurement significantly influence the success of a company. The priority of ICT is to provide support in the creation of process efficiency and cost / expenditure transparency as well as achieving reductions in the purchasing price. The aim of this study was to investigate the relationship between ICT and procurement performance in star rated hotels in Nairobi, Kenya. The research study adopted a descriptive research design. The target population for this study included the 100 star- rated hotels in Nairobi Kenya. The researcher used a questionnaire with a Likert scale as the primary data collection instrument. Descriptive statistics analysis were employed. The organised data was interpreted in terms of averages and standard deviation to objectives using assistance of computer packages. The study conducted a Pearson’s product moment correlation analysis to establish the relationship between the study variables. Tables and other graphical presentations such as bar charts were utilized. Regression analysis was also conducted to show how ICT affect procurement performance in star rated hotels in Nairobi. The study concludes that that the star rated hotels make use of computers and internet. The various aspects of use of ICT that affect the procurement performance of star rated hotels in Nairobi include placing of the contract and and advertising as well as tender evaluation, tender aggregation and tender specification. The study concludes that ICT tools offer a good strategy within an organization to achieve strategic goals of customer satisfaction and profitability through cost management. Supplier appraisal, supplier network and integrating brand and procurement management processes affect procurement performance in the star rated hotels in Nairobi as well as supplier selection and development plan, involvement in the early stages of brand building, information flow (documentation, reporting and communication), supplier performance tracking and assessment and developing the suppliers. The study recommends that the organizations should be sensitive of the ever changing business environment that dictates the competitive environment they operate in. For the star rated hotels to realize the optimum performance in the procurement, there is need to embrace the use of modern technology in procurement processes. The study recommends the star rated hotels need to employ procurement staffs who have attained professional qualification. The study was faced with several challenges. The respondents approached were likely to be reluctant in giving information fearing that the information sought would be used to intimidate them or print a negative image about them or their firms, a challenge in securing the respondent precious time considering their busy schedules and there are not many researches done on the area of ICT in procurement performance of star rated hotels in Nairobi owing to different objectives and methodologies (and study designs) of previous studies, the data was not in the right format or specific enough to aid in this study.