E-procurement adoption and supply chain performance among commercial banks in Nairobi, Kenya

Abstract

The purpose of this study was to establish the effect of e-procurement adoption on supply chain performance among commercial banks in Nairobi. In order to fill this gap, the study sought answers to the following two important questions: what is the extent of e-procurement adoption among commercial banks in Nairobi? What is the relationship between e- procurement adoption and supply chain performance among commercial banks in Nairobi? The results of the research have been conducted and interpreted with a view of developing a better understanding of the relationship of eprocurement adoption on supply chain performance of commercial banks. This study took the form of a descriptive research design and data was collected through a structured questionnaire from procurement managers of commercial banks in Nairobi. Frequencies, percentages, mean scores and regression analysis were used to analyze the data. The study revealed that majority of the commercial banks in Nairobi, Kenya have adopted e-procurement with the following e-procurement practices: online advertisement of tenders, receiving online submission of proposals for the tenders, and short listing suppliers online among others.Finally, e-procurement adoption explains 86.7 % of supply chain performance among commercial banks in Nairobi. The study recommends that commercial banks in Nairobi need to incorporate all the e-procurement activities into the system; they need to find out ways of encouraging employees to make use of e-procurement systems as well as find ways of addressing the factors that are critical to the success of e-procurement. This will enable them to improve adoption of e-procurement.The study also recommends that commercial banks in Nairobi should link their suppliers though the e-procurement website so as to improve product and service delivery. It will also be important to conduct a comparative study to establish the similarities and differences.