Buyer/Supplier Relationship: A Factor Influencing E-Procurement Performance

Abstract

The objective of the study was to investigate the role of buyer/supplier collaboration strategy on the performance of state Corporations in Kenya. In doing this, the study adopted the e-technology perspective theory of (Lee, 2003). The theory explains how the use e-collaboration allows customers and suppliers to increase coordination through the internet in terms of inventory management; demand management and production planning.The study used a cross-sectional survey research design. Both qualitative and quantitative research methodologies were used in the study. The study population of this study comprised of the ICT and Procurement managers at all the 190 state corporations in Kenya comprising of a total of 380 respondents. Since the population was highly heterogeneous, a cluster sampling was used to select 380 respondents from 190 state corporations. Primary data was collected using a questionnaire covering the role of E-procurement in state corporation performance. The questionnaire contained both structured and unstructured questions. Secondary data was gathered from existing credible and recognized source. Quantitative data was analyzed by employing descriptive statistics and inferential analysis using statistical package for social science (SPSS) together with simple graphics analysis, descriptive statistics form the basis of virtually every quantitative analysis to data). Correlation analysis was used to establish the relationship between the independent and dependent variables. The positive (H1) hypothesis testing was done at 5% level of significance and SPSS was used for this purpose. The data was then presented using frequency distribution tables, bar charts and pie charts for easier understanding. Procurement performance in the state corporations was regressed against the variable of the role of buyer/supplier collaboration strategy. The study established that, buyer/supplier collaboration strategy of the procurement process have positive relationship with procurement performance in State Corporation. It also revealed that, there is a significant positive relationship between the components of e-procurement strategy buyer- supplier collaboration process with the procurement performance. The study recommended that Suppliers to be so open and consider radically differing service solutions as being central to their competitive advantage and see their ability to partner and establish a relationship with the client setting them apart from their competitors.

Keywords: Buyer/supplier relationship: A factor influencing e-procurement performance


Article Review Status: Published

Pages: 1-20 (Download PDF)

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