EFFECT OF COMMUNICATION ON EMPLOYEE PERFORMANCE IN AN ORGANIZATION

(ACASE STUDY OF KISII COUNTY)

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF ENTREPRENEURSHIP, TECHNOLOGY,

LEADERSHIP AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTERS OF SCIENCE IN PROCUREMENT AND LOGISTICS OF JOMO KENYATTA UNIVERSITY OF
AGRICULTURE AND TECHNOLOGY

SEPTEMBER, 2020

Acknowledgement
I would like to express my sincere gratitude to the following people for their support in my endeavors to
accomplish this work. First, my supervisor Mr. Edward Mayogifor his tireless expert advice throughout
the period of drafting this work. Second, the management of Jomo Kenyatta University of Agriculture
and Technology for providing me with the necessary environment, tools and equipment that facilitated
effective accomplishment of my work.

ABSTRACT
This study is to assess effect of e-procurement on the performance of agribusiness and using Sasini PLC
as a case study. The general objective of the study was;

To evaluate the effect of e-procurement on the supply chain performance of agribusiness in Kenya
taking Sasini PLC as my case study. Specific objectives were; to establish how electronic tendering makes
it easier to make purchases hence fastening agribusiness supply chain performance in Sasini PLC. To
establish how electronic sourcing encourages faster operations on agribusiness supply chain
performance in Sasini PLC. To investigate how enterprise resource planning (ERP) affects agribusiness
supply chain performance in Sasini PLC. The study adopted a descriptive case study design to conduct
the study. A case study design was appropriate for the study as it enabled the researcher to conduct an
in-depth investigation on the subject matter at hand (Mugenda and Mugenda, 1999).The target
population for the study was 100 employees working in Sasini PLC. The study utilized a sample size of
30% of the targeted population as recommended by Mugenda Mugenda, (1999) who recommends a
sample size of 10% to 30% of the target population to be appropriate for a descriptive case study design.
The study used questionnaires to collect data from the respondents. Best and Khan (2011) noted that,
questionnaires enable the researcher to explain the purpose of the study and give meaning of terms
that may not be clear. The questionnaire was used to elicit data on the effect of e-procurement on the
performance of agribusiness. The researcher conducted a pre-study before the main study to determine
the reliability of the study instrument. The researcher used the provided feedback on the content and
wording of questions to drop, add, or modify the questions for the main study. The researcher relied on
the expertise of the JKUAT supervisor in judgment to determine the validity of the instruments. The
study instruments was edited for completeness and consistency. Quantitative data was analyzed and
presented descriptively using frequency tables while qualitative data was presented in narration form
according to the study objectives.The study made conclusions and recommendation thereafter.
Abbreviations and Acronyms

EDI: The Electronic Data Interchange System

ET: Electronic Tendering

ES: Electronic Sourcing

EP: Electronic Payment

EPOS: Electronic Point Of Sale

ITT: Invitation to Tender.

RFP: Request for Purchase.

Definition of Terms

Service- is a transaction in which no physical goods are transferred from the seller to the buyer. (Josey-
Bass, 2003)
Delivery- refers to the process of transporting goods from a source location to a predefined destination,
(Haig, M. 2006)

E-procurement-according toBaily, P. J. H. (2008), e-procurement is the business-to-business or business-

to-consumer or business-to-government purchase and sale of supplies, work, and services through the
Internet as well as other information and networking systems, such as electronic data interchange and
enterprise resource planning.

CHAPTER ONE

INTRODUCTION

This chapter contains the background information, statement of the problem, objectives of the study,
research questions, significance of the study, scope of the study, and limitations of the study.

1.1 Background of the Study

According to Lysons K, (2002) E-procurement is the combined use of information and communication
technology through electronic means to enhance internal and external business management processes.
E-procurement can be business to business purchase and sale of supplies and services over the internet.
The emergence of internet technologies has changed the way the service businesses and organizations
operate. According to Nelson (2001), the majority of organizational spending consists of purchasing. In
order to reduce the total spending on purchasing process, internet technologies are used and e-
procurement has become popular to implement in the latest era by both production sand organizations.
E-procurement is named as the revolution due to its potential to reduce the total costs of acquisition
(Essig 2001). The empirical and theoretical economic literature on business indicates that as the number
of competitors increase the market price is significantly lower. Competitive environment significantly
lowers prices in the market, thus, the success of e-commerce systems highly depends on the increases in
the number of vendors that participate to market. So, the implementation of e-commerce has some
restrictions like technology adoption and usage of e-commerce systems by marketers.Gunasekaran
(2008) argues that agriculture can influence the e-procurement through its business transactions and
affect the business environment. Robinson et.al (2005) also argues that e-procurement helps
agribusiness to save money and provide a more accountable, more effective and faster way to manage
business. E-procurement is a method to reduce costs, lower inventory levels, shortening the ordering
process, prepare organizations for increased technological collaboration and lower the product prices.
Therefore, E-procurement has been viewed as the value added application of commerce solutions to
facilitate, integrate and streamline the entire commercial process, all the way from initial strategy
development through to contract placement and payments. While the drivers and potential benefits and
transformations of e-procurement are well documented, the ongoing impact of these changes in
organizations is less well understood. Most organizations seek to improve marketing processes and
reduce market costs.

1.2Statement of the Problem

Organizations have been performing poorly as a result of not implementing e-procurement in their
procurement operations. This has resulted to poor customer service, poor production lines, and poor
quality of the company’s produce thus resulting to high customer turnover, stiff competition in the
business environment and poor relationship with the business partners; The management of these
institutions has to reach their suppliers and customers physically in order to make sales or purchases.
This problem can therefore be mitigated by implementing e-procurement that will eliminate the need of
physical contact and enable the applications of techniques such as Just In Time (JIT), Enterprise
Resources Planning (ERP) and Material Requirement Planning (MRP). Thus this study was set to find out
effects of e-procurement on the agribusiness supply chain using a case study of Sasini PLC.

1.3Purpose of the Study

The study was to assess effects of e-procurement on agribusiness supply chain performance and taking
Sasini PLC as the case study.

1.4 Objectives of the Study

The general objective of the study was;

To evaluate the effect of e-procurement on the supply chain performance of agribusiness in Kenya
taking Sasini PLC as my case study.

1.4.1Specific objectives.

The study was guided by the following specific objectives:

i. To establish how electronic tendering makes it easier to make purchases hence fastening
agribusiness supply chain performance in Sasini PLC.

ii. To establish how electronic sourcing encourages faster operations on agribusiness supply chain
performance in Sasini PLC.

iii. To investigate howenterprise resource planning (ERP) affects agribusiness supply chain
performance in Sasini PLC.

.
1.5 Research Questions

1 What are the effects of e-tendering on agribusiness supply chain performance in Sasini PLC?

2 How does electronic sourcing encourage faster operations of e-procurement in Sasini PLC?

3 How does electronic sourcing encourage faster operations of e-procurement in Sasini PLC?

1.6Significance of the Study

The results of this study was intended to impact managers and other policy makers to adopt e-
procurement to enhance effective supply chain operations, It will help the upcoming youth
entrepreneurs in identifying the strengths and weakness of their operations. The Future researchers will
use the research information to identify gaps as this project will form a data bank for future reference
and it will help the government in decision making as far as e-procurement is concerned.

1.7Scope of the Study

The study covered Sasini PLC and was conducted on the employees of the same company to elicit the
effects of e-procurement on agribusiness supply chain performance in Sasini PLC. The study was carried
out on the month of May 2018.

CHAPTER TWO

LITERATURE REVIEW
This chapter talks about empirical review, e-procurement, conceptual framework, literature critique,
research gap and what other researchers have talked /discovered about e-procurement. According to
Lysons, K, and Michael, G (2002), they defined E-procurement is the combined use of information and
communication technology through electronic means to enhance internal and external business
management processes, and also E-procurement can be business to business purchase and sale of
supplies and services over the internet. The chapter outlines the overview of e-procurement, the
elements and its advantages on agriculture.

2.1.THEORETICAL REVIEW THESIS

2.1.1 Systems Theory

System Theory, first proposed by Ludwig von Bertalanffy in 1945 has been used for decades as an
analytical approach to understand how complex physical, biological, economic and social systems
operate. Thus, system theory provides a framework for identifying the subject entity, creating a
formalized model of the entity and thereby enabling the ability to study the entity by which groups of
elements and their properties may be studied jointly in order to understand results. Business
organizations and their behavior have often been investigated using what is termed as ‘system’s
approach’. The basic advantage of the system approach is that it encompasses many concepts of system
theory such as inputs, outputs, boundaries, feedback and control, etc. that are useful in understanding
business situations. An example of this system is public e-procurement.

Public e-procurement is one of the important factors in public procurement reform and can play a
significant supporting role in making governments more transparent and accountable. Reducing
corruption in public procurement has been on the agenda of many governments (Henriksen & Andersen,
2003). There is interest in the application of public e-procurement technology to enhance efficiency to
improve the speed and quality of procurement processes, and importantly to enhance transparency and
accountability in government procurement

The systems approach to building trust in e-commerce would focus on effectively deploying a set of
appropriate practices in order to achieve an environment that is trusted.

2.1.2THE BUSINESS TO CONSUMER MODEL (B2C)

This is the most popular model which links a business with individual customers. This model has two
variants: C2C (consumer to consumer), where ecommerce services link consumers with one another,
and C2B (consumer to business), where consumers can name their price for various products or services
(Baily, P. J. H. ,2008).

The e-commerce model B2B (business to business) concerns transactions between two companies.
Although a company can reap enormous benefits by setting up its own e-procurement platform
populated by invited vendors, it may on occasion want to source goods and services from a wider
vendor community. By choosing an e-procurement platform that is compatible with, and can seamlessly
connect, to other B2B platforms, marketplaces and exchanges, a company can take advantage of
favorable buying opportunities while retaining the benefits of its custom e-procurement platform.
Larger service providers will typically sponsor a variety of B2B commerce platforms -- both private and
public -- and will allow participants in one forum to interact with others to the extent desired. (Mooney,
2001)

2.1.3 Electronic Payment (EP)

The emergence of e-commerce has created new financial needs that in many cases cannot be effectively
fulfilled by traditional payment systems. For instance, new types of purchasing relationships-such as
auction between individuals online-have resulted in the need for peer-to-peer payment methods that
allows individuals to e-mail payments to the other individual. Recognizing this, virtually all interested
parties (i.e. academicians, government, business community and financial service providers) are
exploring various types of electronic payment system and issues surrounding electronic payment system
and digital currency. Some proposed electronic payment systems are simply electronic version of
existing payment systems such as cheque, invoices and credit cards, while, others are based on the
digital currency technology and have the potential for definitive impact on today’s financial and
monetary system. Therefore, electronic payment systems and in particular, methods of payment being
developed to support electronic commerce cannot be studied in an isolation. A failure to take place
these developments into the proper context is likely to result in undue focus on the various
experimental initiatives to develop electronic forms of payment without a proper reflection on the
broader implications for the existing payment system. (Lysons, 2007)

An electronic fund transfer is a financial application of EDI (Electronic Data Interchange), which sends
credit card numbers or electronic cheque via secured private networks between banks and major
corporations.

The nature of digital currency or electronic money mirrors that of paper money as a means of payment.
As such, digital currency payment systems have the same advantages as paper currency payment,
namely anonymity and convenience.

From the above review, research has also confirmed that the following barriers exist in implementation
of e-procurement.

as supported by Steinberg’s (2003), as various governments encourage public sector agencies to adopt
e-Procurement, its implementation does not appear to have been smooth and the rate of e-
Procurement implementation success has been less than spectacular, claim that “Government e-
Procurement projects have been notoriously unsuccessful”. The development and implementation of e-
Procurement has not been as easy as some of the solution providers have suggested, nor has it
necessarily brought the anticipated savings. Furthermore, engaging suppliers in the process - especially
smaller organizations - is also proving to be difficult given the level of investment expected in terms of
providing catalogue information to buyers, and marketplaces using different technologies, platforms and
business languages (OGC, 2002).

Also, from this review, we discover some benefits of e-procurement as below; E-procurement solutions
level the playing field between large and small companies alike. For a reasonable investment, every
company can bring significant improvements to the purchasing process and enjoy high returns by taking
advantage of an e-procurement platform. From productivity improvements to efficiency increases to
quantifiable cost savings, the benefits of e-procurement are concrete and eminently justifiable. To make
the proposition even more attractive, service providers such as Purchase Pro offer hosted e-
procurement solutions that can be deployed for a reasonable cost, with little time or effort, and no
ongoing maintenance or support burden.

2.2 conceptual framework

Independent variable Dependent variable

E-Sourcing

• Faster operations

E-Tendering

• purchase and deliveries

Enterprise Resource Planning

• creating orders

Agribusiness performance

• Profits

• Quality

Fig. 1.1. Conceptual Framework.

2.3EMPIRICAL REVIEW

2.3.1Electronic Tendering

Makes it easier to make purchases hence fastening service deliveries to its customers since materials
alive at the right in time. Public bodies must consider the application of the commercial rules in
purchasing the e-tendering solution or service itself. It may seem an obvious statement, but e-tendering
should only be used where tendering is required; clients should always check if a suitable collaborative
business arrangement already exists which offers value for money. Manual tender processes can be long
and cumbersome, often taking three months or longer, which is costly for both buyer and supplier
organizations. E-tendering replaces these manual paper-based tender processes with electronically
facilitated processes based on best tendering practices to save time and money. Buyers are able to
manage the tenders coming in, with all tenders stored in one place. Buyers can cut and paste data from
the electronic tender documents for easy comparison in a spreadsheet. Evaluation tools can provide
automation of this comparison process. (Croom, Johnston, 2003).

2.3.2Electronic Sourcing

Encourages faster operations of organizational factors such deliveries. As e-business transforms the
market for goods and services globally, it is redefining the way companies manage their supply chains. E-
sourcing whether through an electronic catalog, online auction or virtual buying community is emerging
as one of the quickest and least painful ways for companies to boost their bottom line in an increasingly
competitive economy.

The reality is that e-sourcing is actually a separate category of techniques that focuses primarily on the
quality and price of products used in the creation of business products. Since for many companies these
direct materials make up a sizeable junk of their purchasing budget it is in their best interest to
implement some e-sourcing best practices. (Croom, Johnston, 2003).

2.3.3Enterprise resource planning (ERP).

Creating and approving purchasing requisitions and placing purchase orders and receiving goods and
services by using a software system based on Internet technology.

2.4 LITRATURE CRITIQUE

2.4.1 Electronic Tendering

At its simplest; e-tendering provides suppliers with electronic access to Invitations to Tender (ITT) and
associated documents and permits suppliers to securely lodge their completed tenders electronically.
These tenders are then released to authorized staff in the procuring organization after the closing date
for the submission of tenders. (This is the functionality which is specifically covered in the Glover
recommendation). (Croom, Johnston, 2003).
Public bodies must consider the application of the commercial rules in purchasing the e-tendering
solution or service itself. It may seem an obvious statement, but e-tendering should only be used where
tendering is required; clients should always check if a suitable collaborative business arrangement
already exists which offers value for money. Manual tender processes can be long and cumbersome,
often taking three months or longer, which is costly for both buyer and supplier organizations. E-
tendering replaces these manual paper-based tender processes with electronically facilitated processes
based on best tendering practices to save time and money. Buyers are able to manage the tenders
coming in, with all tenders stored in one place. Buyers can cut and paste data from the electronic tender
documents for easy comparison in a spreadsheet. Evaluation tools can provide automation of this
comparison process. (Croom, Johnston, 2003).

Suppliers' costs in response to invitations to tender (ITT) are also reduced as the tender process cycle is
significantly shortened-tendering offers an opportunity for automating most of the tendering process:
from help with preparing the tender specification; advertising; tender aggregation; to the evaluation and
placing of the contract. Electronic commerce, including e-tendering, can help to increase efficiency
through process improvements and also to achieve improved from goods and services sold and
purchased. In the current economic climate, with public sector budgets under pressure and strong
expectations to maximize benefits from every pound of expenditure, the advantages of e-commerce are
more pertinent than ever. E-commerce is only one element of an effective, structured commercial
process carried out by skilled practitioners. If used properly, it can provide significant benefits in
increased effectiveness, efficiency, and savings. James R Stock (2005)

2.4.2 Electronic Sourcing (ES)

The days of pushing paper are swiftly drawing to a close in the world of commerce. As e-business
transforms the market for goods and services globally, it is redefining the way companies manage their
supply chains. E-sourcing whether through an electronic catalog, online auction or virtual buying
community is emerging as one of the quickest and least painful ways for companies to boost their
bottom line in an increasingly competitive economy. While over 90% of business do use e-commerce
strategies to some extent most e-sourcing in under the terms wider umbrella of meaning, using the
internet to assist in the purchase of goods and services needed by a business. The reality is that e-
sourcing is actually a separate category of techniques that focuses primarily on the quality and price of
products used in the creation of business products. Since for many companies these direct materials
make up a sizeable junk of their purchasing budget it is in their best interest to implement some e-
sourcing best practices. (Croom, Johnston, 2003).

E-sourcing does more than establish an electronic venue for buyers and sellers to meet. It also
streamlines workflows, enhances flexibility and drives transparency in the buyer-seller relationship. By
enabling the procurement process, e-sourcing improves the accuracy and availability of information on
the supply and demand side, facilitating collaboration as well as control and compliance. That
knowledge makes for more informed negotiations and richer arbitrage opportunities. E-sourcing frees
up purchasing personnel to focus on more strategic concerns such as supply base development and
relationship management. Linking suppliers into up-front innovation processes and value chain
restructuring. Obviously, e-sourcing can save money, but there are other equally important benefits as
well e.g. e-sourcing can improve worker collaboration because this web based applications can be
assessed by all of the departments in a company. So if an RFP is being prepared in order to purchase the
direct materials needed for a new project, then all of the teams and departments involved in the project
can use the application to contribute to the RFP. The end result is a clearer, more exact explanation of
what the project entails. And because everyone is involved at that level, there is less resistance to the
project in later stages. (Murthy, 2002).

2.4.3 Electronic Payment (EP)

As payment is an integral part of mercantile process, electronic payment system is an integral part of e-
commerce. The emergence of e-commerce has created new financial needs that in many cases cannot
be effectively fulfilled by traditional payment systems. For instance, new types of purchasing
relationships-such as auction between individuals online-have resulted in the need for peer-to-peer
payment methods that allows individuals to e-mail payments to the other individual. Recognizing this,
virtually all interested parties (i.e. academicians, government, business community and financial service
providers) are exploring various types of electronic payment system and issues surrounding electronic
payment system and digital currency. Some proposed electronic payment systems are simply electronic
version of existing payment systems such as cheque, invoices and credit cards, while, others are based
on the digital currency technology and have the potential for definitive impact on today’s financial and
monetary system. While popular developers of electronic payment system predict fundamental changes
in the financial sector because of the innovations in electronic payment system. Therefore, electronic
payment systems and in particular, methods of payment being developed to support electronic
commerce cannot be studied in an isolation. A failure to take place these developments into the proper
context is likely to result in undue focus on the various experimental initiatives to develop electronic
forms of payment without a proper reflection on the broader implications for the existing payment
system. (Lysons, 2007)

2.5 RESEARCH GAP

There has been poor performance of organizations and all this is caused by the sleeping procurement
department. This has resulted to poor customer service, poor production lines, and poor quality of the
company’s produce thus resulting to high customer turnover, stiff competition in the business
environment and poor relationship with the business partners; The management of these institutions
has to reach their suppliers and customers physically in order to make sales or purchases.Therefore,
there was an urgent need for this research to be conducted.
CHAPTER THREE

THE METHODOLOGY

This chapter contains a detailed explanation on research designs, target population, sampling technique,
data collection instruments and data collection procedures and data analysis procedures.

3.1 RESEARCH DESIGN

The study adopted a case study design to conduct the study. A case study design was appropriate for the
study as it enabled the researcher to conduct an in-depth investigation on the subject matter at hand
(Mugenda and Mugenda 1999).

3.2 TARGET POPULATION

The target population for the study was 100 employees working in Sasini PLC.

3.3 DATA COLLECTION INSTRUMENTS

The researcher used the following data collection instruments; interviews, questionnaire and
observation of the trends.

3.4 DATA COLLECTION PROCEDURE

The study utilized a sample size of 30% of the targeted population as recommended by (Mugenda
Mugenda, 1999) who recommends a sample size of between 10% to 30% of the target population to be
appropriate for a case study design.

3.5 DATA ANALYSIS AND PRESENTATION

The study instruments were edited for completeness and consistency. Quantitative data was analyzed
and presented descriptively using frequency tables while qualitative data was presented in narration
form according to the study objectives.

CHAPTER FOUR

This chapter contains a detailed explanation on background information, respondents’ Gender, Job
description, Designation, effects of E-procurement, and challenges facing e-procurement in
organizations.

4.1 Background information

The findings were analyzed and presented in this section as per the research objectives;

The study was guided by the following specific objectives:

i. To establish how electronic tendering makes it easier to make purchases hence fastening
agribusiness supply chain performance in Sasini PLC.

ii. To establish how electronic sourcing encourages faster operations on agribusiness supply chain
performance in Sasini PLC.

iii. To investigate how enterprise resource planning (ERP) affects agribusiness supply chain
performance in Sasini PLC.

4.1.1Age of respondents

The study sought to find out the distribution of respondents by age and responses from the field data
and presented in table.

Table 4.1 Age of the Respondents

Age Frequency Percentage (%)

20-30 8 26.7

31-40 7 23.3

41-50 11 36.7

51-60 4 13.3

Total 30 100

From table 4.1, it was found from the field data that 13.3% (4) of the respondents are aged between 51-
60, 23.3% (7) of the respondents are aged 31-40,36.7% (11) of the respondents are between 41-50, and
26.7%(8) of the respondents are aged between 20-30. It is clear that the company has majority of the
employees aged 41-50. This is an indication that majority of the respondents are growing old. It is also
clear that the lowest no of employees is aged between 51-60 which is usually the old age.

4.1.2 Gender of Respondents

The researcher developed to investigate the gender of the respondents to the study. Table 4.2 below
shows the data

Table 4.2 Gender of the Respondents

Gender Frequency Percentage

Male 22 73.3

Female 8 26.7
Total 30 100

From the table 4.2 it is evident that 73.3% (22) of the respondents were male. And the rest 26.7 % (8)
were female. This clearly indicates that most of the employees in Sasini PLC are male.

4.1.3 Level of Education of Respondents

The researcher developed to investigate the gender of the respondents to the study. Table 4.2 below
shows the data

Table 4.3 level of education

Educational level Frequency Percentage (%)

Primary level 0 0.0

Secondary level 3 10.0

Certificate 4 13.3

Diploma level 18 60.0

Degree level 5 16.7

Total 30 100

The findings from the study indicate that the majority of the respondents had professional knowledge of
Diploma level and above. This knowledge is of great value in the formulation of strategies and tackling g
of new challenges in management.

4.1.4 Respondents’ Job Designation

The study sought to establish the respondents’ designation of in Sasini PLC.

The results obtained are summarized in the table 4.5 below.

Table 4.4 Respondents’ Job Designation

Designation Number of employees Percentage (%)

Purchasing 6 19.4

Stores. 9 29.0

Finance 5 16.1
Transport and logistics. 5 16.1

Production. 6 19.4

Total 31 100

From the table above it is clear that 19.4% of the respondents represented the purchasing department,
29.0% represented stores department, 16.1% represented Finance department, and another percentage
of 16.1% represented Transport and Logistics department and lastly 19.4% represented production
department

4.1.5The effect of E-Procurementin an organization.

The Researcher sought to know the Effects of e-procurement in an organization in Sasini Tea Company
Limited. The results obtained are summarized in table 4.6 below:

Maximization of profits since e-procurement is faster and does not involve a lot of paperwork or
movements that can result to such negative effects as delays in delivery and stationery
expenses.Strengthened and lasting relationship between the suppliers and the organizations that uses
the same method of e-procurement in their business operations.There is a likelihood of Shorter lead
time performance since requests delivery are done online which is a much faster and convenient mode
of communication no matter of distance.Can encourage organizational growth since it exposes an
organization into the market with different and many market options.

4.1.5.1The positive effects of e-procurement in Sasini PLC.

Researcher sought to explore the positive effects of e-procurement on Sasini PLC in its agribusiness
activities. The results obtained are summarized in table 4.6 below:

Table 4.5 Positive Effects of E-Procurement on Sasini PLC.

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Competitive advantage

Frequency

Percentage (%)

14
46.7

20.0

20.0

13.3

30

100

Timely delivery

Frequency

Percentage (%)

11

36.7
8

26.7

6.0

13.3

30

100

Shorter lead time performance

Frequency

Percentage (%)

12

40.0

9
30.0

13.3

16.7

30

100

Cost reduction

Frequency

Percentage (%)

15

50.0

33.3
3

10.0

10.0

30

100

From this table 4.5, it is depicted that 46.7% of the respondents strongly agreed that competitive
advantage is one of the positive effects of e-procurement, 20.0% agree, 20.0% disagree, and 13.3
strongly disagreed.36.7% of the respondents strongly agree that timely delivery is one of the positive
effects of e-procurement in Sasini PLC, 26.7% agree, 6.0% disagree, and 13.3% strongly disagreed.40.0%
of the respondents strongly agree that shorter lead time performance is one of the positive effects of e-
procurement in Sasini PLC, 30.0% agree, 13.3% disagree, and 16.7% strongly disagree.50.0% of the
respondents strongly agree that cost reduction is one of the positive effects of e-procurement in Sasini
PLC, 33.3% agree, 10.0% disagreed, and 10.0% strongly disagree.

4.1.5.2Negative effects of e-procurement to an organization

The study sought to find out the negative effects of negotiated tendering in Sasini PLC. The results
obtained are summarized in table 4.7 below:

Table 4.6Negative effects of e-procurement in Sasini PLC.

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Encourages unethical behaviors associated with procurement e.g. fraud

Frequency

Percentage (%)
15

50.0

11

36.7

10.0

3.0

30

100

Encourages single sourcing

Frequency

Percentage (%)

16

36.7

26.7

13.3

6.7

30

100

May be inefficient since it depends on the network that may sometimes fail.

Frequency

Percentage (%)
17

56.7

30.0

6.7

6.7
30

100

Does not give room for small supplier or organization development as it is expensive.

Frequency

Percentage (%)

21

70.0

16.7
3

10.0

3.0

30

100

May lead to overdependence on one supplier

Frequency

Percentage (%)

15

50.0
9

33.3

10.0

10.0

30

100

From table 4.6 it is depicted that 50.0% of the respondents strongly agreed that e-procurement may
encourage unethical behaviors associated with procurement e.g. fraud, 36.7% agree, 10.0% disagree,
and 3.0% strongly disagreed.

From table 4.6, 36.7% of the respondents strongly agreed that e-procurement encourages single
sourcing, 26.7% agreed, 13.3% disagree, and 6.7% strongly disagreed.

From table 4.6, 56.7% of the respondents strongly agree that e-procurement may be inefficient since it
depends on the network that may sometimes fail, 30.0% agree, 6.7% disagree, and 6.7% strongly
disagree.

From table 4.6, 70.0% of the respondents strongly agree that e-procurement does not give room for
small supplier or organization development as it is expensive to apply, 16.7% agree, 10.0% disagreed,
and 3.0% strongly disagree.
From table 4.6, 50.0% of the respondents strongly agree that e-procurement may lead to
overdependence on one supplier maybe as a result of the prizes or performance, 33.3% agree, 10.0%
disagree, and 10.0% strongly disagree.

4.1.6 Challenges facing organizations in applying e-procurement.

Challenges facing Sasini PLC in applying e-procurement

Researcher sought to know the challenges facing organizations in applying e-procurement. The results
obtained are summarized below.

Table 4.7Challenges facing Sasini PLC in applying e-procurement.

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Lack of capital

Frequency

Percentage (%)

22

73.3

20.0

6.0
0

0.0

30

100

Organizational structure

Frequency

Percentage (%)

18

60.0

26.7

6.0

6.0

30

100

External Competition

Frequency
Percentage (%)

12

40.0

30.0

16.7

13.3

30

100

Legal policies

Frequency

Percentage (%)

30.0

10

33.3
6

20.0

16.7

30

100

Technological knowhow

Frequency

Percentage (%)

19

63.3

23.3

10.0

3.0
30

100

From table 4.7 it is depicted that 73.3% of the respondents strongly agreed that Lack of capital is a
Challenge facing Sasini PLC in applying e-procurement, 20.0% agree, 6.0% disagree, and no one strongly
disagreed.

From table 4.7, 60.0% of the respondents strongly agreed that organizational structure is a Challenge
facing Sasini PLC in applying e-procurement, 26.7% agreed, 6.0% disagree, and 6.0% strongly disagreed.

From table 4.7, 40.0% of the respondents strongly agree to external competition as a Challenge facing
Sasini PLC in applying e-procurement, 30.0% agree, 16.7% disagree, and 13.3% strongly disagree.

From table 4.7, 30.0% of the respondents strongly agree to legal policies as a Challenge facing Sasini PLC
in applying e-procurement, 33.3% agree, 20.0% disagreed, and 16.7% strongly disagree. About, 63.3% of
the respondents strongly agree to technological knowhow as a challenge facing Sasini PLC in applying e-
procurement, 23.3% agree, 10.0% disagree, and 3.0% strongly disagree.

4.1.7Extent to which e-procurement tendering affects an organization.

The study sought to find out the degree to which e-procurement affects Sasini PLC. The results obtained
are summarized in table 4.9 below:

Table 4.8The Degree to which E-Procurement affects Sasini PLC.

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Very much

Frequency

Percentage (%)

18

60.0

20.0
5

16.7

3.0

30

100

Much

Frequency

Percentage (%)

17

56.7

26.7

2
6.0

10.0

30

100

Average

Frequency

Percentage (%)

12

40.0

30.0

16.7
4

13.3

30

100

Low

Frequency

Percentage (%)

13.3

23.3

12

40.0

7
23.3

30

100

From table 4.8 it is depicted that 60.0% of the respondents strongly agreed that e-procurement affects
Sasini PLC very much, 20.0% agreed, 16.7% disagreed, and 3.0% strongly disagreed.

From table 4.8, 56.7% of the respondents strongly agreed that e-procurement affects Sasini PLC in a
much extent, 26.7% agreed, 6.0% disagree, and 10.0% strongly disagreed.

From table 4.8, 40.0% of the respondents strongly agree to average as the range to which e-
procurement affects Sasini PLC, 30.0% agree, 16.7% disagree, and 13.3% strongly disagree.

From table 4.8, 13.3% of the respondents strongly agree to low as the range to which e-procurement
affects Sasini PLC, 23.3% agree, 40.0% disagreed, and 23.3% strongly disagree.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter containsSummary of study, conclusion findings, recommendations, limitations and further
research work.

5.1 Summary

This chapter summarizes the major findings, conclusion, recommendation and suggestion for further
study.

The Specific objectives. To establish how electronic tendering makes it easier to make purchases hence
fastening agribusiness supply chain performance in Sasini PLC. To establish how electronic sourcing
encourages faster operations on agribusiness supply chain performance in Sasini PLC. To investigate how
enterprise resource planning (ERP) affects agribusiness supply chain performance in Sasini PLC.

5.1.1 Electronic tendering

Electronic Tendering makes it easier to make purchases hence fastening service deliveries to its
customers since materials alive at the right in time.

5.1.2Electronic Sourcing

Electronic Sourcingencourages faster operations of organizational factors such deliveries,

5.1.3Enterprise resource planning (ERP).

Creating and approving purchasing requisitions and placing purchase orders and receiving goods and
services by using a software system based on Internet technology. Therefore-resourcing will enhance e-
procurement in urgent order making and delivery hence performance of agribusiness.

5.2 Conclusions

The study made the following conclusions

Sasini PLC does not do market research for various goods and services before choosing to apply e-
procurement method purchases and supply. This has made the organization to obtain goods at a high
than the market price, the wrong goods, the wrong quality, the wrong quantity and from the wrong
source. The procurement management of Sasini PLC does not make e-procurement an internal open
practice. This has led to creation of negative image from other departments. Sasini PLC does not give
attention other methods of procurement this has led to creation of inflexibility and mistrust from
internal and external environment in purchasing and supply.
5.3 Recommendations of the Study

From the above study, the following recommendations were made

i. Total market research for Sasini PLC should be undertaken for various goods and services before
choosing the right supplier for purchases and supply. This will help the organization to obtain goods at a
market value, the right goods, the right quality, the right quantity and from the right source.

ii. The procurement management of Sasini PLC should make e-procurement an internal open
practice so as to create a positive image from other departments. This can either be through
encouragement of participation of different departments in the procurement process and even
inspection.

5.4 Limitations of the study

Time within which research was to be conducted was minimal when compared with the huge data in the
field out there. Also, there was a financial problem for printing, traveling and internet research charges.

5.5 Further Research Work

Further research should be conducted on how ready organizations are to embrace e-procurement and
what factors will entice the organizations to go digital.

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QUESTIONAIRE

SECTION A: Personal Information

1. What is your gender?

Male ( )

Female ( )

What is your age bracket?

20-30 years ( )

31-40 years ( )

41-50 years ( )

51 and above years ( )

2. How long have you worked for Sasini PLC?

Less than one year ( )

1-5 years ( )

6-15 years ( )

16-25 years ( )

More than 25 years ( )

3. What is your level of education?

Secondary Level ( )

Certificate ( )

Diploma Level ( )
Degree Level ( )

Post Degree Level ( )

Other (Specify) ( )

4. Please tick your designation

Purchasing ( )

Finance ( )

Transport and Logistics ( )

Production ( )

Storekeeping ( )

SECTION B

6. Does effect of E-Procurement have any effect to your organization?

Yes ( )

No ( )

7. If the answer above is yes, list some of those effects.

…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………

8. Are there positive effects of e-procurement in your organization?

Yes ( )

No ( )

9. If the answer above is yes, to what extent do you agree with the following?

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Competitive advantage

Timely delivery
Shorter lead time performance

Cost reduction

10. Are there Negative effects of e-procurement to an organization?

Yes ( )

No ( )

11. If the answer above is yes, to what extent do you agree with the following?

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Encourages unethical behaviors associated with procurement e.g. fraud.

Encourages single sourcing

May be inefficient since it depends on the network that may sometimes fail.

Does not give room for small supplier or organization development as it is expensive.

May lead to overdependence on one supplier

SECTION C

12. Does your organization face any as a result of applying e-procurement?

Yes ( )

No ( )

13. If the answer in above is yes, to what extent do you agree with the following

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Lack of capital

Organizational structure

External Competition
Legal policies

Technological knowhow

14. Does e-procurement have any effect to your organization?

Yes ( )

No. ( )

15. If the answer in above is yes, what extent do you agree with the following as the extent to which
e-procurement affects your organization?

FACTORStrongly Agree Agree Disagree Strongly Disagree Total

Very much

Much

Average

Low