ELECTRONIC PROCUREMENT PRACTICES AND PERFORMANCE OF PRIVATE UNIVERSITIES IN NAIROBI CITY COUNTY, KENYA

Annette Wangui Ng’ang’a, Dr. Anthony Osoro

Abstract


E-procurement is a method of doing business with other businesses that involves using the internet to identify new suppliers, make purchases, make payments, and communicate with vendors. In Kenya, more than half of private universities procurement processes are carried out manually, these process are costly, slow, and inefficient and data storage and retrieval is poor. The general objective of the study was to examine electronic procurement practices and performance of private universities in Nairobi City County, Kenya.  The study specifically focused on effect of e-sourcing and e-invoicing on and performance of private universities in Nairobi City County, Kenya. The study was guided by grey system theory and and diffusion of innovation theory. This study adopted a descriptive research design.  The study targeted 29 private universities in Nairobi County. The unit of observation was the staff involved in the procurement process which are 58 procurement staff, 58 accounts and 58 store managers.   The study used census due to the small sample. The study was conducted using primary data which was collected using questionnaires. The pilot study was conducted with 17 staff which is 10% of the sample size. Validity was tested using content and construct validity. Cronbach’s Alpha was used to assess internal consistency of the questionnaire.  The reliability threshold was 0.7 and any item with a lesser value were discarded or changed. Data was analyzed using SPSS Version 28. Descriptive statistics included frequency, percentage, and mean. Inferential statistics included correlation and regression. Findings were tabulated. Correlation analysis showed strong positive relationships between e-procurement practices and university performance, with e-invoicing (r=0.847, p=0.000) having the highest impact. Regression analysis confirmed that e-invoicing (B=0.354, p=0.000) was the most significant predictor, followed by e-sourcing (B=0.303, p=0.000). The model explained 81.4% (R²=0.814) of university performance variation. The study concludes that e-procurement enhances procurement efficiency, cost savings, transparency, and supplier relationships. It recommends strengthening digital procurement systems, enhancing supplier participation, integrating mobile payments into e-invoicing, and training procurement staff and suppliers to maximize efficiency and performance in private universities.

Key Words: Electronic Procurement Practices, E-Sourcing, E-Invoicing, Performance of Private Universities 


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References


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