Challenges of Implementing E-Procurement in State Corporation-A Case Study of Kenya Ports Authority

Abstract

Despite government initiative for public organization to adopt E-procurement, the process has been slowly adopted among many public organizations. E-procurement as a practice if implemented can lead to efficiency, transparency, reduction in costs among state corporations in Kenya. Its slow realization raises questions as to what challenges State Corporation face. This underlined the need to carry out a study on challenges facing its implementation. Like other public institutions, Kenya Ports Authority has not fully adopted E- procurement and therefore continues to miss the many benefits that accrue after totally embracing E-procurement systems. The specific objective therefore for this study is to investigate whether organization factors, management support, technical and environmental factors hinder implementation of E-procurement. Stratified random sampling method will be used. The study targeted about 100 employees working in a supplies and procurement related field. A modified likert scale questionnaire will be developed and was divided into three parts. A pilot study was carried out to refine the instrument before the final presentation of this proposal. The quality and consistency of the survey was further being assessed using Cronbach's alpha. Data analysis will be performed on a PC computer using Statistical Package for Social Science (SPSS Version 22) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated will be presented in form of graphs, charts and tables. The response rate was 78.9% and the general reliability Cronbach Alpha was 0.752. Majority of the respondents were in middle management representing 40%. Majority of the respondents held a bachelor's degree. The correlation between the independent variable and dependent variable was 0.768, 0.646, o.776 and 0.773 for organizational factors, lack of management support, technical factors and environmental factors respectively. From the research findings, the study concluded all the independent variables studied have significant effect on challenges of implementing e-procurement as indicated by the strong coefficient of correlation and a p-value which is less than 0.05.The overall effect of the analyzed factors was very high as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than 0.05 (5%) is an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This implies that the studied independent variables organizational factor, lack of management support, technical factor and environmental factor have significant effect on challenges of implementing e-procurement in State Corporations in Kenya.