Critical Factors for Successful Implementation of E-procurement in the Kenyan Public Sector

Abstract

E-procurement can be defined as the usage of information and communication technology in performing all procurement process stages through the internet. It is aimed at ensuring transparency, efficiency as well as accountability in procurement. However, unlike the private sector, the Kenyan public sector has not been successful in implementing e-procurement. E-procurement has also not been able to decrease the corruption problem in Kenyan public sector procurement. This research was aimed at identifying critical factors which can ensure successful implementation of e-procurement in Kenyan public sector organisations. The study adopted the exploratory research approach. A stratified sampling method was used to select a population sample of 12 parastatals and 2 government ministries which had 140 respondents. 110 questionnaires were filled and returned – a 79% response which was adequate for data analysis and interpretation. Data analysis was conducted using frequencies, percentages and mean scores while multiple regression analysis obtained using SPSS was used in testing the hypothesis regarding the critical factors’ influence on successful e-procurement implementation. The R square values were 0.828 for managerial factors, 0.878 for system factors and 0.930 for stakeholder factors. The three models reach statistical significance (p < 0.0005). In order to contribute the dependent variable (implementation level), the beta values are 0.472 for managerial factors making them the strongest contributor followed by 0.375 for stakeholder factors and 0.230 for system factors. The research recommends Kenyan public organisations’ top management to support e-procurement implementation and provide adequate resources for successful e-procurement implementation. There should also be proper data encryption, training programs for supply chain personnel and proper IT infrastructure set up. Kenyan public organisations should have a perfect connection with their business partners and suppliers and have an appropriate e-procurement implementation strategy with proper mechanisms for measuring, evaluating and controlling e-procurement implementation. Organisational systems should be engineered to be highly compatible with current e-procurement systems while adequate resources should be availed by the Kenyan government and top management in Kenyan public organisations for effective e-procurement implementation.