factors affecting adoption of e-procurement in

FACTORS AFFECTING ADOPTION OF E-PROCUREMENT IN

ORGANIZATIONS: A CASE STUDY OF UNWFP

PRESENTED BY

ABDIKADIR HASSAN DAKANE

A RESEARCH PROJECT SUBMITED TO THE SCHOOL OF MANAGEMENT

AND LEADERSHIP IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF BACHELOR OF MANAGEMENT AND LEADERSHIP

TO THE MANAGEMENT UNIVERSITY OF AFRICA

AUGUST 2019

DECLARATION

This project is my original work and has not been presented for a degree in any other

University

Signature…………………………… Date ………………………

ABDIKADIR HASSAN DAKANE

ODEL-BML/10/00484/3/2016

This project has been submitted for examination with my approval as University

Supervisor

Signature…………………………… Date ………………………

The Management University of Africa

iii

DEDICATION

I dedicate this research project to my family whose support both informational and

emotional ensured that this project is a success.

iv

ACKNOWLEDGEMENT

First, I would like to express my sincere gratitude to my supervisor for the guidance,

contribution, and assistance in writing and completion of this research project. To my

lecturers for all the efforts they put in making this project a success and to my friends, I

thank you for the information that you gave me, it really added value for this work. I

would also like to acknowledge the UNWFP for the opportunity granted to conduct this

research in their organization. I am also grateful to The Management University of Africa

for giving me an opportunity to pursue my education at the institution.

v

ABSTRACT

The focus of this study was to determine factors affecting adoption of e-procurement in

an organization with respect to United Nations World Food Program. The objectives of

the study were to find out how cost, employee training, management support and

organization policy affect adoption of e-procurement in an organization. The study will

be significant to the UNWFP and future researchers. The originality of this research lies

in its attempt to fill the significant gaps. The study adopted a descriptive research design

and used stratified random sampling method. The target population for this study was the

workforce in the organization who included top management, middle management, and

support staff with a target population of 140 employees. The study used stratified

sampling technique to select a sample size of 70 employees that involved dividing the

target population into strata. The researcher used secondary information sources that the

researcher acquired through reading relevant literature. The data collection instrument

was the questionnaire. Data was analyzed through frequency and descriptive statistics and

presented with inform of graphs and pie charts. From the study findings, 91% of the

respondents agreed that cost affects adoption of e-procurement whereas 73% of

respondent indicated that employee training affects career growth for women to

leadership positions. Majority, 98% agreed that management support affects adoption of

e-procurement whereas 81% indicated that level of education does affect the adoption of

e-procurement. Lastly, 78% agreed that organization policy affects adoption of e-

procurement. This study suggested that a similar study should be done on the challenges

affecting performance of procurement function in Non-governmental organizations. The

study should focus on different variables not covered in the current study such legislative

policies.

vi

TABLE OF CONTENTS

DECLARATION.............................................................. Error! Bookmark not defined.

DEDICATION.................................................................. Error! Bookmark not defined.

ACKNOWLEDGEMENT ............................................... Error! Bookmark not defined.

ABSTRACT ...................................................................... Error! Bookmark not defined.

TABLE OF CONTENTS ................................................ Error! Bookmark not defined.

LIST OF TABLES ........................................................... Error! Bookmark not defined.

LIST OF FIGURES ......................................................... Error! Bookmark not defined.

DEFINITION OF TERMS.............................................. Error! Bookmark not defined.

1.0 Introduction .................................................................. Error! Bookmark not defined.

1.1 Background of the Study ............................................. Error! Bookmark not defined.

1.2 Statement of the Problem ...............................................................................................5

1.3 Objectives ......................................................................................................................6

1.4 Research Questions ........................................................................................................6

1.5 Significance of the study ................................................................................................7

1.6 Scope of the Study .........................................................................................................7

1.7 Chapter Summary ..........................................................................................................7

CHAPTER TWO ...............................................................................................................9

LITERATURE REVIEW .................................................................................................9

2.0 Introduction ....................................................................................................................9

2.1 Theoretical Review ........................................................................................................9

2.2Empirical Literature Review .........................................................................................12

2.3 Summary and Research Gaps ...................................... Error! Bookmark not defined.

2.4 Conceptual Framework ................................................ Error! Bookmark not defined.

2.5 Operationalization of Variables ................................... Error! Bookmark not defined.

2.6 Chapter Summary ........................................................................................................20

CHAPTER THREE .........................................................................................................21

RESEARCH DESIGN AND METHODOLOGY .........................................................21

3.0 Introduction ..................................................................................................................21

3.1 Research Design...........................................................................................................21

vii

3.2 Target Population .........................................................................................................21

3.3 Sample and Sampling Technique.................................................................................22

3.4 Instruments ...................................................................................................................22

3.5 Pilot Study ....................................................................................................................22

3.5.1 Validity .....................................................................................................................22

3.5.2 Reliability ..................................................................................................................23

3.6 Data Collection Procedure ...........................................................................................23

3.6.1 Questionnaires...........................................................................................................23

3.7 Data Analysis and Presentation ...................................................................................24

3.8 Ethical Consideration ...................................................................................................24

3.9 Chapter Summary ........................................................................................................25

CHAPTER FOUR

RESEARCH FINDINGS AND DISCUSSION ..............................................................26

4.1 Introduction ..................................................................................................................26

4.2 Presentation of Findings ..............................................................................................26

4.3 Summary of Data Analysis ..........................................................................................39

CHAPTER FIVE .............................................................................................................41

SUMMARY, RECOMMENDATIONS AND CONCLUSIONS .................................41

5.1 Introduction ..................................................................................................................41

5.2 Summary of Findings ...................................................................................................41

5.3 Conclusions ..................................................................................................................42

5.4 Recommendations ........................................................................................................43

5.5 Suggestions for Further Research ................................................................................43

REFERENCES .................................................................................................................45

APPENDIX I: QUESTIONNAIRE .................................................................................. i

viii

LIST OF TABLES

Table 4.1 Response Rate ...................................................................................................26

Table 4.2 Gender of the Respondents ...............................................................................27

Table 4.3 Length of Service ..............................................................................................28

Table 4.4 Highest Level of Education ...............................................................................29

Table 4.5 Whether cost affects adoption of e-procurement ..............................................30

Table 4.6 Rating the effect of cost on adoption of e-procurement ....................................31

Table 4.7 Whether employee training affects adoption of e-procurement ........................32

Table 4.8 Rating the effect of employee training on adoption of e-procurement .............33

Table 4.9 Whether management support affects adoption of e-procurement ...................34

Table 4.10 Rating the effect of management support on adoption of e-procurement .......35

Table 4.11 Whether organization policy affects adoption of e-procurement. ...................36

Table 4.112 Rating the effect of organization policy on adoption of e-procurement .......35

ix

LIST OF FIGURES

Figure 4.1 Response Rate..................................................................................................26

Figure 4.2 Gender of the Respondents ..............................................................................27

Figure 4.3 Length of Service.............................................................................................28

Figure 4.4 Highest Level of Education ............................................................................29

Figure 4.5 Whether cost affect adoption of e-procurement .............................................30

Figure 4.6 Rating the effect of costs on adoption of e-procurement ................................31

Figure 4.7 Whether employee training affects adoption of e-procurement ......................32

Figure 4.9 Rating the effect of employee training on adoption of e-procurement ............34

Figure 4.9 Whether management support affects adoption of e-procurement ..................35

Figure 4.10 Rating the effect of management support on adoption of e-procurement .....36

Figure 4.11 Whether organization policy affects adoption of e-procurement ..................37

Figure 4.12 Rating the effect of organization policy on adoption of e-procurement ........38

x

LIST OF ACRONYNMS AND ABBREVIATIONS

AFDB African Development Bank

B2B Business 2 Business

DFID Department for International Development

EU European Union

GOK Government of Kenya

FAO Food and Agriculture Organization

IAEA International Atomic Energy Agency

ICT Information and Communication Technologies

IFAD International Fund for Agricultural Development

ILO International Labor Organization

IT Information Technology

JICA Japan International Cooperation Agency

NGO Non-governmental Organizations

SCM Supply Chain Management

SMEs Small and Medium Enterprises

TAM Technology Acceptance Model

UNCTAD United Nations Conference on Trade and Development

UNEP United Nations Environment Program

UNESCO United Nations Educational, Scientific and Cultural Organization

UNHCR United Nations Human

UNICEF United Nations Children's Fund

UNWFP United Nations World Food Program

USA United States of America

USAID United States AID

WW World War

WHO World Health Organization

WFP World Food Program

xi

OPERATION DEFINITION OF TERMS

Cost This is the amount of money that is spent on the production

or creation of a good or service. Cost does not include a

mark-up for profit.

Employee Training This is a program that is designed to increase the technical

skills, knowledge, efficiency and value creation to do any

specific job in a much better way. It increases the needed

skill set and helps in development of an employee as

well as overall growth of the organization.

Management Support This is defined as the willingness of top management to

promote the intended course of action; including the

championing of innovative ideas and providing the

resources people require taking entrepreneurial actions.

Organization Policy This is a standing plan that establishes general guidelines

for decision-making. It sets boundaries around decisions

including those that can be made and eliminating those that

cannot.

CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter deals with investigations on the factors influencing adoption of e-

procurement in an organization with respect to UNWFP. The chapter focuses on the

background of the study, statement of the problem, objectives of the study, research

questions, and justification of the study, scope, and limitations of the study.

1.1 Background to the Study

Procurement, in any organization accounts for substantial portion of firm’s resources

and time. In the wake of the competitive environment nowadays, it is important for

every organization to maintain an effective and efficient procurement to cut procuring

materials and services at the right price, quality, and time. For a long time,

organizations, both private and public, have used paper work to carry out the

procurement process (Hartzel, 2008).

E-procurement has recently gained dominance in many organizations worldwide due to

technological advancements, which have made business operations easier, faster, and

more efficient in today’s competitive global village. It encompasses all activities

involved in obtaining goods and services and managing their inflow into an organization

toward the end user through the internet (Lee, 2009). It also refers to the use of internet-

based system to carry out individual or all stages of procurement process, including

search, sourcing, negotiation, ordering, receipt, and post-purchase review. This was been

facilitated by the growth in information and communication technology that has led to

electronic commerce, commonly referred to as e-commerce. The growth in e-commerce

has been significant in the adoption of new supply chain-related technology and

applications by organizations globally. Like other functions embraced by e-commerce,

the procurement function has positively been impacted with a predicted growth in e-

procurement applications covering both transactional buying and strategic sourcing

activities (Greunen, 2010).

2

E-procurement is becoming more popular because of the sensitivity of jobs that it can. In

any organization, procurement is the hot spot for corruption and inefficiencies. Its ability

in improving efficiency and transparency is making it popular but also a system that the

governments want to embrace in line with their procurement policies. Many leading

companies worldwide have verified the benefits of e-procurement, and e- Procurement is

a significant tactic in most companies’ e-Business strategies (Kumar, 2008). The

consensus is that e-Procurement benefits organizations with respect to procurement cost

and process efficiency associated with procurement activities. This is due to web-based

e-Procurement solutions can support four major B2B tasks in organizations: search,

processing, monitoring and control, and coordination (Shaw, 2012).

Supply chain management (SCM) has exploded as a management’s major concern over

the last years, since with the exploitation of new Information and Communication

Technologies (ICT) and in particular, of Internet the potential to revolutionize,

streamline, and enhance supply chain operations has flourished (Patterson, 2003).

Specifically, e-procurement is an important element of e-business operational excellence

for large firms (Barua, 2001). E-procurement is any ICT designed to facilitate the

acquisition of goods by a commercial or a governmental organization over the Internet

(Davila, 2013).

E-procurement ICT include e-procurement software, B2B auctions, B2B market

exchanges and purchasing consortia that aim to automate workflows, consolidate and

leverage organizational spending power and identify new sourcing opportunities online.

Future advances would extend these ICT to create collaborative SCM tools (Cagliano,

2007). E-procurement’s benefits include lower administration costs, inventories and

purchasing prices; shorter order-cycle time; enhanced cooperation with suppliers,

performance, and multi-chain operations (Sigala, 2003).

Although these advantages may suggest a rapid migration from traditional to e-based

procurement models, some organizations are slow in adopting e-procurement. Actually,

current studies revealed that this tremendous expected growth rate has been revised

downwards (Lancioni, 2003). However, prior studies on e-procurement have primarily

3

focused on the evaluation of its benefits (Gupta, 2008) or its adoption in specific

industries, mainly in NGOs (Galle, 2003). Moreover, although the ICT and Internet

adoption has been extensively examined in hospitality (Siguaw, 2012), research

investigating the level and factors affecting the adoption and use of specific e-

procurement ICT by foodservice companies has been minimal.

The donor and Non-Governmental Organizations (NGO) community is very active in

Kenya, with a wide range of operations including work in infrastructure, health,

education, and policy development. Kenya is also a procurement base for regional relief

and development activities in Somalia, Sudan, and Rwanda. Multilaterals such as the

World Bank group, the African Development Bank (AFDB), and the European Union

(EU) generally operate through and in conjunction with the GOK. They operate at

different levels and through different procurement mechanisms. Bilaterals such as

USAID, DFID, and JICA operate in conjunction with the GOK and have different

procurement methods, usually project-based or delegated through institutions such as

Crown Agents. UN Agencies generally have their own procurement network, as do large

NGOs such as CARE. UNICEF, UNHCR, and HABITAT all have large procurement

offices in Nairobi (Sigala, 2003) larger local NGOs usually function with funds received

from donors, and procurement done according to the donor’s stipulations. NGOs procure

vast amounts of goods, services, and works to support their operations and interventions.

One UN agency alone procures about KSh. 500 million worth of goods in Kenya

annually. Procurement policies vary greatly among the donors and NGOs. NGOs

normally stipulate the use of local sub-contractors where possible for the procurement of

works and services. This, however, is not a condition for disqualification if it does not

occur.

The United Nations (UN) is an intergovernmental organization founded in 1945 to

promote peace, order, and international cooperation amongst nations following the

devastating effects of WWII. The UN has headquarters in Manhattan, New York USA

and currently has 193 sovereign members with equal representation in its General

Assembly. The UN operates over 20 agencies to fulfill its mandate. Among the best-

4

known agencies are WHO, FAO, ILO, UNEP, UNICEF, UNESCO, UNHCR, IFAD,

IAEA, WFP and the World Bank Group. Two of the agencies namely UNEP and

HABITAT operate at the UN Office based in Nairobi (Sigala, 2003).

UN is a public organization that gets its funding from member states (funded by

taxpayers’ money) with the US being the largest contributor accounting for 22% of its

annual budget of $ 8 billion. Like other public organizations’ procurement approval, all

UN procurement activities fall under the authority of the UN Charter. UN Financial

Regulations approved by the UN General Assembly regulate UN procurement activities.

Under the guidance of UN Secretary General, the Principal Officer of UN, are

procurement staffs that are responsible for purchase of goods and services for use by the

secretariat and field agencies. Financial regulations are detailed promulgations outlining

how the procurement is undertaken. For instance, Financial Regulation 5.12 stipulates

that the UN procure high quality goods, services, and works that meet the criteria of

competitive prices and delivery within the period required in order to achieve the

mandates of user organization. In order to streamline and standardize procurement

procedures, UN has outlined the following best value for money procurement principle

to guide procurement staff: when procuring goods and services, procurement staff

should ensure that optimal outcome has been achieved taking into consideration the

cardinal factors of costs, benefits, risks, and resources available (Davila, 2013).

For many years in the UN system, the procurement function has been a mere

transaction-oriented back office function that more often than not was fragmented and

managed in a haphazard manner. However, things took a turn for the better between

2014 and 2015 as total procurement volume of UN and its agencies took a significant

leap to $ 18 billion from $ 11 billion two years earlier. It dawned and became evident

that procurement needed to be recognized and assigned prominence in order to manage

such large financial commitments. It is significant to note that out of the total UN

procurement budget, over $ 1 billion representing 13% were goods and services for use

in Africa with Kenya taking a staggering 40% of Africa’s total in 2015.

5

According to Hawkinget (2008), procurement of goods and services represents the

single largest cost item for any given enterprise in revenue a company earns on the sale

of a product more capital employed on the procurement of materials and services to

support the business's operations than on all other expense items combined. In recent

past, there has been increased adoption and usage e-procurement in major procurement

functions of United Nations Agencies. The adoption of e-procurement in UN Agencies

is affected by several factors, besides that of integrating the buyer in the procurement

system within the organization in a bid to procure the right products at the right price.

The potential of e-procurement is evaluated in a number of studies (Aberdeen, 2011).

According to these studies, e-procurement enables companies to decentralize operational

procurement processes and centralize strategic procurement processes because of the

higher supply chain transparency provided by e-procurement systems. However, there is

limited empirical literature on the impact of e-procurement on performance of UN

Agencies.

1.2 Problem Statement

Adoption of e-procurement plays a significant role in improving the effectiveness and

efficiency of organizations’ procurement functions. Procurement department could

contribute tremendously to the organization’s vision and the bottom line if it adopts

proper technologies. Technology adoption helps procurement department to buy all that

is required in the organization at the right time, price, place, quantity and quality for all

departments and users within the organization. An organization could derive great

benefits from e- procurement and thus be able to serve their customers (both internal and

external) better. On the other hand, if the procurement department were inefficient in its

acquisition of goods and services or even works, other departments would be adversely

affected. Adoption of e-procurement could make it easier, faster, and less expensive to

purchase the goods and services, which the organization needs.

In the United Nations Conference on Trade and Development (UNCTAD, 2003) report,

which is a background paper on development and issues on e-commerce and information

and communications technologies, the report indicated that effective e-procurement

6

execution when buying goods and services in companies yields savings up to 30 percent

and decline of transaction expenses by up to 25 percent. Steinberg’s (2003) did a study

on the implementation of e-procurement in state corporations in Britain. He agreed that,

although different governments are calling for public sector agencies to embrace e-

procurement, there do not seem to be a streamlined execution of e-procurement, and the

success rates in its implementation have been less than dramatic, as backed by the

assertion that “Government e-Procurement projects have been notoriously

unsuccessful”. A study by Stein (2009) found that adaptation of information technology

within state agencies has had an impact on the enhancement of the provision of services

by 40%, and as such, the necessity to improve the effectiveness of service provision by

the adoption of a well- coordinated automated operation. The execution of the

procurement function, which is important to the procurement of materials necessary for

the provision of services, has been hindered by the use of traditional, exhausting

techniques.

Korir (2009) looked into the obstacles that the Kenyan public sector among a few

government ministries had to deal with in the execution of e-procurement. The

researcher discovered poor IT systems, insufficient financing, lack of political will to be

the major obstacles. Productivity of most public institutions in Kenya is very low,

although they continuously take in an extreme share of the budget and most of it goes to

procurement that requires automation. Other studies done on e-procurement at UN

agencies such as those by Orori (2011) and Wario (2015) among others and they

attained their objectives. This study was general as it focused on UN agencies thus a

major knowledge gap on adoption of e-procurement at UNWFP. It is hence against this

background this study meant to determine factors affecting adoption of e-procurement in

an organization.

1.3 Objective of the Study

1.3.1 General Objective

The general objective of the study was to determine factors influencing adoption of e-

procurement in an organization with respect to UNWFP.

7

1.3.2 Specific Objectives

i. To assess how cost affects adoption of e-procurement in an organization at

UNWFP

ii. To determine how employee training affect adoption of e-procurement in an

organization at UNWFP.

iii. To find out the effect of management support on adoption of e-procurement in an

organization at UNWFP

iv. To determine the effect of organization policy on adoption of e-procurement in

an organization at UNWFP

1.4 Research Questions

i. How does the cost affect adoption of e-procurement in an organization at

UNWFP?

ii. How does employee training affect family adoption of e-procurement in an

organization at UNWFP?

iii. To what extent does management support affect adoption of e-procurement in an


iv. How does the organization policy affect adoption of e-procurement in an


1.5 Justification of the Study

The research information will provide knowledge to the policymakers at the UN

agencies to design and adopt of e-procurement in an organization for an enhanced and

effective procurement. The study will help in appreciating the role of e- procurement in

UN Agencies as a way of achieving organizational performance. In addition, it will help

to ascertain the need, and to re-orient the strategic choices of the agencies in order to

turn them into sustainable entities while delivering on their core mandate of offering

services to the public through technology adoption. Furthermore, findings from the

study will equally enable managers to formulate e-procurement policies that will ensure

a positive impact on strategic performance of organizations/agencies.

8

The study will also be of value to academicians and other researchers in the field of

procurement in general and e-procurement in particular. They may use the results of this

study as a basis for further research in the form of secondary data to enhance future

studies in support of digitization. In addition, the results of the study may facilitate the

work of individual researchers to identify gaps in the current research and carry out

further in-depth research in those areas.

1.6 Scope of the Study

The scope of this study was limited to the four factors namely; cost, employee training

management support and organization policy on adoption of e-procurement in an

organization with reference to UNWFP. The target population was 140 employees and a

sample population of 70 employees that was 50% of the target population. The time

span for the study was the months of April 2019 to July 2019.

1.7 Chapter Summary

This chapter entails the background of the topic under study, statement of the problem,

objectives the study and the research questions and lastly the scope of the study that

describes where the study location of the study, the target population and the time span.

The study focused on the factors affecting adoption of e-procurement in an organization.

9

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter outlines the empirical works, research gaps to be filled, summary and the

theoretical context of the research. The researcher has also reviewed literature that

related to and consistent with the objectives of the study. There is explanation of the

existing theories and analysis of the past-established knowledge that will outline the

organized understanding of the major issues and past studies in the related field of study.

2.1 Theoretical Literature Review

Theoretical literature establishes the philosophies that already exist, their relationship

with study variables and help in development of study questions to be asked and tested

(Rowan, 2009).

2.1.1 Technology Acceptance Theory

Some studies used technology acceptance model or theory of planned behavior in order

to understand the adoption of new technology in public sector setting (Davis, 2012).

Davis developed the Technology Acceptance Model and is one of the most popular

research models to predict its use and acceptance of information systems and technology

by individual users

TAM has been widely studied and verified by different studies that examine the

individual technology acceptance behavior in different information systems constructs.

In TAM model, there are two factors perceived usefulness and perceived ease of use is

relevant in computer use behaviors. Davis defines perceived usefulness as the

prospective user’s subjective probability that using a specific application system will

enhance his or her job or life performance. Perceive ease of use (EOU) can be defined as

the degree to which the prospective user expects the target system to be free of effort.

According to TAM, ease of use and perceived usefulness are the most important

determinants of actual system use. These two factors influenced the external variables.

The main external factors usually manifested are social factors, cultural factors and

10

political factors. Social factors include language, skills, and facilitating conditions.

Political factors are mainly the impact of using technology in politics and political crisis.

The attitude to use is concerned with the user’s evaluation of the desirability of

employing a particular information system application. Behavioral intention is the

measure of the likelihood of a person employing the application. Although those models

suggest perceived usefulness and perceived ease of use as critical antecedents to users'

technology adoption process, those models are not specific on the implementation of a

new technology such as e-procurement system. Our theoretical framework draws on

Croom (2007) that is useful to understand key challenges of e-procurement

implementation in government sector.

2.1.2 Innovation Diffusion Theory

The Innovation diffusion theory is a model grounded in business study. Since 1940’s the

social scientists coined the terms diffusion and diffusion theory (Parasuraman, 2010).

This theory provides a framework with which we can make predictions for the period

that is necessary for a technology to be accepted. Diffusion research examines how ideas

can be spread among groups of people. Diffusion goes beyond the two-step flow theory,

centering on the conditions that increase or decrease the likelihood that members of a

given culture will adopt an innovation, a new idea, product or practice. In multi-step

diffusion, the opinion leader still exerts a large influence on the behavior of individuals,

called adopters, but there are also other intermediaries between the media and the

audience's decision-making. One intermediary is the change agent, someone who

encourages an opinion leader to adopt or reject an innovation (Womack, 2009).

Not all individuals adopt innovations in a social system at the same time. Instead, they

tend to adopt in a time sequence, and can be classified into adopter categories based

upon how long it takes them to begin using the new idea. Practically speaking, it's very

useful for a change agent to be able to identify which category certain individuals belong

to, since the short-term goal of most change agents is to facilitate the adoption of an

innovation. Adoption of a new idea is due to human interaction through interpersonal

networks. If the initial adopter of an innovation discusses it with two members of a

11

given social system, and these two become adopters who pass the innovation along to

two peers, and so on, the resulting distribution follows a binomial expansion. Expect

adopter distributions to follow a bell-shaped curve over time. Constructs are the

characteristics of the new technology, the communication networks, and the

characteristics of the adopters. We can see innovation diffusion as a set of four basic

elements: the innovation, the time, the communication process, and the social system.

Here, the concept of a new idea is passed from one member of a social system to

another. Harrington, (2011) redefined a number of constructs for use to examine

individual technology acceptance such as relative advantage, ease of use, image,

compatibility and results demonstrability.

2.1.3 Transaction Cost Theory

Transaction cost theory could serve as a good starting point for the analysis, which

explains why firms and others perform certain tasks by markets (Holland, 2008).

Transaction costs can be divided into coordination costs and transaction risk

(Harrington, 2011). Coordination costs are the direct costs of integrating decisions

between economic activities (such as search and bargaining costs). Transaction risk is

associated with the exposure exploited in the relationship (Handfield, 2013). Uncertainty

and asset specificity are two factors, which increase coordination costs and transaction

risk, respectively (Nolan, 2009). The use of information technology has facilitated the

reduction of coordination costs, which is documented in the literature (Handfield, 2013).

For example, electronic market places, facilitated through IT, reduce the cost of

searching for obtaining information about product offerings and prices. In addition,

collaboration facilitated by information sharing can lower transaction costs (in particular

coordination costs) as companies can thereby reduce supply chain uncertainty and thus

the cost of contracting.

Uncertainty in the context of supply chains and more specifically in manufacturing is

caused by supply uncertainty, demand uncertainty, new product development

uncertainty, and technology uncertainty (Koh, 2006). Hong (2006) classified uncertainty

as primary, competitive, and supplier uncertainty. Primary uncertainty is consistent with

12

Abell (2006) and Nolan (2009) and refers to the “lack of knowledge of states of nature”

(Hong, 2006). Competitive uncertainty arises from the innocent or strategic actions of

potential or actual competitors (Handfield, 2013).

2.2 Empirical Review of Literature

2.2.1 Cost and adoption of e-procurement

According to Bhabatosh (2014) cost is the amount of the expenditure (actual or notional)

incurred on or attributable to a specified thing or activity. It also represents a sacrifice, a

foregoing, or a lease of something of value. The committees on cost concept and

standards of the American Accounting Association supports the view that business cost

is a lease of value for acquisition or creation of economic resources and is measured in

terms of monetary sacrifice involved. For example, the material used for production, the

cost is measured by the amount of money that had been paid to procure the materials.

This is no doubt past or historical cost. Cost is therefore resources sacrificed or forgone

to achieve a specific objective.

According to Courtier, (2007) cost represent money measurements of efforts that a firm

has to take to achieve its objectives. These are to input costs. Input cost influences the

efficiency of production in construction decisions. These costs are divided into fixed

cost incurred by the business even when the plan is idle, total fixed costs including

salary and rent, variable costs, costs that change with change in input and operations for

example wages and electricity. Marginal costs that are incurred when a firm produces an

extra unit of production and total costs that is the sum of the fixed and variable costs.

Opportunity cost is the measurable advantage forgone as result of rejection of alternative

uses of resources, whether of materials or facilities.

This cost does not involve any cash outlay, is done only for the purpose of comparison

in the context of managerial decision, and hence does not find any place in financial

account. Imputed cost is a hypothetical cost, does not involve actual cash outlay, and

consequently does not appear in financial records. Relevant costs appropriate to aid the

making of specific management decision. They are expected future costs that will differ

under alteration. Future variable costs generally become relevant decision context.

13

Service or operation cost is therefore the cost of providing and operating a service or

function costing is usually applied to transport services like distribution service (Wang,

2006).

E-procurement according Liao (2003) is more likely to be beneficial in dispersed supply

chains as it helps coordination. Different actors in supply chains have different power,

legitimacy and urgency to implement e-procurement and e-procurement can have an

effect on trust in supply chain relationships (Klein, 2007). Lack of assistance and the

structural inertia of large organizations in supply chains can be a disincentive to

implement e-business (Zhu, 2006). Different industries show different propensities to e-

procurement adoption, related to existing use of information exchange infrastructures

prior to the advent of the internet.

The greatest benefits of e-business occur when its application is fully integrated

throughout the supply chain (Currie, 2009). Some literature has pointed to the

possibilities of greater integration and collaboration across e-business-supported supply

chains. (Wiley, 2003) E-procurement is more likely to adopt if it is perceived that

suppliers have capability to deal with it; there are difficulties in integrating information

systems across firm boundaries in supply chains if suppliers lack capability.

Budgetary allocation is “the availability of the needed budgets for adoption of e-

procurement”. Indeed, economic costs, lack of technical knowledge and organization

policy are perceived as three of the most important factors that hinder Information

System (IS) growth in many organizations. Cragg et al. (2013) Small Budgetary

allocation express an organization’s capital available for IS investment.

2.2.2 Employee Training and adoption of e-procurement

Employee training is the process or acquiring knowledge and skills through formal or in

formal ways. Skills is an ability to do something well, especially because you have

learned and practiced it. Same way knowledge is the information, skills, and

understanding that you have gained through learning or experience. In military use,

employee training means gaining the physical ability to perform and survive in combat,

14

and learning the many skills needed in a time of war. These include how to use a variety

of weapons, outdoor, survival, skills, and how to survive and capture the enemy among

others (Kwela, 2009).

Scrivens (2009) observed that employee training improves proficiency and enable a

person to qualify for promotion and it is supposed to be continuous exercise. Therefore,

the purpose of employee training is to improve skills, knowledge and change altitude.

This is concerned with improving of skills of employees i.e. both new and old. If

companies are to survive, they must attach the out most importance of employee training

their employee’s sales force. Employee training can thus increase the confidence and

motivation of staff, secondly, it provides recognition, enhance responsibility and

possibility of increased pay and promotion it also gives a feeling of personal satisfaction,

achievement and broad opportunity for career progression. Finally, employee training

helps to improve the ability and quality of staff thus increasing the level of individual

and organization competence.

According to Armstrong (2006) an effective way to enjoy all these advantages, leading

to higher profitability and productivity is through application-based corporate training.

The link between training employees and implementing a performing eProcurement

strategy is an obvious one. Proper training will ensure that workers are well informed

about the concept of eProcurement and this will allow them to work successfully and be

aligned with the company’s overall objectives through a sustainable eProcurement

strategy. For example, high impact scenario-based eLearning courses, gamifications and

simulations represent efficient ways to train employees as this allows them to experience

real work situations and corresponding solutions. In this way, employees commit

themselves and they can easily apply their skills and knowledge directly to their jobs.

For instance, they will be more comfortable to deal with e sourcing or e-catalogues,

which are part of eProcurement processes.

In other cases, the policy may refer comprehensively to the various actions it will take to

ensure that not only regular supply of skills but also high degree of personal motivation

through development opportunities are provided by the company. Objectives of

https://www.procurement-academy.com/procurement-course-catalogue/

15

employee training policy there should be a well-organized employee training and

development described as a systematic organization structure. On the job is the normal

work situation and it uses special simplified tools and equipment. The trainee is not

regarded as partly productive work from the time employee training begins, it has an

advantage of strongly motivating trainees to run since it is not located in the artificial

situation of a classroom. Off the job, training takes place away from normal work and

uses special simplified tools and equipment.

The training is not regarded as partly productive worker from the beginning of the

training center attended by the trainers from several employers or at a college. Special

courses are classified as special education rather than employee training programs.

These are used in number of ways in textbooks. The advantage is that one can select a

place of learning, go over when desire and use machine when it’s convenient. Identify

and define employee-training needs by analyzing corporate team occupation and

individual needs to acquire new skills, work knowledge and to improve existing

competence. Define the learning required. It is necessary to specify as clearly as possible

what skills and knowledge have to be learned and what attitude need to be developed

(Beclein, 2004)

2.2.3 Management Support and adoption of e-procurement

A company may adopt e-technologies as part of its overarching business strategy,

contributing to improving firm performance and increasing competitive advantage. The

strategic use of e-business has been considered in several studies, and how e-business

strategy aligns with the overarching business strategy of a firm. The internet will only

become a powerful source of competitive advantage if it is integrated in firms' overall

strategies (Maher, 2008). The role of IT has evolved from a productivity tool to a

strategic level. An e-business strategy should specify the aims, goals and context of the

application (Youssef, 2011); these choices should be aligned with other organizational

and managerial choices, and integrated with the organization's processes (Hardaker,

2012). These studies suggest that if organizations are being strategic in their e-

16

procurement adoption, they may have a specific e-procurement strategy, and that this

will align with broader organizational strategy.

According to Raymond (2007) lack of financial and technical resources as well as lack

of top management support has become significant barriers for successful adoption of e-

procurement and integration. Adoption of e-procurement implementation requires

substantial financial resources for the system itself, additional hardware, and software to

enhance communication links, and ongoing expenses during usage. Managers today

must lead under new and difficult conditions. The periods for getting things

accomplished are becoming shorter; leaders are expected to get things done on the first

short with second chances being rare; the problems to be resolved through leadership are

complex, ambiguous and multi-dimensional; leaders are expected to be long-term

oriented even while meeting demands for short-term performance results. New

technology often brings behavioral and organizational changes to an organization. This

results in incompatibility of supplier involvement with existing organizational culture,

value, and work practices that occur and become one of the greatest barriers to supplier

involvement success

According to Robbins (2015), a friend-manager will try to make sure that her

relationship with staff is never just about the work. She will look for common and use

those to build rapport with staff. Of course, a friend-manager still needs to manage, to

ensure that work is done, but having rapport makes this task easier. In the best

circumstances, we do things for our friend-manager for the same reason that we do

things for friends: because we like to and want to. A parent-manager will treat staff as if

they were his children. He assumes that it is his responsibility to develop staff in a more

hands-on, even intrusive way. Often, this blurs the boundary between the professional

and the personal, with a parent-manager not only being interested in your work, but in

what you are eating, your goals in life, who you are seeing, etc. The tools that a parent-

manager often uses to manage staff are similar to those used by our own parents: guilt

and tough love.

17

Jeyaraj (2006) found that top management support to be one of the best predictors of

organizational adoption of IS innovations. Top management can stimulate change by

communicating and reinforcing values through an articulated vision for the organization.

Top management support is critical for creating a supportive climate for the adoption of

new technologies (Grover, 2013)

Top management plays an essential role in generating innovations by providing the

appropriate environment, and making decisions that enhance the creation and execution

of knowledge successfully (Storey, 2009). Ideal top management shows a deep

awareness of its followers needs, and provides an incentive, which is a source of

encouragement and motivation for them to innovate and solve problems. Top

management helps employees to address their needs for empowerment, improve

personality, accomplish achievement, and enhance self-efficacy (Ryan, 2013). Many

researchers pointed out that top management plays an important role in organizational

outcomes (Hambrick, 2006). Many other researchers suggested that top management

support plays a key role in influencing the adoption of innovational activities in

organizations.

2.2.4 Organization Policy and adoption of e-procurement

The ICT literature in general (Dewar, 2006) and in the hospitality industry has

demonstrated that larger organizations are more likely to facilitate ICT innovation and

adoption due to their financial capacity, infrastructure and organizational power. By

analogy, it can be claimed that e-purchasing adoption can be influenced by a large firm

size and purchasing workforce. The rationale is that a buying firm with a larger

purchasing unit is more likely to adopt e purchasing, as it has greater information

processing capacity, needs, and organizational power than smaller firms. Moreover, a

buying firm with a large purchasing unit is also more likely to possess the financial, skill

resources and bargaining power to achieve the economies of scale required. Within

hospitality, affiliation with a hotel chain/alliance or consortia is found to positively

affect ICT adoption and use. Small firms also lack in ICT knowledge and technical

skills. OECD (2008) and Walczuch, Van Braven and Lundgren (2000) attributed the

18

failure of European small and medium enterprises (SMEs) to utilize e-commerce to their

lack of e-commerce and Internet knowledge. Because of the obstacles in developing the

necessary skills and technical knowledge, many firms postpone ICT adoption until they

gain sufficient internal expertise. As ICT knowledge of hospitality staff also positively

affects ICT adoption and use (Sigala, 2003), it is claimed that e-procurement adoption

and use by foodservice firms can also be influenced by staff’s knowledge on e-

procurement.

2.3 Summary and Research Gaps

E-Procurement refers to the use of Internet-based (integrated) information and

communication technologies (ICTs) to carry out individual or all stages of the

procurement process including search, sourcing, negotiation, ordering, receipt, and post-

purchase review (Croom, 2007). There are various forms of eProcurement that

concentrate on one or many stages of the procurement process such as e-Tendering, e-

Marketplace, e-Auction/Reverse Auction, and e-Catalogue/Purchasing, eProcurement

can be viewed more broadly as an end-to-end solution that integrates and streamlines

many procurement processes throughout the organization. Although the term “end-to-

end e-Procurement” is popular, industry and academic analysts indicate that this ideal

model is rarely achieved and e-Procurement implementations generally involve a

mixture of different models (Sanda, 2003). E Procurement is the automation of many

procurement processes via electronic systems, especially the Internet. According to

Koorn et al. (2001), there are three types of e-Procurement Systems: Buyer

eProcurement Systems, Seller eProcurement Systems and Online Intermediaries. Some

of the commonly used tools in the public sector are eTendering, e-Request for

Quotation, e-Auctions, e-Catalogues, and eInvoicing. These tools, including complete

marketplace technologies, have been developed by the key players in the e-Procurement

market.

19

2.4 Conceptual Framework

2.5 Operationalization of Variables

Table 2.2 Operationalization of Variables

Variables Indicators Measurement

Cost Production Cost

Marginal Costs

Opportunity Cost

Variable Costs

Open and Closed Ended

Questions

Employee Training Employees

Competencies

Employee Skills

Employee

Qualifications


Questions

Management Support Firm Performance Open and Closed Ended

Cost

Management

Support

Employee

Training

Organization

Policy

E-procurement in an organization

20

Organizational

Outcomes

Effective Leadership

Management Style

Questions

Organization Policy Problem Resolution

Customer Care

Benchmarking

Stakeholder

Involvement


Questions

Source: Author 2019)

2.6 Chapter Summary

The study has reviewed study variables such as cost, employee training, management

support and organization policy and services and has established significant relations in

study variables and e-procurement in an organization. The study selected the past

activities that fall within the objectives of the study; that gave a clear account of all past

theoretical undertakings and this chapter provides a theoretical, empirical, conceptual

framework and the operationalization of variables used in the study. This chapter also

reviewed theories applicable to the study and summarized gaps identified in relation to

the study objectives.

21

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.0 Introduction

Research methodology offers an explanation into what type of research this study is all

about and the components. It also defines the population of the study and the specific

sampling techniques used data analysis and collection methods. The chapter also

includes design, pilot study, validity, reliability and ethical consideration.

3.1 Research Design

This is a general layout that the researcher uses to respond to research questions in a

study. (Orodho, 2005) defines research design as general layout that is used to answer

research questions. This study adopted descriptive research design. According to

(Cooper and Schindler, 2008) descriptive design is a process of finding out, what, where

and how an incident occurred. Descriptive research design is appropriate for studies that

have specific issues and where problems have been defined (Mugenda and Mugenda,

2013). The issue in the study being e- procurement in an organization and are thus

geared to address the essential why, who, when, what, and how questions in the

research. The study sought to describe a situation through the study of variable

relationships. The study describes and defines the subject matter by profiling issues

under study. It also helps the researcher to critically analyze the problem in question

with a view of drawing more detailed and specific information about the subject that can

be useful to the management. Most often than not, it is used as a precursor to more

statistical research as it gives some valuable pointers as to what variables are worth

testing quantitatively.

3.2 Target Population

Cooper (2005) described target population as common set of study units which the

researcher uses to generalize results. Target population is the units that have observable

characteristics that the study uses to generalize the finding. The research study targets

140 employees from UNWFP.

22

3.3 Sample and Sampling Technique

According to Kothari (2009), a sample is defined as subject of a population that has been

selected to reflect or represent characteristics of a population. Cooper (2008) a sample

frame is a set of information used to identify a sample population for statistical

treatment, the sample frames include identifying information on characteristics of the

individual to aid in data analysis and allow for division of frames. Cooper (2008) defines

a sample frame as the set of source materials from which the sample is selected. Their

definition also includes the purpose of sampling frames, which provide a means for

choosing the members of the target population that is interviewed in the research study.

The study uses random sampling technique, which involved dividing the target

population of 140 respondents into strata, and the sample size used was 70 respondents.

They comprised the departments of finance, information technology and procurement.

3.4 Instruments

The researcher used questionnaire to collect data especially primary data as outlined by

Kothari (2009). A questionnaire is an instrument of research that contains questions on

the variables of the study. The researcher used questionnaires because they are more

efficient and an economical tool for descriptive and preventive research for the sample

size that chosen. The study used secondary data for literature review; these materials

used are books, journals, reports, journals, and magazine and internet literature.

3.5 Pilot Study

The pilot study aims at establishing the validity and reliability of instruments of research

(Cooper, 2008). The study adopted content validity to measure the degree to which data

was collected using questionnaires. The pilot testing was conducted using the

questionnaire on some selected respondents. The pilot was done through random

sampling.

3.5.1 Validity

Validity is the correctness and capacity of interpretations founded on the study results.

The researcher conducted a pilot study to validate the study questionnaire. Gillham

23

(2008) explains that understanding and expertise covered by the test items that represent

a larger area of same dynamic.

3.5.2 Reliability

Reliability test of research instruments is one that consistently produces the expected

results. Kothari (2009) points out that instrument reliability refers to the level of internal

consistency or the stability of the measuring devices. A questionnaire has the same

expectation-that is reliably does what it is designed to do every time is used. If the

questionnaire is consistent over time and yields similar results each time it is used, it is

reliable. The researcher used the questionnaire and administered it to colleagues in the

institution. The researcher took 2 weeks and then repeated the questionnaire to the same

respondents.

3.6 Data Collection Procedure

Primary data was presented the actual information that was collected for the purpose of

the study and questionnaires were used for this purpose that was self-administered and

was hand delivered to the target respondents with the questionnaire having it picked by

the researcher for data analysis. The study will use secondary data for literature review.

3.6.1 Questionnaires

Questionnaires are a list of standard questions prepared to fit a certain inquiry. The

questionnaire contained both closed ended questions so as to facilitate structured

responses for the rating of various attributes whilst open ended questions which will

help to provide additional respondents information. According to Orodho (2005)

questionnaires measures likelihood of straight, even and blunt answers. This can be

superior to an interview because social communion operates strongly in a face of

situation that may prevent the person from expressing what he feels to be socially or

professionally unacceptable views. The study will use likert-type format of

questionnaires.

24

3.7 Data Analysis and Presentation

Descriptive statistics was used for data analysis. This entailed means, averages, and

proportions in the study. The data analysis tools were simple tabulations and

presentations of the report using spreadsheets. The data was presented using tables,

charts, and graphs. Data was first coded then organized into concepts from which

generalization was made of the entire population. Data was then tabulated and

frequencies calculated on each variable under study and interpretations made from the

field findings. Percentages were then calculated and interpretation made.

3.8 Ethical Consideration

The researcher undertook various steps to ensure that the study adheres to research

ethical standards. Research introduction letter was obtained from the participating

respondents and Management University of Africa.

3.8.1 Informed Consent

The researcher ensured that the principle of informed consent is properly applied and the

researcher explained to the respondents the expectations of the study and they were

asked to ask questions where there is a misunderstanding to avoid hang-ups while

responding to questionnaires.

3.8.2 Voluntary participation

The researcher sought consent from respondents before administering the questionnaires

to the target population and the respondents were sent a consent form in order to

participate in the research study.

3.8.3 Confidentiality

The researcher granted the respondents of utmost confidentiality of the responses that

they were provided and apart from the findings being meant for an examinable project at

Management University. That data shall not be availed to any other party.

25

3.8.4 Privacy

The researcher accorded respondents the right to privacy when participating in the

research. Any participant can join the study and neither the researcher nor the study

design nor the publication of the results would ever identify any participant in the study.

The researcher had to abide to various guidelines for human subject research to protect

the study participants who chose to participate in the research study. The rights of the

people who participated in the study was protected.

3.9 Chapter Summary

The chapter outlines the methodology that was adopted for this study and an explanation

into what type of research this study is all about. It also defines the population of the

study and the specific sampling techniques that was used for data analysis and data

collection methods, study design, pilot study, validity, reliability and ethical

consideration.

26

CHAPTER FOUR

RESEARCH FINDINGS AND DISCUSSION

4.1 Introduction

This chapter undertakes to analyze and discuss the data collected from the respondents

in relation to research objectives and quantitative analysis and qualitative analysis. The

quantitative data analyzed was presented in using tables, charts and through percentages

while qualitative analysis was presented through content analysis.

4.2 Presentation of Findings

4.2.1 Response Rate

Table 4.1 Response Rate

Category Number Percentage

Response 64 91

Non Response 6 9

Total 70 100

Source: Author (2019)

The above data was presented using a chart as show below

Figure 4.1 Response Rate


27

From the analysis in table 4.1 and figure 4.1 indicates the response rate for the actual

representation of the population. Out of 70 questionnaires distributed 64 were returned,

that is 84% of the total population and 6 which is 9% were not returned.

4.2.2 Gender Analysis

The study identified gender of the respondents involved in the study. The data obtained

from the respondents is as summarized in table 4.2

Table 4.2 Gender of the Respondents

Category Frequency Percentage

Male 53 83

Female 11 17

Total 64 100


The above data was presented using a chart as shown below.

Figure 4.2 Gender of the Respondents


Analysis from the table 4.2 and figure 4.2 shows that 83% of the respondents were male

while 17% were female. This implies that the organization has a male dominated

workforce.

28

4.2.3 Length of Service

The study sough to find out the respondents as per Length of Service involved in the

study. The information obtained from the respondents is as presented in table 4.3 and

figure 4.3

Table 4.3 Length of Service


Up to 5 Years 39 61

6 – 10 Years 13 20

11 – 15 Years 10 16

Over 16 Years 2 3

Total 128 100


The above data on length of service was presented using figure 4.3

Figure 4.3 Length of Service


Table 4.3 and figure 4.3 indicate the response of the Length of Service of the

respondents, which filled the questionnaires. Up to 5 years was 61%, 6-10 years was

20%, 11-15 years was 16% and over 16 years was 3%

29

4.2.4 Highest Level of Qualification

The study sought to establish the highest educational qualification of the respondents

involved in the study. The information obtained from the respondents is as summarized

and presented in table 4.5 and figure 4.5.

Table 4.4 Highest Level of Education

Category Number Percentage

Secondary 2 2

College 27 43

University 35 55

Total 64 100


Figure 4.4 Highest Level of Education


Table 4.4 and figure 4.4 indicated that 55% of the respondents were graduates, 43% of

respondents had college education while 2% had secondary education. This indicates

therefore that most of the respondents were learned, hence well informed of the

organization expectations.

30

4.2.5 Cost

The researcher evaluated how the cost affected the adoption of e-procurement in an

organization. The information obtained from the respondents is summarized in table 4.6.

Table 4.5 Whether cost affects adoption of e-procurement in an organization


Yes 58 91

No 6 9

Total 64 100


The above information on whether cost affects adoption of e-procurement in an

organization as shown in figure 4.5 below

Figure 4.5 Whether cost affect adoption of e-procurement in an organization.


Table 4.5 and figure 4.5 shows the response on the effect of cost on adoption of e-

procurement in an organization . The study established that 91% respondents indicated

that cost affect adoption of e-procurement in an organization while 9% indicated that

there is no effect. In conclusion, it was emphasized that cost influences adoption of e-

procurement in an organization.

31

4.2.6 Cost

The study sought the rating of the effect of cost on the adoption of e-procurement in an

organization. The information obtained from the respondents is summarized in table 4.7.

Table 4.6 Rating the effect of cost on adoption of e-procurement in an organization


Very Great 17 24

Great 22 35

Average 12 17

No Effect 13 24

Total 64 100


Figure 4.6 Rating the effect of cost on adoption of e-procurement in an

organization


From the data collected, analyzed, and presented above, the influence of cost on the

adoption of e-procurement in an organization is shown. 24% of respondents indicated

the extent as very great, 35% indicated that the effect is great, 17% indicated it as

average whereas only 24% indicated that there is no effect.

32

4.2.7 Employee Training

The study sought to find out whether employee training affects adoption of e-

procurement in an organization. The information obtained from the respondents is as

summarized in table 4.7

Table 4.7 Whether employee training affects adoption of e-procurement in an

organization


Yes 47 73

No 17 27

Total 64 100


The above information whether employee training affects adoption of e-procurement in

an organization was presented in the figure 4.8.

Figure 4.7 Whether employee training affects Adoption of e-procurement in an

organization


The data collected, analyzed and presented above on the influence of employee training

on adoption of e-procurement in an organization is shown. It was established that 73%

respondents indicated that employee training affect adoption of e-procurement in an

33

organization while 27% indicated that there is no effect. Based on the findings, it can be

inferred that employee training is a key factor affecting adoption of e-procurement in an

organization.

4.2.8 Rating of the Effect of Employee Training

The respondents were asked to rate the employee training on adoption of e-procurement

in an organization. The information obtained from the respondents is as summarized in

table 4.8

Table 4.8 Rating the effect of employee training on adoption of e-procurement in

an organization


Very Great 17 26

Great 14 22

Average 13 20

Low 11 17

No Effect 9 15

Total 64 100


The above data on the rating of the effect of employee training on adoption of e-

procurement in an organization was presented graphically as follows

34

Figure 4.9 Rating the Effect of employee training on adoption of e-procurement in

an organization


The data collected and analyzed on the rating of how employee training influences

adoption of e-procurement in an organization in presented. It was revealed from the

study by majority (28%) of the respondents indicated that the influence of training is

very great, 20% indicated that the effect is average, 24% indicated that it is great, 17%

indicated that it is low, whereas only 11% indicated that there is no effect.

4.2.9 Management Support

The study to examine whether management support affect adoption of e-procurement in

an organization. The data obtained from the respondents is as summarized in table 4.9.

Table 4.9 Whether management support affects Adoption of e-procurement in an

organization


Yes 63 98

No 1 2

Total 64 100


The above data on whether management support affect adoption of e-procurement in an

organization was presented using figure 4.9

35

Figure 4.9 Whether management support affects adoption of e-procurement in an

organization


The data collected and analyzed on the how management support affects adoption of e-

procurement in an organization in presented. It was established that 98% respondents

indicated that management support affect adoption of e-procurement in an organization

while 2% indicated that there is no effect. Thus, management support is a key factor

affecting adoption of e-procurement in an organization.

4.2.10: Rating the Effect of Management support

On extent to which leadership affects the adoption of e-procurement in an organization,

the information obtained from the respondents was summarized in table 4.9

Table 4.10 Rating the effect of management support on adoption of e-procurement

in an organization


Very Great 24 35

Great 15 22

Average 12 19

Low 9 15

No Affect 7 9

Total 64 100


The above data on the rating of the effect of management support on adoption of e-

procurement in an organization was presented graphically as show in figure 4.10

36

Figure 4.10 Rating the Effect of management support on adoption of e-

procurement in an organization


The data collected and analyzed on the rating of how management support influences

adoption of e-procurement in an organization in presented. It was revealed from the

study by majority (35%) of the respondents indicated that the influence of management

support is very great, 19% indicated that the effect is average, 22% indicated that it is

great; 15% indicated that it is low, whereas only 9% indicated that there is no affect.

4.2.11 Organization Policy

The study to examine whether organization policy affects adoption of e-procurement in

an organization . The data obtained from the respondents is as summarized in table 4.11.

Table 4.11 Whether organization policy affects adoption of e-procurement in an

organization.


Yes 50 78

No 14 22

Total 64 100


37

The above data on whether organization policy affects adoption of e-procurement

in an organization as presented using figure 4.11

Figure 4.11 Whether Organization policy affects adoption of e-procurement in an

organization


From the table 4.11 and figure 4.11, 78% of the respondents indicated that organization

policy affects adoption of e-procurement in an organization while 22% indicated that

there is no effect. Based on this finding it can be inferred that organization policy is a

key factor affecting adoption of e-procurement in an organization .

4.2.12: Rating the Effect of Organization policy

On the extent to which organization policy on adoption of e-procurement in an

organization. The information obtained from the respondents was summarized in table

4.12

38

Table 4.12 Rating the Effect of organization policy on adoption of e-procurement in

an organization


Very Great 19 28

Great 16 24

Average 11 20

Low 10 17

No Effect 8 11

Total 64 100


The above data on the rating of the effect of organization policy on adoption of e-

procurement in an organization was presented graphically as show in figure 4.12

Figure 4.12 Rating the Effect of organization policy on adoption of e-procurement

in an organization


The data collected and analyzed on the rating of how organization policy influences

adoption of e-procurement in an organization in presented .It was revealed from the

study by majority (28%) of the respondents indicated that the influence of management

39

support is very great, 20% indicated that the effect is average, 24% indicated that it is

great, 17% indicated that it is low, whereas only 11% indicated that there is no effect.

4.3 Summary of Data Analysis

4.3.1 General Information

Out of 70 questionnaires distributed 64 were returned, that is 91% of the total population

and 9which is 13% were not returned. Gender response shows that 83% of the

respondents were male while 17% were Female. Length of doing Business indicated that

up to 5 years was 61%, 6-10 years was 20%, 11-15 years was 16% and lastly over 16

years was 3%. Fourteen percent of respondents were graduates, 65% of respondents had

college education while 17% had secondary education. 4% of respondents had primary

education.

4.3.2 Cost

It was established that 91% respondents indicated that cost affects adoption of e-

procurement in an organization while 9% indicated that there is no effect. It was found

that 29% of respondents indicated that that cost affects adoption of e-procurement in an

organization largely. However, some 11% of respondents indicated that that cost affects

adoption of e-procurement in an organization at a low extent.


The study established that 73% respondents indicated that employee training affect

adoption of e-procurement in an organization while 27% indicated that there is no effect.

Employee training effect on adoption of e-procurement in an organization was felt to be

very great by 35% respondents. 22% indicated that the effect is great, 19% indicated that

it is average; 15% indicated that it is low, whereas only 9% indicated that there is no

affect. This implies that employee training plays a significant role when handling pricing

strategy within the organization.

40


The study revealed the effect of management support on adoption of e-procurement in

an organization. It was established that 98% respondents indicated that management

support affects adoption of e-procurement in an organization while 2% indicated that

there is no effect. 35% respondents cited management support effect to be very great.

22% indicated that the effect is great, 19% indicated that it is average; 15% indicated

that it is low, whereas only 9% indicated that there is no affect. This implies that pricing

strategies incorporated by small and medium enterprises should adhere to government

regulations across the board.


The study established that 78% respondents indicated that organization policy affects

adoption of e-procurement in an organization while 22% indicated that there is no

effect. Organization policy effect on adoption of e-procurement in an organization was

indicated that to be very great by 35% respondents. 22% indicated that the effect is

great, 19% indicated that it is average; 15% indicated that it is low, whereas only 9%

indicated that there is no affect. From the analysis, it is evident that small and medium

enterprises rely on shift in organization policy and supply to set their pricing target

based on competitive forces shaping the demand structure.

41

CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSIONS

5.1 Introduction

This chapter is comprised of summary and conclusion of the study based on the findings

detailed in chapter four. It also provides recommendations based on the study’s

conclusions which can therefore lead to appropriate mechanisms to combat pricing

strategies for small medium enterprises.

5.2 Summary of Findings

5.2.1 How does cost affect adoption of e-procurement in an organization?

It was established that 89% respondents indicated that cost affect adoption of e-

procurement in an organization while 11% indicated that there is no effect. From the

study it was concluded that cost had an effect on adoption of e-procurement in an

organization.

5.2.2 How does employee training affect adoption of e-procurement in an

organization?

The study established that 82% respondents indicated that employee training was a

factor affecting adoption of e-procurement in an organization while 18% indicated that

there is no effect. From the study, it was concluded that employee training had an effect

on adoption of e-procurement in an organization .

5.2.3 In what ways do management support affect adoption of e-procurement in

an organization ?

The study established that 67% respondents indicated that management support affect

efficiency of adoption of e-procurement in an organization while 33% indicated that

there is no effect. Management support effect was cited to be very great by 35%

respondents. 22% indicated that the effect is great, 19% indicated that it is average; 15%

indicated that it is low, whereas only 9% indicated that there is no affect. From the study

it was concluded that management support had an effect on adoption of e-procurement in

an organization.

42

5.2.4 How does organization policy affect adoption of e-procurement in an

organization?

The study established that 81% respondents indicated that organization policy was a

factor affecting adoption of e-procurement in an organization while 19% indicated that

there is no effect. Organization policy effect on adoption of e-procurement in an

organization was indicated that to be very great by 35% respondents. 22% indicated that

the effect is great, 19% indicated that it is average; 15% indicated that it is low, whereas

only 9% indicated that there is no affect.

5.3 Conclusions

The researcher concluded that cost had an effect on adoption of e-procurement in an

organization. Relevant costs are appropriate to aid the making of specific management

decision. They are expected future costs that will differ under alteration. Future variable

costs generally become relevant decision context. Service or operation cost is therefore

the cost of providing and operating a service or function costing is usually applied to

transport services like distribution service.

It was also apparent that employee training affects adoption of e-procurement in an

organization. Objectives of employee training policy there should be a well-organized

employee training and development described as a systematic organization structure. On

the job is the normal work situation and it uses special simplified tools and equipment.

The trainee is not regarded as partly productive work from the time employee training

begins, it has an advantage of strongly motivating trainees to run since it is not located

in the artificial situation of a classroom.

Management support affects adoption of e-procurement in an organization. A friend-

manager will try to make sure that her relationship with staff is never just about the work.

She will look for common and use those to build rapport with staff. Of course, a friend-

manager still needs to manage, to ensure that work is done, but having rapport makes this

task easier. In the best circumstances, we do things for our friend-manager for the same

reason that we do things for friends: because we like to and want to. A parent-manager

will treat staff as if they were his children.

43

The researcher concluded that organization policy had an effect on adoption of e-

procurement in an organization. An organization policy that is required should be

obtained by the organization to ensure that the rule and procedures are right. An

organization should have better policies which enhance the effectiveness of the

implementation of projects in the organization.

5.4 Recommendations

5.4.1 Cost

The study recommended that it’s important to know how cost behaves over period of

time in the organization which should be minimized at all cost. This will help in

devising strategies which will ensure the operation cost goes down and the purchasing

objectives are achieved.


To ensure that the employee are competent, training should be enhanced to improve on

the performance of the employees through taking them to seminars or holding

workshops for them to learn more on the necessary operations pertaining the well-being

of the organization.


This is an all-round activity whereby if the management does not fully support

organizational activities and initiatives it automatically fails, therefore it is

recommended that the organization to fully support the implementation of just in time

technique in the organization as it will bring efficiency in the procurement process in the

organization. Without their support the organization cannot achieve its goal of meeting

the needs of the clients at an appropriate time.


Organization policies are an important factor to the organization and it was

recommended that the management should formulate new and sound policies on

effective adoption of just in time technique and should be immediately communicated to

the members of staff in the organization.

44

5.5 Suggestions for Further Research

This study suggested that a similar study should be done on the challenges affecting

performance of procurement function in Non-governmental organizations. The study

should focus on different variables not covered in the current study such legislative

policies.

45

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i

APPENDIX I

QUESTIONNAIRE

Kindly answer the following questions as accurately as possible. Your individual

response is strictly confidential and anonymous. The answers were used for academic

purposes only. Please tick in the box { } corresponding to whatever your choice is or

state briefly where necessary.

SECTION A: PERSONAL INFORMATION

1. Gender

Male { } Female { }

2. Age Bracket

20-30 Years { }

30-40 Years { }

49-50 Years { }

Above 50 Years { }

3. Highest Level Of Education

Secondary Level { }

Tertiary/College Level { }

University Level { }

4. Years of Sevice

Less than 5 Years { }

6 - 10 Years { }

11 - 15 Years { }

Above 16 Years { }

SECTION 2: COST

5. Does cost affect adoption of e-procurement in an organization at UNWFP?

Yes { }

No { }

ii

6. How do you rate the effects of cost on adoption of e-procurement in an


Very Great Extent { }

Great Extent { }

Average Extent { }

Low Extent { }

No Effect { }

Briefly explain

………………………………………………………………………………...….…

………………………………………………………………………………....……

………………………………………………………………………………………

SECTION 3: EMPLOYEE TRAINING

7. Does employee training affect adoption of e-procurement in an organization at

UNWFP?

Yes { }

No { }

8. How do you rate the effects of employee training on adoption of e-procurement in

an organization at UNWFP?


Great Extent { }

Average Extent { }

Low Extent { }

No Effect { }

Please Explain

………………………………………………………………………………...….…

………………………………………………………………………………....……

………………………………………………………………………………………

iii

SECTION 4: MANAGEMENT SUPPORT

9. Does management support affect adoption of e-procurement in an organization at

UNWFP?

Yes { }

No { }

10. How do you rate the effects of management support on adoption of e-procurement

in an organization at UNWFP?


Great Extent { }

Average Extent { }

Low Extent { }

No Effect { }

Briefly explain

………………………………………………………………………………...….…

………………………………………………………………………………....……

………………………………………………………………………………………

SECTION 5: ORGANIZATION POLICY

11. Does organization policy affect adoption of e-procurement in an organization at

UNWFP?

Yes { }

No { }

12. How do you rate the effect of organization policy on adoption of e-procurement in

an organization at UNWFP?


Great Extent { }

Average Extent { }

Low Extent { }

No Effect { }

Briefly explain

iv

………………………………………………………………………………...….…

………………………………………………………………………………....……

………………………………………………………………………………………

Thank you for your Cooperation

factors affecting adoption of e-procurement in

Documents