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European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

EFFECT OF THE ADOPTION OF ELECTRONIC PROCUREMENT


PRACTICES ON PERFOMANCE OF SUPERMARKETS IN KISUMU
CITY, KENYA


Andolo Dan Ojijo, (MBA)
Maseno University/ Kenya






Abstract:
Electronic procurement concept emerged in the mid-1990s and it has long
been a central doctrine in the practice of procurement. It is basically a tool
that enables procurement activities such as sourcing,
ordering,commissioning, receipting and making payment. Procurement
scholars have reaffirmed that firms that implement a total electronic
procurement orientation are likely to be more successful. Despite this, some
companies have failed to implement the electronic procurement concept
because its adoption and implementation is costly. However, little has been
documented on Kenyas retail supermarkets with regard to the effect of its
adoption on the performance consequences. Supermarkets play a significant
role in Kenyas economy. According to Kenya Economic Survey 2012, they
generated employment to 12,000 Kenyans out of the 520,000 new jobs in
the labour market. Moreover, there have been reports of supermarkets facing
market challenges resulting to low returns and closure. In the year 2011 their
performance declined to 7.3 compared to 8.0 in 2010 and this may be
attributed to competitive pressures arising from poor adoption of electronic
procurement practices. The purpose of this study was to assess the effect of
the adoption of electronic procurement on the performance of supermarkets
in Kisumu city. Specifically, the study was to establish the electronic
procurement practices used by supermarkets in Kisumu. The study applied
descriptive survey design. The target population was 280 employees out of
which a sample of 164 was drawn and 93 responded. Primary and secondary
data were used. The data was analyzed using descriptive statistics. The study
revealed that e-information is the most commonly used practice and e-
auctioning is the worse.

Key Words: (Procurement, Electronic, Performance, Supermarket)
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Introduction:
Electronic procurement Concept emerged in the mid-1990s and it has long
been a central doctrine in the practice of procurement.It is basically a tool
that enables procurement activities such as sourcing, ordering,
commissioning, receipting and making payment. Electronic procurement (E-
procurement) is the application of Internet technology in material and service
procurement. It involves the use of various forms of Information Technology
(IT) to automate and streamline the procurement process, improving
efficiency and transparency, thereby reducing the cost of operation within
and between business parties (De Boer et al 2002). Procurement scholars
have reaffirmed that firms that implement a total electronic procurement
orientation are likely to be more successful.
Electronic Procurement practices are strategies that may be followed when
making company purchasing decisions. These practices may include e-
tendering, e-ordering,e-information,e-auctioning and e-invoicing. One of the
most widely discussed procurement best practices is the use of e-
procurement. E-procurement is an electronic method of purchasing supplies
and services. According to Croom and Brandon-Jones (2004), e-procurement
refers to the use of Internet-based (integrated) information and
communication technologies (ICTs) to carry out individual or all stages of
the procurement process including search, sourcing, negotiation, ordering,
receipt, and post-purchase review. According to the Chartered Institute of
purchasing & Supply,e-Procurement is about using the Internet to operate the
transactional aspects of requisitioning, authorizing, ordering, receipting and
payment processes for the required services or products (CIPS, 2009).
According to Davila, Gupta & Palmer, 2003 e-procurement is any ICT
designed to facilitate the acquisition of goods by a commercial or a
governmental organization over the Internet. E-Procurement has the potential
to provide cost and time reductions when ordering from suppliers, and helps
to achieve a well-integrated supply chain. Some of the benefits are the cost
reduction in goods, services and order processing, better transparency to the
suppliers and electronic commerce development (Pereira, Alturas, 2007). A
successful e-Procurement system is required to have suppliers and buyers
willing and able to trade electronically.

Main Text:
The purpose of this study was to determine the effect of adoption of
electronic procurement practices on performance of Supermarkets in Kisumu
City, Kenya. Specifically, the study sought to establish the Electronic
procurement practices used by supermarkets in Kisumu City.
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Review of Theoretical Literature
The concept of Electronic Procurement
Information and communication technologies are changing the way
organizations do business, particularly the adoption of e-business and e-
commerce. The scope of e-business includes information exchange,
commercial transactions and knowledge sharing between organizations
(Croom, 2005), whereas e-commerce focuses only on commercial
transactions (Cullen and Webster, 2007). Some of the technologies
associated with e-commerce include websites, e-mail, extranets, intranets
and electronic data interchange (EDI) (Mclvor and Humphreys, 2004). E-
procurement refers to all of the connective processes between companies and
suppliers that are enabled by electronic communication networks (Meier and
Stormer, 2009).Harink (2003) defines e-procurement as using internet
technology for procurement process.
Definitions of e-procurement vary across literature in the field. E-
procurement has been defined as the use of information technologies to
facilitate B2B purchase transactions for materials and services (Wu et al.,
2007). Different forms of technology are appropriate for different
procurement activities; six forms of e-procurement have been classified (de
Boer et al., 2002), including e-ordering/e-Maintenance Repair Operate
(MRO), web-based enterprise resource planning (ERP), e-sourcing, e-
tendering,, e-reverse auctioning/e-auctioning and e-informing.
E-Procurement provides the benefits in several ways. First, the ability to
access online catalogs allowing buyers to view a wider spectrum of offerings
and prices from several different companies, and through these catalogs,
organizations can develop programs that will automatically order when
certain criteria are met. Second, an electronic approval cycle negates the
need to print several copies of orders or contracts and allows for a more
rapid, orderly flow that can be set up even if key people are away. The
ability to track where the procurement is in the process, for buyer and seller
alike, allows for the instant ability to go right to the point of stoppage, rather
than spend time looking for it. Third, the ability to pay electronically ensures
prompt payment without all of the invoices and receiving documents that
traditionally burdened the process. Finally, an automated interface allows the
companies with other e-systems to synchronize data with procurement as a
check and balance and gives managers the information they need (Mc.Kie,
2001:99-100). While these benefits center on the processes, e-Procurement
enhances a key benefit that arises from the personnel who accomplish the
procurement.
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Another innovation e-Procurement brings to the table is employee-centered
purchasing. This eliminates the need for a purchasing professional to ensure
all rules and regulations are being followed. In employee-centered
purchasing the people who know what the organization needs can
conveniently and effectively order the parts without worrying about breaking
rules or policies. E-Procurement systems incorporate the rules and policies of
the organization into the system and will not allow personnel to buy outside
of the systems rulebook. While this could hinder the procurement process if
a good rulebook is not developed, it allows for most purchasing situations an
organization could face. In the end it should prevent the purchasing
department itself from becoming a procurement process bottleneck
(Mc.Kie, 2001:105).
The ultimate objective of e-procurement systems is to provide electronic
services (e-services) that facilitate procurement process. By automating
processes and workflows associated with purchasing, the firm expects to
increase the productivity of its purchasing agents, lower purchase prices of
different types of goods and services, streamline the information flow,
business processes, and workflows involved in purchasing, eliminate
maverick buying (i.e., buying from unauthorized vendors), reduce order
fulfillment and processing times, reduce the number of suppliers the firm is
dealing with, streamline invoice reconciliation and dispute resolution, reduce
the administrative processing cost per purchase order, integrate budgetary
controls into the procurement process, minimize human errors in the buying
and shipping processes, and monitoring and regulating buying behavior
(Turban et al., 2005).
Harink(2003) identifies e-procurement forms for automating different steps
in procurement process. E-sourcing, e-tendering, e-reverse auctioning, e-
contract management, e-ordering, and web-oriented ERP are the identified
forms of e-procurement.
Prior to order placement, the use of e-sourcing reduces the time taken to find
suppliers of goods or services, increasing the economies of supplier search
(Evans & Wurster,2001; Cox et al. 2002a, 2002b; de Boer et al. 2002;
Narasimhan et al. 2003; Presutti,2003; Harink,2003; Subramaniam & Shaw,
2004; Croom & Brandon-Jones, 2005). In addition, e-tendering helps to
simplify the tender process (de Boer et al. 2002). Ereverse auctions can
significantly reduce processing costs through the reduction in cycle time
(Emiliani, 2000; Smeltzer & Carr, 2001; Cox & Watson, 2004; Wagner &
Schwab, 2004) and negotiation (Jap, 2002). Post purchase, there is an
increase in the speed and accuracy of data collection (Croom, 2000).
However, the vast majority of transaction savings accrue from improvements
to the purchase process itself. These savings are realised through reduced
work in process (Cox, 1999; Zsidisin & Ellram, 2001); increased automation
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

of processes (Kalakota & Robinson, 1999; Croom, 2000; Deeter-Schemelz et
al. 2001; Barnes et al. 2002); reduced paperwork and improved accuracy
(Lancioni et al. 2000; Neef, 2001; de Boer et al. 2002); process re-design
and elimination of tasks, reduced inventory, consolidated invoices and
reduced transmission errors (Croom & Johnston, 2003). Most authors appear
in agreement that e-procurement implementation results in improvements to
order cycle time (Croom, 2000; Turban et al. 2000; Zsidisin & Ellram, 2001;
Harink, 2003). Cycle time may be reduced as a result of faster product
search, fewer input errors, automatic authorisation within pre-set limits,
faster delivery, fewer problems with invoice consolidation, and quicker
payment to suppliers (Lancioni et al. 2000). This in turn creates the potential
for reducing inventory levels and thus minimising working capital (Martin &
Hafer, 2002; Presutti, 2003). However, it is worth noting that savings figures
in the literature are generally anecdotal and in some cases costs of
implementation may outweigh the potential advantages of e-procurement
Research by Gebauer et al. (1998) has described procurement practices
(PPR) and how these positively affect procurement performance (PP) in
terms of cost, time, satisfaction, quality, stock, and value. Masterman (1992)
provide good background to some procurement work as traditional
procurement route came under closer scrutiny other procurement routes
developed and consequently means for selection were considered. In
addition, he has defined various procurement routes if characteristics of
procurement route can be identified and the impact of these characteristics
upon performance can be measured, then and only then can the selection of
specific procurement path serve a definite purpose.
Review of empirical literature.
Chang and Wong (2010), examined firm motivations for adopting e-
procurement for their operations in the marketplace and measured their
performance to assess its benefits. Trust was considered as a moderating
variable between the relationship of e-procurement adoption and e-
marketplace participation. A two-stage analysis, including both a qualitative
and quantitative approach, was applied. Hypotheses were developed and a
model constructed. A research questionnaire was developed and distributed
followed by data analysis and testing. The results showed that firms that
adopted e-procurement were more likely to participate in the e-marketplace
and that the firm's performance was enhanced after such participation. Trust
was shown to have a moderating effect upon firm willingness to adopt e-
procurement when it was considering participation in the e-marketplace.
Wendy van der Valk & Wynstra (2012).empirically tested a theory
specifying distinct ideal interaction patterns for four business-to-business
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

service types, which differ with regard to how they are used by the buying
company. The ideal interaction patterns were conceptualized as
configurations of five different interaction dimensions: the key objectives in
the interaction, the critical capabilities on either side of the relationship, the
type of functional involvement from the buying firm and the key issues in
the buyerseller dialogue. Using a combination of quantitative and
qualitative data from 23 cases of service exchange at six buying
organizations in Netherlands a test of whether similarity between the ideal
interaction pattern and an actual, observed interaction pattern is a continuous
necessary condition for successful ongoing service exchange or not was
carried out. The findings suggested for each of the four service types that, in
order for a service exchange to be successful, buying companies should
design their interactions with their service providers to closely resemble the
specified ideal pattern for that specific service type.
A study by Kardaras et al. (2000) in Greecefound out that, a large number of
organizations were using Internet to provide information about products and
services such as prices, availability and new features. Another survey study
by Poon et al. (1999) found that many firms use e-mail as a communication
tool because it could enable asynchronous and multimedia communication,
and it is more cost effective. In fact, most organizations surveyed by Poon et
al. (1999) were using the Internet for communication.
Mackay, Gemino, Igbaria and Reich (2001) in an empirical research in
British Columbia found that the majority of the retail firms use websites to
share information with suppliers as well as clients but only a handful of them
have adopted advanced e-information such as online retailing and
information sharing with their staff. This report is supported by a separate
study by Haynes et al. (1998) where it was discovered that Internet usage by
most of the companies is still relatively low. Besides, a survey by Mackay et
al. (2001) also shows that online transactions such as e- ordering,e-sourcing
and e-invoicing are preferred to be used by retail firms. From the above
findings, the most commonly used Internet applications were found to be e-
mail and websites. On the other hand, there was evidence that most
businesses especially the SMEs are not keen to use Internet to access their
suppliers, contrary to the opinions of many researchers who believe that
Internet could offer a cost-effective procurement process.




European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Research Methodology

Research Design
The study utilized the descriptive survey design.
Study Area
The study area was in Kenya and conducted in Kisumu City Kenyas third
largest city. The city lies in Nyanza province found in western Kenya on the
western shores of Lake Victoria.
Target Population
The population of the study comprised 280 employees of four major retail
supermarkets in Kisumu who were directly involved in the procurement
process.
Sample size
A sample size of 164 respondents was used. This was arrived at as follows.
n=N/[1+N(e)] (Yamane, 1967).
n=280/[1+280(0.05)]=164
where:
n = Sample size
N = Population
e
2
= Level of precision (at 95% confidence level)
Data Type and Sources
The study used both primary and secondary data. Primary data was obtained
through a semi- structured questionnaire and secondary data obtained
through document review.
Reliability Test for Data collection instrument
A pilot study was carried out on a small number of respondents to detect any
weaknesses in the design and instrumentation. Since the study involved self-
administered type of data collection instruments, questionnaires were revised
to reduce cases of ambiguity.
Questionnaires were then tested for content validity to establish quality of
instrument. These procedures involved pilot testing on the same population
which was not part of the sample. There was no variation from the expected
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

result and the instrument was considered to be valid. Checks were also
performed to ensure that sample responding employees were representative
of the broader population. First, the size characteristics of the sample were
compared to the overall population. The distribution in terms of the
categories (Top branch management, Middle level management and lower
cadre employees) who were directly involved in procurement were given
similar weight.
The reliability analysis was conducted on all the multi-items scales to check
the internal consistency of the scales and constructs. In this view, the study
adopted a cut off 0.60 Cronbachs coefficient which was recommended by
Bagozzi and Yi (1988) as a good indicator of reliability.
Reliability test for e-information ,e-ordering,e-tendering,esourcing,e-
invoicing and e-auctioning were (Alpha values of 0.896, 0.80,
0.720,0.713,0.642 and 0.602) respectively. Although some alpha value was
relatively moderate, they are nonetheless acceptable since alpha values are
above the threshold of 0.60 (Bagozzi & Yi, 1988). The reliability results
have been presented in table 3.7.3 below.
Table 1: Analysis of Internal Consistency.

Model No. of
Items
Cronbachs alpha
E-information 5 0.896
E-ordering 2 0.801
E-tendering 2 0.720
E-sourcing
Einvoicing
E-auctioning
4
4
5
0.713
0.642
0.602
Source: Field Survey, 2013
Validity Test for Data collection instrument
Validity of a questionnaire refers to the extent to which it measures what it
claims to measure (Mugenda, 2003). It is the degree to which results
obtained from the analysis of the data usually represents the phenomena
under study. The research instruments were exposed to experts review for
validity checks.
Data Analysis and Presentation
Qualitative data was analyzed using descriptive statistics such as mean,
standard deviation.Correlation analysis was also used which helped to obtain
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

a measure of the degree of association of two variables. This approach was
deemed appropriate since descriptive methods tend to be stronger in validity
but weak in reliability whereas inferential statistics tend to be stronger in
reliability but weak in Validity (Kibwage, 2002 & Odondo, 2007).
Moreover, Babbie (1986) indicated that the use of both methods aids the
researcher in gaining higher degree of reliability and validity.
During and after data collection, care was taken to check the questionnaires
that were filled for consistency and completeness. They were then coded and
data cleaned to suit SPSS Computer package that was used in the analysis.
The data was eventually presented using tables, graphs and charts. All data
were analyzed at a significance level of 95% with the help of computer
software package of SPSS Software of version 20.0
RESULTS AND DISCUSSION
Demographic Characteristics of the Sample
The study targeted 164 sample respondents but only 93 questionnaires were
filled and successfully returned. A majority of the respondents were aged
between 26-35 years which was 49.5% of the total respondents. The least
responses came from those who were in the age bracket of 45-55 years. The
questionnaires received were completed to a high standard and were found
useable as they were complete and consistent. This information was
summarised in the figure 4.1.1 below:














Table 2: Analysis of age bracket of respondents

Age
bracket Frequency Percent
Valid
Percent
Cumulative
Percent
18-25
years
17 18.3 18.3 18.3
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26-35
years
46 49.5 49.5 67.7
36-45
years
29 31.2 31.2 98.9
45-55
years
1 1.1 1.1 100.0
Total 93 100.0 100.0
Source: Survey data, 2013


Table 3: Analysis of gender

Gender Frequency Percent
Valid
Percent
Cumulative
Percent
Male 54 58.1 58.1 58.1
Female 39 41.9 41.9 100.0
Total 93 100.0 100.0
Source: Survey data, 2013
The figure 4.1.2 above showed that 58.1% of the respondents were males
while 41.9% were females.



Table 4: Analysis of respondents level of education

Level of
Education
Frequenc
y
Percen
t
Valid
Percent
Cumulativ
e Percent
'O'
Level
39 41.9 41.9 41.9
Diplom
a
46 49.5 49.5 91.4
Degree 8 8.6 8.6 100.0
Total 93 100.0 100.0
Source: Survey data, 2013
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

From the figure above, 46 out of 93 employees in the four major
supermarkets in Kisumu city are diploma holders. This makes 49.5% of the
respondent population. O level certificate holders were 39 which is 41.9%
and finally the degree holders were the least (8) which translated to 8.6% of
the total respondent population. This shows that the management of
supermarkets in Kisumu city have preference for O level certificate holders
as compared to diploma and degree holders.
Table 5: Analysis of respondents years of service

Years of
service
Frequen
cy
Perce
nt
Valid
Percen
t
Cumulativ
e Percent
1-5 years 29 31.2 31.2 31.2
6-10 years 51 54.8 54.8 86.0
11-15 years 12 12.9 12.9 98.9
16-20 years 1 1.1 1.1 100.0
Total 93 100.0 100.0
Source: Survey data, 2013

The table above indicates that 54.8% of the respondents have served in the
supermarkets for six to ten years while 1.1% of them have worked for 16-20
years,12.9% said that they have worked for 11-15 years while 31.2%
revealed that they have worked for a duration of between 1-5 years. This
trend indicated that the supermarkets management in Kisumu tend to lay off
their workers who have served for more than twenty years.
Electronic Procurement Practices used by Supermarkets in Kisumu
Before the researcher sought to establish the e-procurement practices
adopted by supermarkets in Kisumu to address objective 1, a question was
asked whether all the four major supermarkets have adopted electronic
procurement in their procurement function and gathered the data as indicated
in the table below.
Table 6: Analysis of electronic procurement adoption

Adopted Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 57 61.3 61.3 61.3
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

No 36 38.7 38.7 100.0
Total 93 100.0 100.0
Source: Survey data, 2013

It emerged from the survey that only 61.3% of the respondents accepted that
their supermarkets had adopted electronic procurement practices while
38.7% of them said they had not adopted e-procurement practices. The
survey further revealed that the 36 respondents (38.7%) who said that their
supermarkets had not adopted e-procurement were employees of two out of
four supermarkets where the survey was carried out. These results were
further demonstrated by Table 4.2.2 below:



Table 7: Descriptive Statistics of E- procurement adoption

Adopted Frequency Percent
Yes 57 61.3
No 36 38.7
Total 93 100.0
Source: Survey data, 2013.

When respondents from the supermarkets that had adopted e-procurement
were then asked about the procurement practices that their supermarkets
engage in, they identified e-tendering, e-sourcing, e-invoicing, e-auctioning,
e-ordering and e- information. Their opinion was further sought on the
frequency of use of these listed procurement practices in their firms, they
responded as shown in the table below.

Table 8: Analysis of frequency of use of E-Tendering

E-Tendering
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Never 36 38.7 38.7 38.7
Occasionally 12 12.9 12.9 51.6
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Almost every
time
28 30.1 30.1 81.7
Every time 17 18.3 18.3 100.0
Total 93 100.0 100.0
Source: survey data, 2013

38.7% of the respondents revealed that those supermarkets which they work
in had not adopted the use of e-tendering in the procurement function of their
supermarkets. 18.3% of them agreed that they actively use e-tendering. The
rest said that they either use it occasionally (12.9%) or they use it almost
every time (30.1%) as shown in the table 4.2.3 above.

The data collected with respect to the frequency of use of e- sourcing as a
procurement practice showed that 38.7% of the respondents said that they
have never used it in their daily procurement function, 16.1% said that they
use it occasionally and 30.1% said they use it almost every time while 15.1%
agreed that they use it every time as shown in the table 4.2.4 below.
Table 9: Analysis of frequency of use of E-sourcing

E-Sourcing Frequency Percent
Valid
Percent
Cumulative
Percent
Never 36 38.7 38.7 38.7
Occasionally 15 16.1 16.1 54.8
Almost every
time
28 30.1 30.1 84.9
Every time 14 15.1 15.1 100.0
Total 93 100.0 100.0
Source: survey data, 2013

The survey data revealed that of the 93 respondents who filled in the
questionnaire,36 of them accounting for 38.7% said that the supermarkets
they work in have never adopted the use of e-invoicing while 32 of them
accounting for 34.4% said that they use it almost every time. The rest
(26.9%) used e- invoicing occasionally. This is shown in table 4.2.5.
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431









European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

Table 10: Analysis of frequency of use of E-invoicing

E-Invoicing Frequency Percent
Valid
Percent
Cumulative
Percent
Never 36 38.7 38.7 38.7
Occasionally 25 26.9 26.9 65.6
Almost every
time
32 34.4 34.4 100.0
Total 93 100.0 100.0
Source: Survey data, 2013
When the respondents were asked about their views on the frequency of use
of e-auctioning in the retail supermarkets where they work, it emerged a
majority of them(63.4%) said this practice has never been adopted. It also
emerged that even those that have adopted it do not use it every time but
rather use it either occasionally (35.5%) or almost every time (1.1%)
depicting that this procurement practice is uncommon with the supermarkets
in Kisumu as indicated in the table 4.2.6 .
Table 11: Analysis of frequency of use of E- auctioning

E-Auctioning Frequency Percent
Valid
Percent
Cumulative
Percent
Never 59 63.4 63.4 63.4
Occasionally 33 35.5 35.5 98.9
Almost every
time
1 1.1 1.1 100.0
Total 93 100.0 100.0
Source: survey data, 2013
Table 12: Analysis of frequency of use of E- ordering

E-Ordering Frequency Percent
Valid
Percent
Cumulative
Percent
Never 36 38.7 38.7 38.7
Almost every
time
30 32.3 32.3 71.0
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Every time 27 29.0 29.0 100.0
Total 93 100.0 100.0
Source: survey data, 2013

In order to establish the above, respondents were asked their frequency of
use with respect to e-ordering .The responses were that 38.7% of them said
they never use it while 29.0% translating to 27 respondents said they use it
every time.
Finally when they were asked on how often they use e-information in the
procurement function in their supermarkets, they responded and their
responses were summarised as shown in the table 4.2.8 below:

Table 13: Analysis of the frequency of use of E-information

E-Information Frequency Percent
Valid
Percent
Cumulative
Percent
Never 36 38.7 38.7 38.7
Almost every
time
25 26.9 26.9 65.6
Every time 32 34.4 34.4 100.0
Total 93 100.0 100.0
Source: survey data, 2013
Summary statistics of E-Procurement Practices used by Supermarkets
When a summary analysis was done on the above electronic procurement
practices by comparing their means and standard deviations, it clearly
emerged that e- information is the most commonly used practice by
supermarkets in Kisumu with a mean of 2.599 and standard deviation of
1.31379 followed by E-ordering with a mean of 2.5161 and standard
deviation of 1.27359 then e-tendering ,e-Sourcing, e-invoicing and finally e-
auctioning in that order with means of 2.2796, 2.2151,1.9570 and 1.3763
respectively. These results are consistent with previous studies for example
Chang and Wong, 2010, who identified E-sourcing, E-ordering as major E-
procurement practices in the manufacturing organizations. It also concurs
with the findings of the study by Kardaras et al. (2000) in Greece which
found out that, a large number of organizations were using Internet to
provide information about products and services such as prices, availability
European Scientific Journal ISSN: 1857 - 7881 (Print) e - ISSN 1857- 7431

and new features. A survey by Mackay et al. (2001) also shows that online
transactions such as e-ordering,and e-tendering are preferred to be used by
retail firms which are consistent with the findings of this study.These are
summarised in the table 4.3.1 below:
Table 14: Summary table of means and standard deviations of e-
procurement

Descriptive Statistics
N Minimum Maximum Mean
Std.
Deviation
E-Information 93 1.00 4.00 2.5699 1.31379
E-Ordering 93 1.00 4.00 2.5161 1.27359
E-Tendering 93 1.00 4.00 2.2796 1.16438
E-Sourcing 93 1.00 4.00 2.2151 1.12143
E-Invoicing 93 1.00 3.00 1.9570 .85864
E-Auctioning 93 1.00 3.00 1.3763 .50892
Source: survey data, 2013
Summary of the Findings
The objective was to establish the Electronic procurement practices used by
supermarkets in Kisumu City. Descriptive statistics were computed to
establish the most prevalent electronic procurement practice. The study
revealed that e- information is the most commonly used practice by
supermarkets in Kisumu with a mean of 2.599 and standard deviation of
1.31379 followed by E-ordering with a mean of 2.5161 and standard
deviation of 1.27359 then e-tendering ,e-Sourcing, e-invoicing and finally e-
auctioning in that order with means of 2.2796, 2.2151,1.9570 and 1.3763
respectively.
Conclusion of the Study
Finally, that e-information is the most preferred procurement practice by
supermarkets in Kisumu followed by e-ordering then e-sourcing in that order
and the least preferred one was e-invoicing with means of 2.6559, 2.8602,
2.9462, and 3.1075 respectively.

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