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EFFECTS OF GLOBALIZATION ON PROCUREMENT

EFFICIENCY A CASE STURDY OF SUAM HARDWARE.

NAME: MAKHANU WAFULA CLINTON


INDEX NUMBER: 5032100425
INSTITUTION: THE KITALE NATIONAL POLYTECHNIC
SUPERVISOR: MR STEVEN MUSILANG`OMBE

THE PROJECT IS SUBMITED TO KENYA NATIONAL


EXAMINATION COUNCIL FOR AWARD OF A DIPLOMA IN
SUPPLY CHAIN MANAGEMENT

DECLARATION
This research project report is my original work and has not been
presented by any other College.No part of these proposal should be
produced without my consent or that of the college (The kitale national
polytechnic)

Signature…………………………………. Date……………

MAKHANU WAFULA CLINTON


ADMISSION: 19/20974

This research project report has been submitted with my approval to the
kitale national polytechnic college supervisor
Signature……………………………. Date…………………….

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CHAPTER ONE
Introduction.
1.1 Background information.
According to m robbinson (2019) globalization attributes to the rapid movement of goods and
services across national and international borders. The revolutionary changes in technology
which has provided the mechanism that enhance the growth of international business the growth
of competition at both domestic and international levels which has driven firms to look beyond
their domestic markets for new opportunitiesThe progressive removal of barriers to trade and
capital movements which which has stimulated greater flow of exports,imports and foreign direct
investments today different nations of the world have become closer than ever witnessed in the
human history.This has created a platform where all kinds of goods ranging from food
stuffs ,construction materials to other manufactured goods are being exchanged across the
country.According to Emir eteria (2019)globalization can be understood in two ways as a vision
which will be called inside out. From this perspective ,globalization offers opportunities for
further growth , secondly inside out which presents much more prominent
limitations ,implications and risks .this has created a new complex business environment and
therefore companies must take advantage of the opportunities presented and also learn to survive
in new complex business environment and therefore companies must take advantage of
opportunities presented and also learn how to survive in a new complex situations which comes
with globalization . despite globalization being a universal trend the process touches every aspect
of the organization. The effects are felt from human resource management ,procurement
operations and logistics.Based on emir- erteria views economic dimensionsof globalization could
be considered as foundation as well as determinant of social globalization .economic
globalization intensifies corporations as well as competition on regional and global level and
therefore enhances economic and political inter-dependence among countries
According to E-mekhabishvili (2019) the cyclicalnature of market economy development
determines state interventions with various levels in certain periods the role of government in
economy is getting more important in recession and crisis period and it is becoming less
important in a period of normal development of the economy . The most proof of this is the
global financial and economic crisis that has been overcomes by active anti-crisis policy of the
state .Globalization significantly changes the state economic role.
According to Bretton wood (2019) globalization works best with support of some financial
institutions example world bank and international monitory fund (IMF). This institutions helps

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to restore and sustain the benefits of global integration by promoting international economic
corporation.

1.2statement of the problem


In the midist of changes in technology,the global procurement has experienced rapid changes
over the last two decades (Hussein 2019) as market becomes more and more globalized through
regional and international trade ,procurement practitioners face greater challenges and
opportunities (luke amadi2020) the challenges range from compliance cross boarder law and
regulations and lead time Therefore it is important to create an understanding on the impact of
globalization on procurement functions for those firms which operates within and outside the
country. The adoption of global procurement might not be effective to organizations or company
due to varying factors such as complicated logistics, currency fluctuations, and tariff barriers.
The success or failure of procurement in a global stage is a firm decision and it depends on the
circumstances under which the firm operates.

1.3objectives of the sturdy


1.3.1general objectives

The effects of globalization on procurement efficiency


1.3.2specific objectives
The sturdy is guided by the following objectives
i. To determine the impacts of information technology on procurement
ii. To determine the international procedures to be followed while carrying out procurement
preceding’s
iii. To determine monitory transmissions of suam hardware

1.4 Research questions


i. What is the impact of information technology on procurement?
ii. What are some of the international procedures to be followed while carrying out
procurement preceding’s?
iii. What are the monetary transmissions of suam hardware procurement departments?
1.5 significance of sturdy
The sturdy was important to suam hardware and other retail businesses as it gave empirical
evidence which the organization used to design more effective strategies, the sturdy offered

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insightful information to Kenyan government, it assisted the government in developing
favourable policies and regulations for local companies which intended to procure materials
internationally, finally it acted as a source of empirical data and reference points for other
scholars interested in the field
The sturdy assumed that all the information given by respondents were true to the best of their
knowledge and that it was of help the sturdy was taken into consideration that the variables used
in the research period is valid so as to give clear data
1.7 conceptual framework
Conceptual framework assists the reader to easly connect the relationship of the various
variables (
Mugenda 2018) the following is the conceptual framework on the effects of globalization on
enhancing procurement efficiency

INDEPENDENT
DEPENDENT
VARIABLES

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1effects of information technology
-Ict development
-Ict contribution
-Labor productivity

2.international procedure of carrying out


procurement
-identification of requirement
-evaluation of supplier list
Contract negotiation
-raise purchase requisition and release purchase
PROCUREMENT EFFICIENCY
order

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3.monetory transmission
-price of imports
-quantity of imports

CHAPTER TWO.
LITERATURE REVIEW.
2.1 Review of variables.
2.1.1 Impact of Information Technology .
According to Kurihara (2017), since the introduction of the floating exchange rate system during
the many studies have been presented to show the relationship between exchange rate
fluctuations and international trade. The increase of exchange rate volatility dampens
international trade as expected .
For example, a study by Kandil, (2019) indicated that a depreciation of the domestic currency
may stimulate economic activity within the country through the initial increase in the price of
foreign goods relative to home goods. This means that exchange rate depreciation diverts
spending from foreign goods to domestic goods. A fact which directly affects procuring of goods
from outside the country. According to Kandil, the success of depreciation of currency in
promoting trade balance largely depends on switching demand in the proper direction and

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amount, as well as on the capacity of the home economy to meet the additional demand by
supplying more goods.
To put it into perspective, currency depreciation lower export prices while raising import prices.
The converse is true where currency appreciation gives the domestic currency more economic
power to buy more foreign goods. In summary, currency depreciation increases net exports and
increases the cost of production while currency appreciation decreases net exports and the cost of
production. Thus, the cyclic movement between depreciation and appreciation directly affects
global procurement. It establishes the effects of exchange rate variability on international trade,
Coric and Pugh (2021) linked the increased exchange rate fluctuations to negative effects on
international trade. The effects of exchange rate volatility on export flows for South American
countries by Serenis, (2018) showed an adverse relationship between exports and exchange
volatility. Jiranyakul argues
that in an attempt to determine the relationship between exchange rate uncertainty and import
demand of Thailand indicated a negative impact of exchange rate uncertainty on Thailand’s
imports.
The role of exchange rate volatilty on bilateral exports from Euro Zone Countries to the US. The
study confirmed that exchange rate volatility causes a negative influence on international trade
between the United States and the Euro zone. An evaluation by Nicita (2020) to determine the
extent to which the exchange rate affects 8 international trade and trade policy indicated that
exchange rate misalignments do affect international trade flows in a substantial manner. The
study found out that currency under valuation is found to promote exports and restrict imports,
while the converse holds in the case of over valuation.

He posits that in magnitude, misalignments across currencies result in trade diversion


quantifiable in about 1 per cent of world trade. Nicita (2013) further indicated that with regard to
volatility, exchange rate volatility is probably not a major policy concern. He notes that from the
perspective of enhancing trade, the effects of lower volatility are indirect and originate from
long-term exchange rate commitments such as currency unions and pegged exchange rates rather
than short-term exchange rate fluctuation. Thus, the limited importance of exchange rate
volatility is possibly related to the increasing availability of financial instruments to hedge
against exchange rate risks Kurihara, (2020). According to Iravo,(2020) logistics involves
integration of information, transportation, inventory, warehousing, material handling and
packaging. Thus, they contend that logistical management includes the design and administration
of systems to control the flow of materials, work in process and finished inventory to support
business unit strategy with the overall goal being to achieve a targeted level of customer service
at the lowest possible total cost.
Musanzikwa (2020) posits that procurement must be seamlessly integrated with the other aspects
of logistics and functions within the organization, such as Warehousing, Distribution, Finance,
and human resources

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2.1.2 Ict developnent and contributions
According to T ben hassen (2020) information technology is the fastest way that helps any given
organization to carry out their daily preceedings.As a result of this many organizations around
the world have been able to carry out and enhance their operations in a faster and effective way
one of the major contribution of ict to organizations as stated out by T ben includes speed ,
accuracy, security of important information among others.
According to Shaw (2017) a logistic system with clear communication lines, timely flow of
documentation and constant feedback facilitates the procurement process. A study on
international supply chain practices in Tanzania by Tesha (2021) identified logistics challenges
of coping with long supply chains as one of the problems affecting global procurement systems.
In reference to developing countries, Jiang and Tian (2020) add that lack of holistic logistics
knowledge in low-cost developing countries may trouble procurement executives when
implementing global sourcing since less-developed country suppliers may be short of experience
with the most advanced approaches and are usually unfamiliar with high-standard requirements,
such as sequence deliveries combined with Just-In-Time; electronic data interchange
communications and vendor-managed inventory solutions which are important capabilities of 9
supply chain management in determining how much benefits a company can derive from global
sourcing.
Furthermore low-grade infrastructure of logistics in developing countries may influence the
efficiency of global sourcing Jiang & Tian, (2020) According to Hultman,(2020), affordability
through low cost is at the core of any company’s business idea. Bayat, (2019) posit that any
organization seeks a competitive advantage in their industries. They contend that companies
achieve competitive advantages by delivering products or services at a lower cost i.e. a cost
related to the quality of the product or service that will be both attractive in the market place and
will yield sufficient return on investment. Thus, cost of production is quite instrumental for
organizations to produce competitive products and services.
This concept is related to Porter's generic strategies of low-cost competitive strategy. A study by
Jiang and Tian (2017) to determine the problems and challenges of global sourcing in Chinese
manufacturing enterprises indicated that the higher demand for technical quality of manufactured
products is one of the factors driving more Chinese manufacturers to adopt a global sourcing
strategy in order to improve their competitive advantage by helping the firms to optimize the use
of global resources. Therefore, global competition can be used to wither competition since global
procurement can be used to acquire high quality products where locally produced goods do not
achieve and maintain the required quality and efficiency to meet the required targets , Jiang and
Tian (2017) gives an example of unsatisfactory quality of domestic products. They posit that the
quality of products obtained from the domestic market may not meet the requirements of buyers
or they may not be sufficient for the manufacturers
2.1.3 Monetory transmissions of suam hardware
Smith, (2020) argues that cost as a driver of global procurement has been linked to
comparative cost advantage theory. The theory proposes that a country must specialize in those

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products that it can produce relatively more efficiently than other countries. Comparative
advantage thus also leads to specialization which bring more, better and cheaper goods to
consumers Kattel & Lember,(2019).
The source of comparative cost advantages is the effect of different endowments of factors of
production. Hence, each nation has a comparative advantage “in the production of commodities
into sell their products to international markets where higher standards may apply. Similarly,
domestic supplier may not be able to provide satisfactory warranties or after-sales services to the
manufacturers. Global procurement in this sense enables the firms to source for superior goods
that meet customer demands, thus gains a competitive edge over other competitors.
The role of government in facilitating or creating barriers for international trade cannot be under
estimated. In acknowledgement of the positive significance of free trade, World Trade
Organization has been at the fore front in fronting agreements that create a framework that aims
at establishing global economic development via liberalizing global trade Anderson, (2019). )
Government procurement, which constitutes more than10% of national economy in most
countries, has for a long time been used for supporting national interests and is perceived by
many as one of the main barriers to free trade.
They argue that in accordance to the comparative advantage theory, the so called discriminatory
government procurement makes states worse off in the long run because it leads to inefficient
allocation of resources and limits the benefits stemming from free trade. Instigators of these
policies fail to realise the benefits from liberalized procurement such as access to other markets,
support for liberalizing countries’ own markets, increased competition that leads to increased
(international) competitiveness, job creation and budgetary savings Kattel & Lember, .
According to Chou (2018), Government support for global trade arises where the country abides
by a set of rules for liberalizing the economy and relaxing state control over foreign trade and
investment. He posits that noticing the gain through granting preferential policies to foreign
investors and lowering transaction costs, bureaucratic units and localities in highly regulated
context seek for liberalizing their economic activities and integrating themselves with the world
economy. , monetary transmission occurs where there is nondiscrimination of products or service
regardless of their source. They explain that it is essentially a ban on distinctions based upon the
origin of products and the nationality of persons. Monetary transmission eliminates granting of
privileges and due protection to domestic products and nationals. The monetary transmission can
be achieved through tariffs and taxes which are the classical field addressing non-discrimination
in international economic law as import and export tariffs are inherently discriminatory as they
privilege domestically produced and sold goods. Deliberately lowering inhibitory tariffs to cross
border movement of goods can act as a facilitator for global procurement of goods and services.
Economically, tariff reductions should reduce the price of imported goods which makes them
more competitive. The liberalization can also be achieved by lowering non tariff barriers.
According to Mohan, Khorana and Choudhury (2017), non tariff barriers include quantitative
restrictions, subsidies, anti dumping and counter vailing duties, customs valuations, product
standards and technical regulations. They posit that these are measures, different from ordinary
customs tariffs, that distort trade and reduce economic welfare and often such barriers are

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attributed to state activities and policy measures that typically have the potential to reduce
quantity of imports, increase the price of imports, change elasticity of demand for imports, and
increase uncertainty in the implementation of tariff preferences. The study therefore hypothesis
that market liberalization enables efficient management of global procurement. , the use of
Information Communication Technologies (ICTs) has dramatically changed services, business
models and people’s expectations of the quality and efficiency of information sharing and
service delivery. They contend that development in information and communication technology,
especially the Internet helps organizations to become more effective through the integration of
firm’s information technology (IT) infrastructure. It also helps firms to manage instant
communication and interactions with other people across the globe

2.1.3 The international procedures to be followed while carrying out procurement


preceedings in suam hardware

Acording to Nzdyrko (2019) firms establish and execute global sourcing plans in an effort to
match competitors’ attempts at sourcing; improve non-competitive cost structures; focus on
core competencies; reduce capital investment and overall fixed costs; achieve cost-competitive
growth within their supply base for goods, services and technologies in the value chain; they
also aim to establish future procurement footprints in low-cost countries. The challenge with
low cost country sourcing as eluded by Lanza, ET. Al, (2019) is that low-cost suppliers often do
not meet the higher quality standards which are required by multinational companies. They
contend that when promising suppliers were chosen, measures to promote development such as
technical support and continuous process control at the supplier’s production site are necessary
in order to guarantee a reliable product quality as well as on-time delivery. On the other hand,
some companies tend to focus on procuring products based on quality rather than cost. A study
to determine factors affecting the selection of optimal suppliers in procurement management,
Gonzalez (2019) identified quality of the product as a major creterion in selection of suppliers.
The study was aligned to value chain quality management and measured quality in terms of
management commitment, product development of suppliers, process improvement of suppliers,
quality planning and quality assurance in supply chain, quality assessment in production,
inspection and experimentation, quality staff of supplier and quality of the final product. From
the review, a company may therefore make a deliberate effort to target countries with low labour
cost or high quality standard products depending on the customer demands and economic power.
Without a doubt, transport is an indispensable part of international trade. It provides vital
distribution for production, as well as essential personal mobility, directly interconnecting
businesses to worldwide markets. In fact the global procurement would be meaningless without
the ability to move goods and people around the planet,
Looking at the definition of supply logistics, it helps in understanding the significance of
infrastructure in the procurement process. Logistics as part of the supply chain process that plans,
implements, and controls the efficient, effective forward and reverse flow and storage of goods,

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services, and related information between the point of origin and the point of consumption in
order to meet customers’ requirements’. This means that proper efficient infrastructure is
required to successfully achieve the objectives of all the indicators of effective procurement
logistics. According Yan, (2017), the fundamental impact of infrastructure on international
movement of goods lies on the cost factor. The nature of infrastructure directly affects the cost of
moving goods across borders. While giving an example of transport, the World Trade Report
indicated that some of the factors that influence transport cost include geographical features of
countries, the quantity and quality of the physical infrastructure that support transportation
services, the procedures and formalities used to control the movement of goods from one country
to another, the extent of competition in the transportation sector, the pace of technological
innovation in the sector and the cost of fuel .These factors directly influences whether a market is
accessible or not for international procurement of goods and services. , states that the World
Trade report further indicates that the cost of transporting goods from producers to users affects
the volume, direction and pattern of trade. It determines where the line between tradable and
non-tradable goods is drawn and shapes which firms are able to participate in trade and how they
organize their production internationally (World Trade Organization). This example shows how
infrastructure be it in transport, communication, management or control of procurement process
is critical as it will directly influence the cost of procurement.
Thestudytherefore assumed that a company may deliberately focus on countries with good
infrastructure when conducting global procurement of goods and services. The other strategy that
can be adopted for global procurement is targeting of countries speaking the same language to
facilitate faster processes. A study by M belkhouja (2022) showed that the impact of language
and cultural differences is likely to be important in transactions where individuals have to
coordinate with each other. The study indicates that language boundaries, as is often the case in
international factor movements, reduces the level of trust between economic agents and makes
obtaining information more costly by raising hurdles in communication both economic theory
and empirical evidence suggest that sharing an official or speaking a common language provide
an important stimulus in international economic exchange and having a common language has
been attributed to an increase in trade flows by about 40%. A study by Tarunugam (2021)
illustrated how crucial communication is when dealing with global supply sources. The study
pointed out that Kenya, doesn’t take chances especially when doing business in foreign countries
where language could be a barrier.
It shows that the agency not only have invested in training its staff foreign languages, but have
successfully managed to employ a pool proficient in foreign languages or expatriates to enhance
communication. Therefore it reduces the level of mistrust between economic agents and the cost
of communication, certain organizations may opt to trade with countries speaking the same
language or alternatively trade staff on the suppliers preferred language to enhance
communication and efficient coordination. This is particularly important in global procurement
where information sourcing and negotiations requires proper understanding of the economic
players involved in the process.

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2.2 Critique of existing literature
Pullins and Fyne, (2021) states that globalisation is the term used to describe the recent impact of
innovations in communications and transport systems on trade and the growing interdependence of
countries due to economic development economic output. The nations have to reduce the high levels of
protection between trading blocks of countries and to adopt policies to liberalise their economies in order
to increase their volume of trade. It has been proved that, for many countries, increased economic
liberalisation and openness leads to growth. It is also recognised, however, that for some supermarkets
and for some communities within countries the transition from a protected, centrally controlled economy
may bring with it serious, negative, short and medium term consequences.These measures have resulted
in benefits of supermarkets including the stimulation of private sector trading networks needed in a
modern economy. However, the risks associated with adopting a more exposed position in a highly
African competitive global market have presented the supermarkets with some serious difficulties. The
theoretical framework for the current study draws from environmental organization literature since the
study attempts to establish the link between the globalization effects and procurement. The study focuses
on the opportunities/threats which are sub dimensions of the environmental dimension. According to
Tansuhaj (2017), globalization, firms are affected by the changes in both market opportunities and threats.
They posit that these opportunities and threats present the dimensions of the macro environment and can
be regarded as forces which affect organizational outputs.

2.3 Evaluation of proposed literature.


The literature reviews in this chapter present the detail linkage between the dependent and
independent variables in the study. TNCs have to be physically present with higher order The
fact that no study had been carried out at Suam hardware to empirically ascertain the impact of
globalization on procurement at Africa Finance Corporation presents a knowledge gap. It would
be important to have a case study based on the company due to the significant role the company
has played in development of the Kenyan economy.
The company also presents a unique context functions in the target market in order to attach
themselves effectively to domestic S&T systems. The knowledge exchange is different to
production-related collaboration processes. It involves pre-competitive, yet market-related
knowledge, and thus opens new opportunities for regional innovation systems to acquire globally
relevant technical knowledge. The higher technological level arising from these knowledge
transfer processes between TNCs and the domestic system will not have immediate pay-offs for
domestic companies, but will help to shape indigenous innovation capacity in the mid-term.
Multinational corporations sit at the intersection of production, international trade, and cross-
border investment. MNCs thus have two characteristics. First, they coordinate economic
production among a number of different enterprises and internalize this coordination problem
within a single firm structure. Second, a significant portion of the economic transactions
connected with this coordinated activity take place across national borders. These two attributes
distinguish MNCs from other firms. While many firms control and coordinate the production of
multiple enterprises, and while many other firms engage in economic transactions across borders,
MNCs are the only firms that coordinate and internalize economic activity across national
borders, Laudel,(2021).

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2.4 Gaps identified.
The fact that no study had been carried out at suam hardware to empirically ascertain the impact
of globalization on procurement presents a knowledge gap. It would be important to have a case
study based on the company due to the significant role the company has played in development
of the Kenyan economy. The company also presents a unique context

CHAPTER THREE.
RESEARCH METHODOLOGY.
3.1 Research design.
The Study adopted a descriptive case study designed to obtain pertinent and precise information
on the current status of the phenomena, situations and groups under study, Rachael luck
(2019).This study utilized descriptive case study to do the effect of globalization in suam
hardware
3.2 Target population.
According to Michael mncedici (2019), population is defined as the total collection of elements
under study whereby references have to be made .The total target population of this study was

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51 people,the targeted departments were both procurement,finance,administration,marketing and
public relation department.the preferred sample size of the sturdy were 15 the following formula
were used to account for the sample size

30%of the target population =total sample size


Table 3.2.1 Target population and the sample size
Category Target population Sample size(30%of the
target population)
Procurement 10 3
Finance 7 2
Marketing 20 6
Public relation 10 3
Administration 4 1
TOTAL 51 15

3.3 Sample size and sampling procedures.


3.3.1 Sample size.According to Anup amatya (2017) sample size refers to the number of participants or
observations included in the sturdy.the number is usually represented by n.the size of the sample
influence two statistical properties the precission of our estimates and the power of the sturdy to draw
conclussionsAccording to Nachemias & Nachemias (2019), researchers select sampling unit subjectively
in an attempt to obtain a sample that appears to the representative of the population. In this case, the
chance that the particular unit was selected as a sample depends on the subjective judgment of the
researchers .

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3.3.2 Sampling procedures.
According to yhuang (2018) Sampling Procedure is a portion of the entire group (called a
population) Sampling procedure: choosing part of a population to use to test hypotheses about
the entire population. Used to choose the number of participants, interviews, or work samples to
use in the assessment process. The researcher sought permission from the kitale national
polytechnic and also from suam hardware .This was be done by use of questionnaires to the
respondent by giving questionnaires, the questionnaires were basically filled according to the
research. The respondents were given enough time to respond to the questionnaires before the
questionnaires were submitted to the researcher
3.4 Data collection instruments /tools.
The major method used to carry out research was by use the questioners where the questionares
wer distributed to the procurement staff members of the suam hardware whose task was to
respond to the questions listed out on the questionare as instructed by the researcher
3.4.1 Reliability of Instruments.
Reliability is important as it enabled the researcher to make the necessary adjustments thus
making the data collected have more reliability, Nachemias (2018), states that measuring
instrument contains errors that appear inconsistent from observations to observations during
anyone measurement attempt or that vary each time given is measured by the same instrument. 2
Validity of Instruments Questionnaires were edited to ensure consistency across respondent and
locate omissions as recommended by Bryman and Cramer( 2017).The usual procedure was

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assessing the content validity of a measure to use a professional in a particular field, Mugenda
(2019.)
3.4.2 validity of the instruments.
Validity is concerned with how accurately the data obtained in the sturdy is in line with the
variables selected for the sturdy if the date will be a true reflection of the variables then the ideas
based on such data will be accurate kubai (2019
)By use of a pilot study, the questionnaires for the study was pre-tested before being utilized by
the researcher so as to confirm that the survey tools meet the requirements for reliability
This enabled the researcher to determine whether it measures what it claims to measure (Sanders
et.al, (2019)
Through this pilot study reliability was determined. By use of a pre-test sample, the researcher
will align the reliability of the instrument to its consistent in attaining the study objectives in an
attempt to answer the research questions.
A good questionnaire should have the potential to yield similar results when repeated again and
again. Thus through both pre-test and post-test analysis of the questionnaire the researcher will
be in a position to rectify and reframe the research items in the questionnaires as to obtain the
expected data and intended results when applied in the main study (Sekaran,2019). This in turn
ensured that the validity and reliability of the research Instruments was observed accordingly and
tha t Before processing the responses, data preparation were done on the completed
questionnaires by editing, coding, entering and cleaning the data. Data collected were analyzed
using descriptive statistics tabulations in the analysis. The descriptive statistical tools helped in
describing the data and determining the respondents’ degree of agreement with the various
statements under each factor. Data was analyzed by use of descriptive method such as mean,
weighted averages and percentages and this was represented in form of tables, graphs and charts.
3.5 Data analysis procedure and presentation.
Data analysis and presentation chapter analyses and presents data collected from a
research .some of the mojor issues discussed in this section includes the response rate
demographic response rate and the main research findings which are discussed in details
Before processing the responses, data preparation were done on the completed questionnaires by
editing, coding, entering and cleaning the data. Data collected were analyzed using descriptive
statistics tabulations and were used in the analysis. The descriptive statistical tools helped in
describing the data and determining the respondents’ degree of agreement with the various
statements under each factor. Data was analyzed by use of descriptive method such as mean,
weighted averages and percentages and this was represented in form of tables, and charts. This
chapter presents the interpretation and presentation of the findings obtained from the field. This
chapter presents the background information of the respondents , findings of the analysis based
on the objectives of the study. Descriptive statistics was used to discusses the findings of the
study .The study targeted a sample of51 respondents from which 15 filled and returned the

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questionnaires making a response rate of 75%., this response rate was satisfactorily to make
conclusions for the study

CHAPTER FOUR.

FINDINGS, DATA ANALYSIS, CONCLUSSIONS AND


RECOMMENDATIONS.
4.1 Data on response rate.

This chapter presents the interpretation and presentation of the findings obtained from the field.
This chapter presents the background information of the respondents , findings of the analysis
based on the objectives of the study. Descriptive statistics was used to discusses the findings of
the study .The study targeted a sample of 36 respondents from which 30 was filled in and

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returned the questionnaires making a response rate of 83% , this response rate was satisfactorily
to make conclusions for the study

Figure 4.1.1

The respondents were asked to indicate their gender. Figure 4.1.1 shows that majority of the
respondents indicated that they were males 60%while 40% indicated that they were females. This shows
that the department was dominated by males.

Table 4.1.2 age bracket

Age frequency percentage

18-28yrs 1 6

29-39yrs 17 50

39-48yrs 7 27

49-58yrs 10 10

59and above 6 7

Total 51 100
The respondents were asked to indicate their ages. Table 4.1.2 shows that majority of the respondents
were age 29-39 years of age 50%. 27% were aged between 39-48 years, 10% were aged between 49-58
years, 7% were aged 59 and above and 6% were aged between 18- 28years.This shows a predominantly
young workforce.

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Table4.1.3 Levels of education.

Level Frequency Percentage

O level 1 6

Diploma 17 50

Degree 9 37

Masters 23 10

Total 51 100

The study then sought to highlight the respondents’ management position. Table 4.1.3 shows 6%
of the respondents were O Level, 50% of the respondents were diploma, 37% were degree level
and 10% were masters. The distribution shows a pyramid organization structure. This was
expected since managers tend to be fewer than those they manage.
4.2 Analysis and discussion of the findings.

4.2.1Information technology.
The study attempted to answer the question, “what is your level of agreement to the statements
relating to the adoption of global factors of information technology in globalization in
Agency cost is a major deciding factor when suam hardware sources its products outside the
country , it only gets from those countries with similar systems. .This implies that agency cost is
a
major deciding factor when suam sources goods outside the country hence this helps global
financial crisis in globalization in suam, Kenya.
suamdon’t procure goods from countries considered to be
having corrupt systems
Staff can easily access for spot
checks of the supplier’s facility to
ensure they are complying with local
Laws and regulations procurement?” In an attempt to answer this question related data analysis
revealed that the
Availability of online payment platforms had a good impact of Information Technology on
Globalization in suam, Kenya. According to Olson and Gordon 2017) an information system is
an integrated user-machine system for providing information to support operations, management,
Analysis and decision making functions in an organization. From these three definitions, ICT can
Be viewed as the enabling system that facilitate the processing and flow of information as well as
the technologies used in the actual processing that goes on to produce a product or to provide a
Service to customers.

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In an attempt to answer this question related data analysis revealed that the
availability of online payment platforms had a good impact of Information Technology on
Globalization in suam hardware . According to Olson and Gordon (2017) an information system
is
an integrated user-machine system for providing information to support operations, management,
analysis and decision making functions in an organization. From these three definitions, ICT can
Be viewed as the enabling system that facilitate the processing and flow of information as well as
The technologies used in the actual processing that goes on to produce a product or to provide a
Service to customers.

4.1.4 Monetary transmission.

The study attempted to answer the question, what is the level of agreement of the following
related to monetary transmission” the study attempts to answer this question related data
analysis revealed that the rate of 3.6 of the respondents argued that monetary transmission is
Viewed as a source of competitive innovation in globalization in suam, Kenya,
Rebucci(2018), some of the potential effects of financial integration are expected to
weaken the effectiveness of monetary policy in influencing domestic output and inflation,
while others are expected to strengthen it. A decrease in the costs of international asset trading
potentially affects both the demand and the supply side of monetary policy transmission.

4.1.5 The international procedure followed while carrying out procurement


proceedings internationally.

The challenge with low cost country sourcing as eluded by Lanza, ET. al, (2019) is that low-cost
suppliers often do not meet the higher quality standards which are required by multinational
companies. They contend that when promising suppliers were chosen, measures to promote
development such as technical support and continuous process control at the supplier’s chain;
they also aim to establish future procurement footprints in low-cost countries. The
suppliers often do not meet the higher quality standards services and technologies in the value
They contend that when promising suppliers were chosen, measures to promote development
such as technical support and continuous process control at the supplier’s.

4.3 Conclusions of the sturdy.

4.3.1Information technology.

Apparently, there are always potentials of crisis which make the bank endure an insufficiency;
advanced ICT supported by a superior mechanism control is required to make certain that ICT
has achieved the required processes insufficiency; thus, advanced information system supported
by a superior mechanism control is required to make certain that ICT has achieved the required
processes. A review of some related literatures reveals that ICT may essentially affect negatively
banks efficiency and may reduce productivity, Solow (2018).

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4.3.2 Monetary transmission.
Monetary policy transmission through banks has long been noted as one of the key channels for
policy effectiveness. Seminal work by Kashyap and Stein (2017) shows that this lending
channels
differs across players within the banking system of suam Kenya. While lending of small banks
appear to be hit
hly responsive to monetary policy shocks, the same is not true for larger banks.
The main reaps
on for the difference within the population the authors argue
stems from the presum
ed greater ability of large banks to substitute receivable deposits with
other externalsources of funds, so that the shock to the liability side of their balance sheet
from monetary policy is not transmitted to the asset side.

4.3.3 International procurement procedures.


Finally, what can be concluded is that the Kenya Online procurement sector resisted quite
Successfully to the effects to the Global Financial crisis. This may be partly due to the fact that
the sector is not contaminated by toxic assets and partly due to the fact that the lagged effect of
the crisis has curbed its impact and has allowed the online shopping companies to be more
Proactive and take appropriate measures. The expectations of the future are very optimistic
in the sense that the banks are expecting the world to slide out of the crisis completely to
Continue with the gains the sector has had before.

4.4 Recommendations of the sturdy.

The modernization of ICT has set the stage for extraordinary improvement in banking
procedures
throughout the world. Globalization of banking is changing the transmission of monetary policy
Via the lending channel. Our conclusion is that globalization has a deep and pervasive impact on
The transmission of monetary policy. In order to cushion financial systems from crisis, it is
Important to ensure that financial sectors of Africa are regulated effectively to spurt their growth
And prevent them from collapse instigated by phenomena such as the global financial crisis.

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