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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
organization at UNWFP?
iv. How does the organization policy affect adoption of e-procurement in an
organization at UNWFP?
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
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
Open and Closed Ended
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
Open and Closed Ended
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
Source: Author (2019)
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
Source: Author (2019)
The above data was presented using a chart as shown below.
Figure 4.2 Gender of the Respondents
Source: Author (2019)
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
Category Frequency Percentage
Up to 5 Years 39 61
6 – 10 Years 13 20
11 – 15 Years 10 16
Over 16 Years 2 3
Total 128 100
Source: Author (2019)
The above data on length of service was presented using figure 4.3
Figure 4.3 Length of Service
Source: Author (2019)
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
Source: Author (2019)
Figure 4.4 Highest Level of Education
Source: Author (2019)
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
Category Frequency Percentage
Yes 58 91
No 6 9
Total 64 100
Source: Author (2019)
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.
Source: Author (2019)
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
Category Frequency Percentage
Very Great 17 24
Great 22 35
Average 12 17
No Effect 13 24
Total 64 100
Source: Author (2019)
Figure 4.6 Rating the effect of cost on adoption of e-procurement in an
organization
Source: Author (2019)
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
Category Frequency Percentage
Yes 47 73
No 17 27
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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
Category Frequency Percentage
Very Great 17 26
Great 14 22
Average 13 20
Low 11 17
No Effect 9 15
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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
Category Frequency Percentage
Yes 63 98
No 1 2
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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
Category Frequency Percentage
Very Great 24 35
Great 15 22
Average 12 19
Low 9 15
No Affect 7 9
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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.
Category Frequency Percentage
Yes 50 78
No 14 22
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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
Category Frequency Percentage
Very Great 19 28
Great 16 24
Average 11 20
Low 10 17
No Effect 8 11
Total 64 100
Source: Author (2019)
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
Source: Author (2019)
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.
4.3.3 Employee Training
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
4.3.4 Management Support
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.
4.3.5 Organization Policy
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.
5.4.2 Employee Training
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.
5.4.3 Management Support
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.
5.4.4 Organization Policy
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
organization at UNWFP?
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?
Very Great Extent { }
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?
Very Great Extent { }
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?
Very Great Extent { }
Great Extent { }
Average Extent { }
Low Extent { }
No Effect { }
Briefly explain