Effect of Electronic Procurement on Performance of United Nations Agencies in Nairobi: A Study of Selected UN Agencies in Nairobi

Abstract

The purpose of this study was to examine the effect of Electronic Procurement (EProcurement) on the performance of the procurement function of UN Agencies in Kenya. The study sought to answer the following research questions: What is the influence of etendering on performance of UN Agencies in Nairobi? What is the influence of eauctioning on performance of UN Agencies in Nairobi? What is the influence of einvoicing on performance of UN Agencies in Nairobi? What is the influence of e-sourcing on performance of in UN Agencies in Nairobi? It is hoped the result of this study will enable the Agencies to increase their competitiveness. The study used exploratory research design seeking to unveil the effect that E-procurement has on organizational performance of UN Agencies in Kenya, more specifically in UNICEF, WFP, UNSOA and UNON. Primary data was collected by use of semi-structured questionnaires that were self-administered to the respondents. Secondary data was collected by use of journal publications, government reports and UN reports. The target population was drawn from UN Agencies in Nairobi. From the population of procurement managers and staff of the department, the researcher purposively selected 15 respondents from each agency, thus giving sample total of 60 respondents. Data was analysed using SPSS version 2.0. The analysed data was interpreted and presented in frequency tables, bar charts, graphs and pie charts. Regression analysis was done so as to test the relationship between the independent variables and dependent variables. The study found that there exists a positive association of e-sourcing to performance of UN Agencies in Nairobi. This positive association suggests that when one increases, performance of UN Agencies in Nairobi increases.The study concludes that E-tendering, E-auctioning, E-invoicing and E-sourcing are statistically significant and influences performance of UN Agencies in Nairobi. The study findings reveal that majority of the respondents indicated that e-tendering process influences performance of procurement function in the organization to a great extent. Majority of the respondents were neutral as to whether e-auctioning process influences performance of procurement function in the organization. Majority of procurement officers agreed to statements that: E-auctions provide buyers and sellers an open environment. The respondents agreed to a great extent that e-invoicing process influences performance of procurement function in the organization. Specifically, majority of procurement officers strongly agreed to statements that: Through the reduction in use of papers it offers environmental benefits. Through the process of esourcing there has been timely delivery of goods and services to user departments are statements regarding e-sourcing process and performance of UN Agencies in Nairobi. The study recommends that UN Agencies in Nairobi should use a joint policy in the establishment of similar systems of selecting and issuing tenders as a standard procedure to ensure high levels of performance. UN Agencies in Nairobi should be encouraged to use electronic reverse Auctions as an e-sourcing tool to achieve greater savings, and also the greater transparency. The study recommends that all UN Agencies in Nairobi should automate the practice of invoicing so as to promote transparency and record management since it will be easier to track records or identify payments to be made to suppliers. There is need to conduct a similar study in other organizations in an attempt to compare the findings. There is also need to conduct a study on the challenges facing implementation of e-procurement in organizations