Effect of electronic tendering on supply chain performance of the county government of Homa-bay, Kenya

Abstract

Electronic tendering is the use of electronic method to conduct procurement functions which entail tendering process. It is rapidly supporting organizational structure transformation and coordination of the business relationships. In Kenya, statistics show that out of 100 organizations implementing electronic tendering, 25% fail in the same. There is thus a challenge still encountered despite the developments in electronic tendering. In addition, there are very few studies conducted with regard to the electronic tendering. The study therefore sought to establish effects of electronic tendering on supply chain performance of the county government of Homa-Bay, Kenya. The study was based on the theories of disruptive innovation, and technology acceptance. A correlational research design was adopted. Target population of the study was 400 staff based on the 10 departments of the county government of HomaBay. Simple random sampling was used to sample 196 respondents while 30 questionnaires were piloted which were excluded from the main study to iron out any ambiguities, tested and purged using the SPSS. Cronbach Alpha technique for reliability with threshold of 0.705 indicated that the instrument is reliable and, content and construct validity confirmed that the instrument was also valid. Descriptive and inferential statistics were used to analyzed quantitative data while verbatim reports and transcriptions were used to analyze qualitative data. The study revealed that electronic tendering had positive and significant effect on supply chain performance and accounted for significant variance, (β=.809, R2=.654, p=.000). These findings imply that electronic tendering has a positive and significant effect on supply chain performance. The study recommends that the county Government carries out electronic tendering awareness to enhance the understanding and practices and thereby improve supply chain performance.