• Ondieki Rebeccah Miyoko University of Nairobi
  • Dr. Nancy Marika University of Nairobi
  • Dr. Kate Litondo University of Nairobi


Purpose of the study: The purpose of the study was to assess the impact of e-procurement practices on organizational performance in large manufacturing firms in Nairobi County.

Problem statement: In the today’s dynamic global competitive business environment, technology based innovation has turned out to be essential for organizations to furnish their clients with cost-effective total solution and better consumer loyalty with imaginative thoughts and strategies. However, some challenges in e-procurement such as costs owing to the cost needs of setting up such as system key among them; budgeting and costs, change management, as well as need of training and resources has led to a sluggish adoption of the eProcurement practices(Amani, 2015).

The manufacturing sector in Kenya, which is dominated by subsidiaries of multinational corporations, contributes to an average of 9.2% towards the Gross Domestic Product (GDP). In most of the projects undertaken by large manufacturing firms, there is delay in the start of projects and realization of the goals due to delays in procurement process. This causes losses in terms of monetary value and time.

Study methodology: The study used a descriptive research, which involved the measurement, classification, analysis, comparison and interpretation of the data obtained from the study. The target population for the study was 50 large sized manufacturing firms in Kenya where the unit of analyses were procurement managers and procurement supervisors. The study adopted a census approach on all the procurement managers and procurement supervisors in the 50 large manufacturing companies in Nairobi County. Therefore, the total sample size of the study was 100 respondents. Primary data, original data gathered from research subjects was collected using questionnaires. The researcher employed a quantitative approach to data analysis. With regard to the data obtained using standard questionnaires; the researcher used SPSS software for analysis.

Results of the study: Regression analysis results indicated that E-bidding (β=.124,p=0.002, E-tendering (β=.111, p=0.005) E-purchasing and performance, the regression analysis revealed a positive and significant relationship (β=.089, p=0.023) E-sourcing (β=.125, p=0.004) were positively and significantly related with performance pf large manufacturing firms in Nairobi County.

Conclusion: The study concluded that large manufacturing firms in Nairobi County adopt various E-procurement practices which includes; E-bidding, E-tendering, E-purchasing and E-sourcing as a way of improving their financial performance.

Recommendations: The study recommends that the large manufacturing should adopt E-procurement practices owing to their immense benefits to the performance of the firm which include; improved financial performance, timely submission of purchase requisitions by department for approval, transparent price information, reduced inbound lead time and efficiency and increased procurement volumes processed. The study further recommends that large manufacturing firms contemplating adopting E-procurement practices should integrate their systems since lack of system integration is a major challenge to E-procurement.

Keywords: E-Procurement Practices, Performance, Large Manufacturing Firms & Nairobi County.

Author Biographies

Ondieki Rebeccah Miyoko, University of Nairobi

Postgraduate Candidate, School of Business, University of Nairobi

Dr. Nancy Marika , University of Nairobi

Lecturer, School of Business, University of Nairobi

Dr. Kate Litondo, University of Nairobi

Lecturer, School of Business, University of Nairobi


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How to Cite
Miyoko, O. R., Marika , D. N., & Litondo, D. K. (2019). E-PROCUREMENT PRACTICES AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN NAIROBI COUNTY. African Journal of Emerging Issues, 1(3), 21 - 44. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/18