Relationship between E-procurement Adoption and Partnership Practice in Tea Firms

Abstract

Many firms in the world and more so in Kenya have registered dismal supply chain performance in terms of partner relationship within supply chain system because of the inefficient and unsustainable procurement procedures as witnessed in the Kenyan public sector. The purpose of this study was to establish the influence of e-procurement adoption on supply chain partnership practice. The objectives of the study were to establish the influence of e-procurement adoption on partnership practice in tea firms in Kenya. The study was guided mainly by Diffusion of Innovation theory and Resource Based Theory. The research design adopted during the study was explanatory. From 12 tea firms a target population of 4200 respondents was set. Purposive and proportional sampling was used to select a sample size of 365 respondents among the staff, top management and suppliers. Questionnaires and structured interview schedule was used to collect data. Pearson product moment correlation coefficient and linear regression were used to test strength of the relationship between variables. E-procurement adoption positively influence partnership practices (r=.548). The e-procurement adoption positively influenced the partnership practices. From the regression model, R2 was .300 and showing that e-procurement adoption account for 30% partnership practice. The electronic procurement adoption in tea firms has built partner relationships with suppliers, benefited in the reduction of cost, lead time and stable supply source and adopted the supply chain management practices. It has enhanced trust and partner relationship with suppliers using electronic procurement. The e-procurement adoption was found to make firm partner relationships improve supply chain performance. The tea firms should provide information to all their suppliers on inventory levels of products, product compositions and raw materials purchased from them, always and promptly without bias and also execute adequate debriefing of suppliers to enhance partner relationships after every evaluation.