EFFECT OF STRATEGIC SOURCING IN ENHANCING EFFICIENCY IN

GOVERNMENT INSTITUTIONS: A STUDY OF KISUMU MAIN PRISONS,

KISUMU COUNTY

BY

MICHAEL OKEYO SUNA

A RESEARCH PROJECT SUBMMITTED IN PARTIAL FULLFILMENT OF

THE REQUIREMENTS FOR THE AWARD OF DEGREE IN BUSINESS
MANAGEMENT (PURCHASING AND SUPPLIES MANAGEMENT OPTION)
OF KISII UNIVERSITY

JUNE 2016
DECLARATION AND RECOMMENDATION

Declaration by the student

I declare that this is my own original work that has never been presented to any
institution of higher learning.
Sign

Date....

Name:MICHAEL OKEYO SUNA

CBP14/10386/14

RECOMMENDATION
This research project has been submitted to Kisii University with my approval as the
candidates research project supervisor

Sign

Date....

Name: MR. JAMES MAENGWE

Supervisor

This research project has been submitted for examination with my approval as
thedirector, Kisii University, Kisumu campus
Sign: ......................................

Date: ..............................................

Dr. STEPHEN OLUOCH

DIRECTOR
KISII UNIVERSITY, KISUMU CAMPUS

DEDICATION
I dedicate this research project to my parents who contributed positively to ensure that
this work is a success and not forgetting my sponsor-The Kenya Prisons, who gave me
the necessary financial, psychological and material support. I equally want to thank my
dear wife, Mrs. Josephine Suna, my children; Velma Akinyi, Collins Awuor, and Melvin
Atieno for their inspirations. To my college mates, its a big thank you.

ACKNOWLEDGEMENT
It is my greatest pleasure to acknowledge the effort of my supervisor Mr. James
Maengwe for his ever available instrumental help towards the development and
completion of this research. His valuable guidance is of no cost. My family, my siblings,
for a very humble time extended to me while a way doing my studies. My gratitude also
goes to Kisii University, Kisumu Campus for the conducive environment given to me
while conducting this research. Also I take this chance to appreciate my friends and my
classmates for their constant encouragement and aid.

ABSTRACT
This research focuses on the effect of strategic sourcing in enhancing efficiency in
government institutions: a study of Kisumu main prisons, Kisumu County. The specific
objectives of the study are: To establish the effect of supply chain management on the
procurement efficiency at Kisumu Main

Prisons, to investigate the effect of e-

procurement on procurement efficiency at Kisumu Main Prisons and to examine the

effect of supplier relationship management on procurement efficiency at Kisumu Main
Prisons. The study adopted descriptive case study research design to describe the effects
of strategic sourcing in enhancing efficiency at Kisumu main prisons, in Kisumu County.
The target population and sample was from Procurement staff at Kisumu main prisons
which consisted of 16 employees. The study adopted census sampling technique in
selecting all the procurement staff to participate in the study. The study used field tested
questionnaires to collect data for the study from the respondents. Quantitative analysis
techniques which involved descriptive statistics were used to analyze the quantitative
data. The qualitative data was analyzed by the use of document analysis and the findings
presented by use of tables and pie charts. The study found out that, although strategic
sourcing was moderately applied, the use of strategic sourcing significantly improved
efficiency of supply chain management of disposal management of assets, improved eprocurement efficiency, and improved supplier relationship management. The study
recommends; government institutions should conduct organizational scanning in the
disposal of assets, establishing most appropriate strategic sourcing tools that could be
used to enhance efficiency in supply chain management and implementing them
accordingly. Government institutions should create an enabling environment for
improved supplier/buyer relationship management which could lead to innovations that
enhances adoption of various elements of strategic sourcing.

TABLE OF CONTENTS
DECLARATION AND RECOMMENDATION.................................................................ii
DEDICATION....................................................................................................................iii
ACKNOWLEDGEMENT..................................................................................................iv
ABSTRACT........................................................................................................................v
TABLE OF CONTENTS....................................................................................................vi
LIST OF TABLES............................................................................................................viii
LIST OF FIGURES............................................................................................................ix
LIST OF ABBREVIATIONS..............................................................................................x
OPERATIONAL DEFINITION OF TERMS.....................................................................xi
CHAPTER ONE................................................................................................................1
INTRODUCTION TO THE STUDY...............................................................................1
1.1 Introduction....................................................................................................................1
1.2 Background of the study................................................................................................1
1.3 Statement of the problem...............................................................................................4
1.4 Objectives of the study..................................................................................................5
1.5 Research questions.........................................................................................................5
1.6 Significance of the study...............................................................................................6
1.7 Limitation of the study...................................................................................................6
1.8 Scope of the study..........................................................................................................6
CHAPTER TWO...............................................................................................................7
LITERATURE REVIEW..................................................................................................7
2.1 Introduction....................................................................................................................7
2.2 Empirical Literature Review..........................................................................................7
2.3 Critical literature review and gaps to be filled by the study........................................13
2.4 Summary of gaps.........................................................................................................15
2.5 Conceptual theoretical framework...............................................................................16

CHAPTER THREE.........................................................................................................17
RESEARCH DESIGN AND METHODOLOGY.........................................................17
3.1 Introduction..................................................................................................................17
3.2 Research Design..........................................................................................................17
3.3 Target Population.........................................................................................................17
3.4 Sample and Sample Design.........................................................................................17
3.5 Data Collection Instrument..........................................................................................18
3.6 Data Analysis Method and Presentation......................................................................19
CHAPTER FOUR...........................................................................................................20
DATA ANALYSIS, PRESENTATION AND INTERPRETATION.............................20
4.1 Introduction..................................................................................................................20
4.2 Presentation of findings...............................................................................................20
4.4 Summary of data analysis............................................................................................33
CHAPTER FIVE.............................................................................................................34
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION...........34
5.1 Introduction..................................................................................................................34
5.2 Summary of findings...................................................................................................34
5.3 Conclusions..................................................................................................................35
5.4 Recommendations........................................................................................................36
5.5 Suggestions for further studies....................................................................................36
REFERENCES..................................................................................................................37
APPENDICES
Appendix I: Letter authority
Appendix II: Questionnaire
Appendix III: Work plan
Appendix IV: Budget
7

LIST OF TABLES
Table 4.1: Gender of respondents......................................................................................20
Table 4.2: Age of respondents............................................................................................22
Table 4.3: Experience of the respondents..........................................................................23
Table 4.4: The effects of supply chain management on procurement efficiency..............25
Table 4.5: Relationship between supply chain management and procurement efficiency 26
Table 4.6: Effect of e-procurement on procurement efficiency.........................................28
Table 4.7: The factors that affect the implementation of E-procurement..........................29
Table 4.8: How the organization ensured supplier relationship management...................31
Table 4.9: Rating supplier relationship management at Kisumu Main Prisons.................32

LIST OF FIGUR
Figure 2.1: Conceptual framework.................................................................................16Y
Figure 4.1: Gender of respondents.....................................................................................21
Figure 4.2: Age of respondents..........................................................................................22
Figure 4.3: Experience of the respondents........................................................................24
Figure 4. 4: The effects of supply chain management on procurement efficiency............25
Figure 4.5: Relationship between supply chain management and procurement efficiency
...........................................................................................................................................27
Figure 4.6: Effect of e-procurement on procurement efficiency.......................................28
Figure 4.7: The factors that affect the implementation of E-procurement........................30
Figure 4.8: How the organization ensured supplier relationship management..................31
Figure 4.9: Rating supplier relationship management at Kisumu Main Prisons...............32

LIST OF ABBREVIATIONS
CRM:

Customer Relationship Management

EDI:

Electronic Data Interchange

GVA:

Governance Value Analysis

ICTs:

Information and Communication Technologies

IT:

Information Technology

JIT:

Just In Time

OEMs:

Original Equipment Manufacturers

SCM:

Supply Chain Management

TBL:

Triple Bottom Line

TCA:

Transaction Cost Analysis

TSAs:

Transaction Specific Assets

10

OPERATIONAL DEFINITION OF TERMS

Strategic sourcing:

The process of planning, implementing, controlling, and evaluating

highly important purchasing in an effort to meet a firms goals

11

CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1 Introduction
This chapter contains the background to the study, statement of the problem, general
objectives, specific objectives, research questions and significance of the study,
limitations of the study and the study scope of the study.
1.2 Background of the study
Strategic procurement can be approached from three main dimensions namely:
Development and management of key suppliers, internal operation of procurement
function and coordination of purchasing with other functions within the firm, and efforts
to meet or exceed customer expectations. It is seen as one of the critical function of an
organization with the potential to; save cost, improve operational efficiency, access to
trusted suppliers, and improve in quality of product or service, sharing of best practices
among others (Magnus, B. 2006). The representation of the strategic procurement can be
described in terms of its environment and structure, and what activities take place in the
supply link. General performance indicators of the supply link in terms of time, quality,
flexibility and cost are used to measure efficiency and effectiveness. The efficiency in the
supply link explains how well the resources are utilized. Since resources are scarce, it is
in everyones interest in the organization to maximize the utilization of the resources. The
effectiveness of the supply link explains how well the objectives are achieved (Arun, K.
and Linet, O. 2005).
In developing an effective strategy that enhances a companys long-term profitability,
Porter (1979) suggested that a firm must position itself where the forces of competition
are weakest, exploit changes in the forces and reshape the forces in their favour. Porter
argues that there are five competitive forces that shape strategy; powerful customers,
powerful suppliers, threat of new entrants, threat of substitutes and rivalry among existing
competitors. Awareness of the five forces can help an organization understand the
structure of its industry and stakeout a position that is more profitable in the long-term
1

and less vulnerable to threats. The strongest competitive force or forces determine the
profitability of an industry and become the most important to strategy formulation.
Globalization and intensive world-wide competition along with the
technological

advancements

environment

for

the

create

an

manufacturing

entirely

new

business

organizations.

Initially,

manufacturing companies have accomplished massive productivity

gains through the implementation of lean production in response to
this intensifying competition. The waste has eliminated from many
different local operations for the sake of better productivity. Currently
such

type

of

massive

productivity

improvements

for

many

manufacturing organizations is very limited. Instead, there is a huge

improvement potential to reduce the inefficiencies caused by the poor
performance of the suppliers, unpredictable customer demands, and
uncertain business environment. An integrated supply chain has a
clear advantage on the competitiveness of the individual companies.
As a result, the chain-chain competition has started to take over the
enterprise-enterprise

competition,

although

many

enterprise-

enterprise competitions do exist particularly in the less developed

economies (Koh et al, 2006).
In todays competitive market, companies must focus scarce resources
on the strategies most likely to yield success to their organization.
Supplier relationships have become increasingly important in assuring
this success. Outsourcing has become a common and profitable
phenomenon

and

therefore,

necessitates

more

critical

and

comprehensive understanding of the buyer / supplier relationship

(Berkowitz, 2004). SCM and related strategies are crucially important
to the success of a manufacturing firm. This is because the cost and
quality of goods and services sold are directly related to the cost and
quality of goods and services purchased. Therefore, supply chain
policies such as procurement and supplier selection have an important
2

role in the SCM (Hartley and Choi, 1996; Degraeve et al, 2000). Lean
practices to improve the internal processes of an organization in line
with the principles of just in time (JIT) supply are other highly
recognized practices in SCM (Burgess et al., 2006; Cigolini et al., 2004).
Supplier relationship management is the process that defines how a
company interacts with its suppliers. As the name suggests, this is a
mirror image of customer relationship management (CRM). Just as a
company needs to develop relationships with its customers, it also
needs to foster relationships with its suppliers. The desired outcome is
a win-win relationship where both parties benefit. (Supply Chain
Management Institute, 2008, July)
SRM is understood as the sourcing policy-based design of strategic
and operational procurement processes as well as the configuration of
the supplier management. (Appelfeller, & Buchholz, 2005). Integration
of internal processes of the organization with the suppliers and
customers forms the essence of the whole idea behind SCM. With the
widespread use of internet, web-based systems enable organizations
to form strong customer and supplier integration for inventory
management, demand forecasting, customer and supplier relationship
management (Frohlich & Westbrook, 2002). Strategic suppliers/vendors
are defined as those that provide high value, high complexity goods or
services. The nature of managing successful strategic supplier
relationships requires both client and supplier staff to collaborate on
developing ideas that will ultimately grow into innovation and
proactivity. Its not simply about the supplier delivering hard tangibles
to the requirements of the client. By disregarding measurement of the
qualitative component in the relationship, buyers lose the ability to
gain

meaningful

competitive

advantage.

The

descriptions

of

relationships are relatively abstract and vary with the discipline from
which they are being researched (e.g. strategy, economics or
3

psychology). As soon as two or more parties (i.e. organizations)

associate themselves in order to ful- fill a mutual business purpose a
relationship is established (Szwejczewski, M., et al, 2005). Such an
association leads to various joint activities, which are dependent on the
specific business objective. Buyer supplier relationships are classified
as- adversarial arms lengthapproach and partnerships approach
(Ellram, 1991).
The difference between, traditional arms-length relationships and
partner- ships is clear partnerships are closer than other types of
relationship. Relationships are seen as having positive links to
performance but little is known about the nature of this performance.
Relationships themselves can be seen as generic; applying to all buyer
supplier exchanges. Relationships are viewed as mutual, two-way,
involved exchanges between buyers and suppliers. It is apposite,
therefore, to bring a relationship performance viewpoint to this key
nexus of a firms operation.
For more than a decade, there has been a large and growing interest,
among academics and practitioners alike, in the value of effective
supply chain management (SCM) practices. The literature suggests
that a move towards to a close relationship between suppliers and
customers is mutually beneficial for both parties. This notion has been
widely accepted among original equipment manufacturers (OEMs) in
the U.S. As a result, the leading OEMs have reduced their supplier base
in recent years and reportedly developed closer relationships with a
selected few in the form of strategic alliances or partnerships
(McCutcheon &Stuart 2000; Johnston et al. 2004; Narayandas &
Rangan 2004; The Economist 2006). Buyer supplier relationships are
commonly evaluated as supply base reduction, communication and
long-term relationship (Buvil &Haugland, 2005; van Denlu & Verder
Vaart, 2004). Supplier relationship management (SRM), a subset of
4

supply chain management, is concerned with understanding who your

most important suppliers are and how you can focus your time and
energy

on

creating

and

maintaining

more

effective

strategic

relationships with them. An effective SRM solution contains essential

components such as ranking, rating and optimization that allow a firm
to reduce its supply base and overall costs. Ultimately, an effective
SRM solution gives an organization a complete edge by allowing it to;
reduce direct and indirect costs and improve bottom line profitability,
understand what is being bought and from whom, minimize the risk of
supply chain disruption, select the best supplies to again advantage
over competitors, streamline the supply chain management process by
collaborating with business units across the enterprise and assuring
that the organizations Resources are prioritized on the most critical
suppliers (Berkowitz, 2004). Performance on the other hand is how
efficient and effective supplier relationship management solution help
in achieving organizational objectives (Lawer, 2001).
1.3 Statement of the problem
Delayed deliveries, poor quality outputs due to faulty specifications, duplication of raw
materials and continued threats of litigation by the suppliers due to delayed payments, is
a common scenario among firms which experience poor relationship with their suppliers.
Supplier relationship management provides the holistic approach needed to maximize the
suppliers value to the enterprise. It is a critical shift from managing supplies to managing
suppliers. It succeeds through a focus on partnering with industry and leveraging
commercial capabilities. The main idea of the relationship between buyer and supplier is
to create a win-win situation for both the buyer and supplier, compared to the traditional
approach where the buyer had the power and could play the suppliers against each other
just to minimize cost. The collaboration should enable for example mutual cost sharing,
joint improvement efforts, conflict resolution and better communication. An effective
SRM solution contains essential components such as ranking, rating and optimization that
allow a firm to reduce its supply base and overall costs.
5

1.4 Objectives of the study

1.4.1 General objective of the study
The main objective of this study was to find out the effect of strategic sourcing in
enhancing efficiency in Kisumu Main Prisons, Kisumu County
1.4.2 Specific objectives
i.

To establish the effect of supply chain management on the procurement efficiency

ii.

at Kisumu Main Prisons

To investigate the effect of e-procurement on procurement efficiency at Kisumu

iii.

Main Prisons
To examine the effect of supplier relationship management on procurement
efficiency at Kisumu Main Prisons

1.5 Research questions

i.

To what extent does supply chain management affect the procurement efficiency

ii.
iii.

at Kisumu Main Prisons?

How does e-procurement affect procurement efficiency at Kisumu Main Prisons?
In what ways does supplier relationship management affect procurement
efficiency at Kisumu Main Prisons?

1.6 Significance of the study

This study has a fresh and relevant significance and is expected to provide
recommendations to facilitate adoption of strategic sourcing in the wines and spirits
industry. The recommendations will benefit the wines and spirits producers who employ
strategic sourcing. The findings will also help the wines and spirits merchants who sell
their produce in the electronic market places. Thirdly, the study will generate literature
that will be of practical use by procurement scholars and supply chain practitioners.
1.7 Limitation of the study
This was a literature review research and hence did not have the benefit of generating
knowledge through empirical experience and first-hand data collection. This limitation
6

was overcome by ensuring adequate coverage in terms of analysis of past research

findings and exhaustive critical evaluation of their relevance to the research problem.
1.8 Scope of the study
The study involved finding out the effect of strategic sourcing in enhancing efficiency in
Kisumu Main Prisons, Kisumu County. The data was collected between February and
April 2016. The Study Variables are; Supply chain management,E-procurement and
Supplier relationship management.

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
In this chapter the literature review is done. It is a combination of findings from different
sources of information that aims to review the critical points of current knowledge
including substantive findings as well as theoretical and methodological contributions to
a particular topic. They are secondary sources of information and hence do not report any
new or original experimental work.
2.2 Empirical Literature Review
In this section, the researcher reviewed the theories relevant to Strategic Sourcing and
procurement efficiency. The Major theory discussed is the Resource Dependency Theory
Resource Dependency Theory
Resource dependence theory takes the view that a business relationship is a social
exchange of critical resources with mutual dependency among the exchange partners.
Thus, the survival and growth of organizations largely depend on the ability to secure
critical resources from the external environment (Emerson 1962; Pfeffer & Salancik
1978; Casciaro & Piskorski 2005). But a relationship between organizations is not free.
Transaction cost analysis (TCA) suggests that every transaction has a cost. These costs
are incurred for adaptation, performance evaluation and safeguarding, and are associated
with uncertainty, opportunism, and transaction specific assets (TSAs) invested in the
relationship (Williamson, 1996; Rindfleisch & Heide 1997). Transaction specific assets
refer to the assets specialized to service the particular needs of the exchange parties
(Williamson 1996). Firms invest in TSAs in order to create additional value from an
exchange above what standard product and service offerings can do (Ghosh and
John,1999). Examples of TSAs include the development of idiosyncratic knowledge, the
provision of dedicated human resources and training, and capital investment in
specialized equipment and facility improvement (Williamson, 1996)
8

Although resource dependence theory and transaction cost analysis depart from different
points of view (sociology and new institutional economics, respectively), they have
something in common. While resource dependence theory focuses on ex ante mutual
dependence between exchange partners due to critical resources, transaction cost analysis
assumes that two parties are initially independent but develop bilateral dependence ex
post due to relationship specific assets invested over the course of the relationship (Heide
1994; Casciaro & Piskorski 2005). Despite these different views, however, both theories
recognize the existence of interdependency between exchange partners and the
importance of securing valued resources from environmental and behavioral uncertainty
(Heide, 1994).
Specifically, based on utilitarian assumptions of self-interested behaviors of exchange
partners, transaction cost analysis argues that TSAs raise the cost of safeguarding against
a behavioral uncertainty of an exchange partner such as an opportunistic behavior where
one party may exploit the other for unilateral benefits (Heide & John 1990; Heide 1994;
Rindfleisch & Heide 1997; Bensaou & Anderson 1999; Ghosh & John 1999, 2005).
Being unique to a relationship, and possessing little or no value upon the relationship
termination, TSAs are often viewed as valuable but vulnerable investments (Ghosh &
John 1999; Wathne & Heide 2004; Ghosh & John 2005).
Combining the resource and transaction cost perspectives into a strategic point of view,
Ghosh & John (1999) proposed a governance value analysis (GVA) framework that links
resources, positioning strategy, TSAs and governance. They argue that a firm creates
potential market value through a unique positioning and can claim those values through a
competitive advantage based on firm-specific resources. In an effort to achieve
competitive advantage in the market, firms align themselves with exchange partners
(customers and suppliers) and create joint values, such as cost reduction and/or value
addition, through investments in TSAs. While creating maximum values from the market,
(Ghosh & John 2005) argue that firms should safeguard their share of values jointly
created as well as their investments in TSAs against opportunism through strategic
selection of relationship governance. For example, the authors found, in a later study on
industrial alliances, that OEMs given a high level of specific investments achieve a
9

high level of cost reduction from less flexible contracts with their suppliers while
achieving a high level of end-product enhancement from more flexible contracts (Ghosh
& John 2005).
Based on these findings, they suggest that OEMs take different governance value
engineering approaches to supplier relationship management depending on their primary
pursuit of strategic outcomes (i.e., cost reduction vs. product enhancement).
2.2.1. Supply chain management and procurement efficiency
In the todays market dynamism and competitive scenario supply chain management
assumes a significant importance and must calls for serious research attention, as
companies are challenged with finding ways to meet ever-rising customer expectations at
a manageable cost. To do so, businesses must search out which parts of their supply-chain
process are not competitive, understand which customer needs are not being met,
establish improvement goals, and rapidly implement necessary improvements. Jain,
Dangayach, Agarwal, Banerjee (2010). Previously manufacturers were the drivers of the
supply chain - managing the pace at which products were manufactured and distributed.
Today, customers are calling the shots, and manufacturers are scrambling to meet
customer demands for options/styles/ features, quick order fulfillment, and fast delivery.
Manufacturing quality - a long-time competitive differentiator - is approaching parity
across the board, so meeting customers specific demands for product delivery has
emerged as the next critical opportunity for competitive advantage. Companies that learn
how to improve management of their supply chain will become the new success stories in
the global market place. Study on Benchmarking shows significant cost differences
between organizations that exhibit best-in-class performance and those with average
performance. Jain, Dangayach, Agarwal, Banerjee(2010).
Traditionally, Supply Chain Management (SCM) has been a melting pot of various
aspects, with influences from logistics and transportation, operations management and
materials and distribution management, marketing, as well as purchasing and information
technology (IT). Ideally, the all-encompassing philosophy of SCM embraces each of
these functions to produce an overall supply chain strategy that ultimately enhances firm
10

performance (Croom et al., 2000; Wisner and Tan 2000). In actuality, the literature is still
very fragmented and although several studies purport to discuss supply chain issues, most
of the existing research only examines one link of the chain, or most importantly only
focuses on one ingredient in the supply chain performance mix. Six major movements
can be observed in the evolution of supply chain management studies. Creation,
Integration, Globalization and Specialization. To address inconsistent definitions of
sustainability in existing literature of supply chain management, Carter and Rogers
(2008) came up with the concept of true sustainability. They argued that consideration
of environmental and social issues should be coupled with economic objectives and
incorporated in companys strategic long-term planning (Carter and Rogers 2008). Such
definition of sustainability is though not new and based on the well-known idea of triple
bottom line (TBL) perspective. Seuring and Muller (2008) have also noticed high
diversity of sustainability comprehension in supply chain management and referred to
the triple bottom line approach, where a minimum performance is to be achieved in the
environmental, economic and social dimensions. This can be comprehended as being in
line with the notion of order qualifiers a company has to fulfill before it is able to even
compete for orders.
2.2.2 E-procurement and procurement efficiency
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 postpurchase review (Croom & Brandon-Jones, 2004). While there are various forms of eProcurement that concentrate on one or many stages of the procurement process such as
e-Tendering, e-Marketplace, e-Auction/Reverse Auction, and e-Catalogue/Purchasing, eProcurement can be viewed more broadly as an end-to-end solution that integrates and
streamlines many procurement processes throughout the organization. Businesses have
realized that time and cost savings can be achieved by having a link with major suppliers
through private networks such as electronic data interchange (EDI). The internet has
enabled firms to even centralize their procurement and logistics systems that previously
conducted in every country they operated. Driven by the increasing trend toward
11

purchasing inputs and other raw materials from outside the organization, implementing
electronic procurement (e-procurement) has become a significant tactic in most
companies e-business strategies (Deloitte Consulting, 2001)
Internal customer satisfaction, through E-Procurement function can usually contribute to
the competitive position of any company in many other ways than first through cost
serving Van Weele (2005) presents a few of these was such as: reduction of quality cost
e-procurement can reduce quality costs by making sure that selected suppliers deliver a
product of service that does not exceed extensive quality control. E-Procurement can also
reduce quality costs by making sure that the components bought do not load to
complaints on the user department or final product to the customer. Product
standardization internal customer satisfaction can be enhanced through E-procurement
due to the product variety concept. This can be achieved by reducing the number of
different components and or the number of suppliers via set product standards.
Contribution to product design and innovation of then innovation in industry come from
suppliers or are results from intensive interactions between suppliers and user department
in any organization. By actively encouraging this kind of interactions E-Procurement can
contribute to fast and to continued innovation and improvement of product and user
satisfaction. E-Procurement system is a compound application that contains many usable
functions to assist company in processing the activities of purchasing transaction. The use
of a Web-based procurement system can strengthen search ability, facilitate faster and
more accurate data transmission, provide quicker and more plentiful information, and
achieve relatively low communications and coordination cost. Hence, Web-based
procurement mainly affects four of the organizations major B2B tasks: search, purchase
processing, monitoring and control, and coordination (Subramaniam and Shaw 2002).
E-procurement has covered procurement automation for internal organizational
processes, and supplier collaboration for inter-organizational processes. The former
addresses automated, paperless internal process from end user item selection, to creation
and routing of purchase request and approval to purchase order creation, and receiving.
The latter is about connectivity with suppliers for electronic catalogs, transaction
management and on-going relationship management. To realize the benefits of Web12

based e-procurement, an understanding of the impacts influencing the value forming is

needed so that the solution may be developed to facilitate the implementation of Webbased e-procurement system (Subramaniam and Shaw 2002).
2.2.3 Supplier relationship management and procurement efficiency
The study of supplier-customer relationships has shifted from a focus on the
organizational traits associated with relationships to a focus in which personal trust
between the parties has been acknowledged as an important ingredient (Ganesan 1994;
Handy 1995; Heide and Miner 1992; Kumar et al., 1995). McAllister (1995) concluded
that trust occurs in cognitive and affect-based forms. The former has its roots in reliable
role performance, cultural-ethnic similarity, and professional credentials, while the latter
is a function of individual behavior and interaction frequency. Both forms were found to
enhance coordination by lowering administrative costs. Coordination is related to trust
through boundary definition, and reflects the set of tasks each party expects the other to
perform (Mohr and Spekman 1994). Trust has also emerged as an important component
of supplier/manufacturer relational exchange norms (Young, Gilbert, and McIntyre 1993),
and firms are beginning to acknowledge the importance of trust and coordination in
cooperative relationships (Pilling and Zhang 1992). Gulati (1995) found that suppliers
and customers are less likely to use equity sharing agreements as they gain more
experience with each other through ongoing relationships. Moreover, greater familiarity
between the parties bred trust, which replaced legal relationships. The underlying theme
of these studies is that trust develops when tangible benefits appear to both parties from
the business relationship. Interestingly, even as firms increase the length of their
agreements, research has concluded that many supplier/customer relationships are still
characterized by a lack of trust (Coviello et al., 2002). Thus, opportunistic behavior by
one party can lead to a lack of trust by the other party (Stump and Heide 1996).
Communication and the sharing of information are fundamental to most aspects of
supplier-customer relationships (Kapp and Barnett 1983; Mohr and Nevin 1990). Indeed,
it has been proposed that the exchange of information between the parties serves to
"create" a necessary environment for the conduct of business relationships (Pfeffer and
13

Salancik 1978; Weick 1969). Therefore, as boundary spanners exchange information, that
information provides cues to the other party as to what the communicating boundary
spanner considers important to his/her organization and the relationship.
Dependence exists when one of the boundary spanners does not entirely control all of the
conditions necessary for achievement of a desired outcome performed by the other party
(Emerson 1962; Ganesan 1994). Resource dependence theory specifies the conditions
under which one unit is able to obtain compliance with its demands when dependence
between the parties is present (Pfeffer and Salancik 1978). Three critical factors that
affect the degree of perceived dependence include the importance of the resource, the
extent to which the group has discretion over the resource, and the extent to which there
are limited alternatives. For instance, Provan and Skinner (1989) found that dealers of
agriculture equipment were less opportunistic when they depended on a primary supplier,
whereas suppliers with greater control over dealers' decisions exhibited greater
opportunism. Therefore, as the dealer became more dependent on the supplier, they chose
to minimize their opportunism in the supply market and limit their business with the
supplier. However, those that sense guaranteed business from a dependent supplier or
customer will pursue opportunities for other business relationships at the expense of the
existing relationship. Also,
The influence of asset specificity on organizational relationships was originally described
by transaction cost theorists (Williamson 1979), and the concept was later extended to
help explain the formation of "clans" (Ouchi 1980).
2.3 Critical literature review and gaps to be filled by the study
Strategic sourcing is defined as the process of planning, implementing, controlling, and
evaluating highly important purchasing in an effort to meet a firms goals (Carr and
Smeltzer, 2000; Carr and Pearson, 1999 and 2002). A number of articles address the need
for purchasing to assume a more strategic role (Carr and Smeltzer, 2000; Carter and
Narasimhan, 1994, 1996a, and 1996b; Ellram and Carr, 1994; Narasimhan and Das,
1999; and Pearson and Gritzmacher, 1990). Strategic sourcing is increasingly seen to be a
business capability of firms. Sourcing if properly structured can effectively combine the
14

core competencies of a given firm with the skills and capabilities of its suppliers.
Sourcing decisions are vital for any organizations that want to leverage on its core
competencies and outsource other activities in order to gain and retain competitiveness
(Pillania 2008).
Strategic sourcing is probably the most significant aspect characterizing an organizations
transformation to supply management. It is also this aspect of supply management which
provides some of the most value-added benefits to the organization. Sourcing activities
includes analyzing expenses, identifying potential suppliers, requesting quotations,
negotiating contracts, monitoring and improving suppliers (Kumar et al., 2003). Strategic
sourcing aims at streamlining sourcing and purchasing activities to support the total
supply chain vision to service the ultimate customer. It aligns the sourcing operations to
support overall organizations strategy and service level (Kocabasoglu, 2002; Ellram and
Carr, 1994; Pearson and Gritzmacher, 1990).
Strategic sourcing aims at identifying and selecting suppliers for long-term partnerships,
engages in early involvement of suppliers and supplier development by effectively
allocating resources to enhance supplier performance. It provides benchmarks and
continuous feedback to suppliers and in some cases engages in supplier pruning activities
(Tomas and Hult, 1998; Talluri and Narasimhan, 2004). Strategic sourcing architecture
upholds the competitive profile of the company and develops, interconnect and manage
the rings constituting the chain (De Toni et al., 1994). Narasimhan and Das (1999)
investigated the influence of strategic sourcing and advanced manufacturing technologies
on specific manufacturing flexibilities. The findings suggest that strategic sourcing can
assist in the achievement of modification flexibilities. Strategic sourcing can be used to
target specific manufacturing flexibilities. Das and Narasimhan (2000) developed
purchasing competence as a valid construct and explore its relationship with different
manufacturing priorities. An empirical study is conducted among purchasing
professionals in manufacturing firms. The results of the research indicate that purchasing
competence is found to have a positive impact on manufacturing cost, quality, and
delivery, as well as new product introduction and customization performance. Purchasing

15

integration, a component of purchasing competence, is found to relate to all dimensions

of manufacturing performance.
2.4 Summary of gaps
Delayed deliveries, poor quality outputs due to faulty specifications, duplication of raw
materials and continued threats of litigation by the suppliers due to delayed payments, is
a common scenario among firms which experience poor relationship with their suppliers.
Supplier relationship management provides the holistic approach needed to maximize the
suppliers value to the enterprise. It is a critical shift from managing supplies to managing
suppliers. It succeeds through a focus on partnering with industry and leveraging
commercial capabilities. The main idea of the relationship between buyer and supplier is
to create a win-win situation for both the buyer and supplier, compared to the traditional
approach where the buyer had the power and could play the suppliers against each other
just to minimize cost. The collaboration should enable for example mutual cost sharing,
joint improvement efforts, conflict resolution and better communication. An effective
SRM solution contains essential components such as ranking, rating and optimization that
allow a firm to reduce its supply base and overall costs.

16

2.5 Conceptual theoretical framework

This is a diagrammatic representation which conceptualizes the relationship between
variables; independent and dependent variables.
Independent Variables

Dependent Variable

Supply chain management

Procurement efficiency

E-procurement
Supplier relationship
management
Figure
2.1: Conceptual framework
Source: Author (2016)

This is a figure that conceptualizes the relationship between independent and dependent
variables.

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
17

3.1 Introduction
This chapter provides information on the research design, target population, sampling
design, data collection instruments and procedures and data analysis and presentation.
3.2 Research Design
The study was conducted through case study research design. Oso and Onen (2005)
defined a case study as a research design where the researcher is involved in an intensive,
descriptive and holistic analysis of a single entity or a bounded case. The researcher
acknowledged that case studies are ideally suitable for studies that have smaller samples
for in-depth analysis in order to gain insight in larger cases and to describe and explain
rather than predict a phenomenon; thus its justification for this study.
3.3 Target Population
Population is an entire group of individuals, events or objects having common or
observable features (Mugenda and Mugenda, 2004) whereas Cooper and Emory (2001)
defines population as the total collection of elements about which the researcher wishes
to make some inferences. The target population is the population to which the researcher
wants to generalize the results (Mugenda and Mugenda, 2004).In this study, the target
population consisted of 16 employees from the procurement department.
3.4 Sample and Sample Design
A sample is the number of items selected to represent the whole population (Kothari,
2004).Cooper and Emory (2001) defines sample size as the subject on which the
measurement is being taken as the unit of study. A sampling design is the method of
selecting items to be observed for given study (Kothari, 2004).A census sampling
technique method was used, where all those in the target population formed the sample
size. The ideal figure is 16 respondents who are employees of Kisumu Main Prisons, all
from procurement department. The researcher used census since the population is small
hence manageable.
3.5 Data Collection Instrument
18

The study used field tested questionnaires to collect data for the study. Questionnaires as
defined by Sekaran (2006) include all techniques of data collection in which each person
is asked to respond to the same set of questions in a predetermined order. In this study,
personally administered questionnaires will be used. The researcher will use both open
ended and close ended questionnaires. The researcher acknowledged that personally
administered questionnaires were the best when the study is confined to a local area as in
this case. Moreover, the researcher could collect all completed responses within a short
period; clarifications could be made on the spot in cases where respondents have doubt;
and questionnaires could be administered to a large number of individuals at the same
time resulting in cost and time saving thus its justification for this study.
3.5.1 Data Reliability
Mugenda and Mugenda, 2003 defines reliability as a measure of degree to which
researchers instruments yield consistent results of data after repeated trials. They further
indicate that reliability in research is influenced by random error. As random error
increases, reliability decreases. Random error is the deviation from the measurements due
to factors that have not been effectively addressed by the researcher. Such errors could be
as a result of inaccurate coding, biasness of the researcher or respondent, and researchers
fatigue.
3.5.2 Data Validity
Validity is the accuracy and meaningfulness of interference which are based on the
research results (Kats, 1987). It is the degree of which results obtained from analysis of
the data actually represent the variable of the study. In testing the validity and reliability
of questionnaires, questionnaires are pre-tested outside the sample population using the
test re-test method (Kothari, 2004). Pilot tests were done and respondents were guided on
how to fill the questionnaires so as to eliminate or minimize errors.
3.6 Data Analysis Method and Presentation

19

The researcher used quantitative analysis techniques which involved descriptive statistics
to analyze the quantitative data. The qualitative data was analyzed by the use of
document analysis and the findings presented by the use of tables and pie charts.

CHAPTER FOUR
20

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction
This chapter reports the findings of data that was gotten from Kibos GK Prisons. It
therefore, consists of data analysis, presentation and interpretation of the findings.
4.2 Presentation of findings
This section contains the general information pertaining to respondent personal details.
Gender of respondents
The researcher wanted to find out the gender of the respondents. The findings were then
presented in table 4.1:
Table 4.1: Gender of respondents
Category
Male
Female
Total
Source: Research data (2016)

Frequency
10
6
16

21

Percentage
63%
37%
100%

70%
60%
50%
40%
Percentage number of respondents

30%
20%
10%
0%
Male

Female

Gender of respondents

Figure 4.1: Gender of respondents

Source: Research data (2016)
According to table 4.1, 63% of the respondents were male and 37% of the respondents
were female. The majority of the employees in Kisumu Main Prisons limited were male.
The organization had personnel who were energetic enough to carry out it duties well
Age of respondents
The researcher wanted to find out the age of the respondents. The findings were then
presented in table 4.2:

22

Table 4.2: Age of respondents

Category
Below 20 years
20-30 years
31-40 years
41-50 years
51years and above
Total
Source: Research data (2016)

Frequency
0
7
4
3
2
16

Percentage number of respondents

Percentage
0%
46%
25%
19%
10%
100%

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Age of respondents

Figure 4.2: Age of respondents

Source: Research data (2016)
Going by figure 4.2 and table 4.2, 46% of the respondents were aged 20-30 years old,
25% of the respondents were 31-40 years, 19% were 41-50 years and 10% were aged 51
years and above. Majority of the respondents were 20-30 years hence old and mature
enough to tackle and understand the issues in the questionnaire.

23

Experience of the respondents

The researcher wanted to find out the experience of the respondents. The findings were
then presented in table 4.3:
Table 4.3: Experience of the respondents
Category
Below 1 year
1-5 years
Over 5 years
Total

Frequency
3
7
6
16

Percentage
16%
44%
40%
100%

Source: Research data (2016)

Percentage number of respondents

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Experience of the respondents

24

Figure 4.3: Experience of the respondents

Source: Research data (2015)
According to table 4.3, 44% of the respondents had worked here for 1-5 years, 40% of
the respondents had worked at Kisumu Main Prisons for over 5 years and 16% of the
respondents had worked here for less than 1 year. A majority of the respondents had been
here for number of years long enough to have experienced and understood how the
concept affects the organization.
4.3.1. Supply chain management and procurement efficiency
The researcher wanted to find out the effects of supply chain management on
procurement efficiency. The findings were then presented in table 4.4:

25

Table 4. 4: The effects of supply chain management on procurement efficiency

Category

Frequency
13

Percentage
87%

11%

2%

16

100%

Great extent
Moderate extent
Low extent
Total
Source: Research data (2016)

Percentage number of respondents

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

The effects of supply chain management on procurement efficiency

Figure 4. 4: The effects of supply chain management on procurement efficiency

Source: Research data (2016)
The research findings in table 4.4, 87% of the respondents believed the effects of supply
chain management on procurement efficiency was great, 11% of the respondents were of
the respondents the effects of supply chain management on procurement efficiency was
moderate while 2% were of the view the effect was low. Majority of the respondents
(87%) were of the opinion that the effect of supply chain management on procurement
efficiency was great.
26

The researcher wanted to find out the how the respondents the relationship between
supply chain management and procurement efficiency. The findings were then presented
in table 4.5:
Table 4.5: Relationship between supply chain management and procurement
efficiency
Category
Lead time management
Cost management
Disposal management
Professionalism
Total
Source: Research data (2016)

Frequency
5
4
6
1
16

Percentage number of respondents

Percentage
30%
24%
39%
7%
100%

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Relationship between supply chain management and procurement efficiency

Figure 4.5: Relationship between supply chain management and procurement

efficiency

27

Source: Research data (2016)

According to figure 4.5 and table 4.5, 39% of the respondents were of the opinion that
disposal management was the relationship between supply chain management, 30%
believed that lead-time management was the relationship, 24% of the respondents thought
that cost management the relationship between supply chain management and
procurement efficiency while 7% were of the view that professionalism was the
relationship. A large percentage of the respondents (39%) were of the opinion that
disposal management was the relationship between supply chain management and
procurement efficiency.

4.3.2. E-procurement and procurement efficiency

The researcher wanted to find out the effect of e-procurement on procurement efficiency.
The findings were then presented in table 4.6:
Table 4.6: Effect of e-procurement on procurement efficiency
Category
Great extent
Moderate extent
Low extent
Total
Source: Research data (2016)

Frequency
13
2
1
16

28

Percentage
79%
16%
5%
100%

Percentage number of respondents

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Effect of e-procurement on procurement efficiency

Figure 4.6: Effect of e-procurement onprocurement efficiency

Source: Research data (2016)

Going by the data provided in table 4.6, 79% of the respondents thought that the effect of
e-procurement on procurement efficiency was great, 16% of the respondents were of the
view that the effect of e-procurement on procurement efficiency was moderate and 5%
felt that it was low. Most of the respondents (79%) were of the view that the effect of eprocurement on procurement efficiency
The researcher wanted to find out the factors that affect the implementation of Eprocurement in Kisumu Main Prisons. The findings were then presented in table 4.7:
Table 4.7: The factors that affect the implementation of E-procurement
Category
High cost of purchase of

Frequency
10

equipment
29

Percentage
62%

Cost of training

15%

employees
Legal requirements
Total
Source: Research data (2016)

4
16

23%
100%

70%
60%
50%
40%
Percentage number of respondents

30%
20%
10%
0%
High cost of purchase of equipment

The factors that affect the implementation of E-procurement

Figure 4.7: The factors that affect the implementation of E-procurement

Source: Research data (2015)
According to the findings in figure 4.7 and table 4.7, 62% of the respondents felt that
high cost of purchase was a factor that affected the implementation of E-procurement at
Kisumu Main Prisons, 23% of the respondents were of the opinion that legal
requirements was a factor that affected E-procurement implementation and 15% thought
that the cost of training employees affected. Majority of the respondents felt that the high
cost of purchase affected the implementation of E-procurement at Kisumu Main Prisons.
4.3.3. Supplier relationship management and procurement efficiency

30

The researcher wanted to find out how the organization ensured supplier relationship
management in Kisumu Main Prisons. The findings were then presented in table 4.8:

31

Table 4.8: How the organization ensured supplier relationship management

Category

Frequency

Percentage

Supplier visit
Supplier appraisal
Supplier assistance
Total
Source: Research data (2016)

6
7
3
16

35%
45%
20%
100%

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Percentage number of respondents

How the organization ensured supplier relationship management

Figure 4.8: How the organization ensured supplier relationship management

Source: Research data (2016)
According to the research data in figure 4.8, 45% of the respondents thought that the
organization ensured supplier relationship management through supplier appraisal, 35%
of the respondents felt that through supplier visits Kisumu Main Prisons ensured supplier
relationship management and 20% of the respondents were of the view that supplier
assistance was the best avenue through which the organization ensured supplier
relationship management. Most of the respondents felt that supplier appraisal was used to
ensure supplier relationship management at Kisumu Main Prisons.
32

The researcher wanted to find out how the respondents rated supplier relationship
management at Kisumu Main Prisons. The findings were then presented in table 4.9:
Table 4.9: Rating supplier relationship management at Kisumu Main Prisons
Category
Very fair
Fair
Not fair
Total
Source: Research data (2016)

Frequency
13
3
0
16

Percentage
82%
18%
0%
100%

90%
80%
70%
60%
50%
Percentage number of respondents

40%
30%
20%
10%
0%
Very fair

Fair

Figure 4.9: Rating supplier relationship management at Kisumu Main Prisons

Source: Research data (2016)

Going by table 4.9, 82% of the respondents rated supplier relationship management as
very fair and 18% were of the view that it was fair. Majority of the respondents felt that
supplier relationship management was very fair.
4.4 Summary of data analysis

33

In the first objective, Majority of the respondents (87%) were of the opinion that the
effect of supply chain management on procurement efficiency was great. A large
percentage of the respondents (39%) were of the opinion that disposal management was
the relationship between supply chain management and procurement efficiency.
In the second objective, most of the respondents (79%) were of the view that the effect of
e-procurement on procurement efficiency. Majority of the respondents felt that the high
cost of purchase affected the implementation of E-procurement at Kisumu Main Prisons.
Lastly, most of the respondents felt that supplier appraisal was used to ensure supplier
relationship management at Kisumu Main Prisons. Majority of the respondents felt that
supplier relationship management was very fair.

34

CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter presents a detailed discussion of the findings in relation to the research
question formulated in the study. Conclusions were drawn from the findings and
appropriate and befitting recommendations were given. This chapter therefore, concludes
suggestions and areas for further studies.
5.2 Summary of findings
5.2.1. Supply chain management and procurement efficiency
In the first objective, 87% of the respondents believed the effects of supply chain
management on procurement efficiency was great, 11% of the respondents were of the
respondents the effects of supply chain management on procurement efficiency was
moderate while 2% were of the view the effect was low. Majority of the respondents
(87%) were of the opinion that the effect of supply chain management on procurement
efficiency was great.

39% of the respondents were of the opinion that disposal

management was the relationship between supply chain management, 30% believed that
lead-time management was the relationship, 24% of the respondents thought that cost
management the relationship between supply chain management and procurement
efficiency while 7% were of the view that professionalism was the relationship. A large
percentage of the respondents (39%) were of the opinion that disposal management was
the relationship between supply chain management and procurement efficiency.
5.2.2. E-procurement and procurement efficiency
In the second objective, 79% of the respondents thought that the effect of e-procurement
on procurement efficiency was great, 16% of the respondents were of the view that the
effect of e-procurement on procurement efficiency was moderate and 5% felt that it was
low. Most of the respondents (79%) were of the view that the effect of e-procurement on
35

procurement efficiency. 62% of the respondents felt that high cost of purchase was a
factor that affected the implementation of E-procurement at Kisumu Main Prisons, 23%
of the respondents were of the opinion that legal requirements was a factor that affected
E-procurement implementation and 15% thought that the cost of training employees
affected. Majority of the respondents felt that the high cost of purchase affected the
implementation of E-procurement at Kisumu Main Prisons.
5.2.3 Supplier relationship management and procurement efficiency
Lastly, 45% of the respondents thought that the organization ensured supplier relationship
management through supplier appraisal, 35% of the respondents felt that through supplier
visits Kisumu Main Prisons ensured supplier relationship management and 20% of the
respondents were of the view that supplier assistance was the best avenue through which
the organization ensured supplier relationship management. Most of the respondents felt
that supplier appraisal was used to ensure supplier relationship management at Kisumu
Main Prisons. 82% of the respondents rated supplier relationship management as very
fair and 18% were of the view that it was fair. Majority of the respondents felt that
supplier relationship management was very fair
5.3 Conclusions
In the first objective, Majority of the respondents (87%) were of the opinion that the
effect of supply chain management on procurement efficiency was great. A large
percentage of the respondents (39%) were of the opinion that disposal management was
the relationship between supply chain management and procurement efficiency.
In the second objective, Most of the respondents (79%) were of the view that the effect of
e-procurement on procurement efficiency. Majority of the respondents felt that the high
cost of purchase affected the implementation of E-procurement at Kisumu Main Prisons.
Lastly, Most of the respondents felt that supplier appraisal was used to ensure supplier
relationship management at Kisumu Main Prisons. Majority of the respondents felt that
supplier relationship management was very fair.

36

5.4 Recommendations
The study, therefore recommends; government institutions to conduct organizational
scanning in the disposal of assets, establishing the most appropriate strategic sourcing
tools that could be used to enhance efficiency in supply chain management and
implementing them accordingly. Government institutions should create an enabling
environment for improved supplier/buyer relationship management which could lead to
innovations that enhances adoption of various elements of strategic sourcing.
5.5 Suggestions for further studies
This researcher suggests that the research be used as background for future related
researches

37

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Beauvallet, G., Boughzala, Y. and Assar, S. (2011). E-Procurement, from Project to
Practice: Empirical Evidence from the French Public Sector. Retrieved
www.google.com.
Bikshapathi,K., RamaRaju, P. and Bhatnagar, S. (2010). E-Procurement in Government
of Andhra Pradesh, India. Ahmedabad: IIM.
Chin-Fu, H., Yi-Ming, T., Wen-Hsiung, W. and Jau-Jeng, J. (2008). Exploring the Impacts
of Web-Based E-Procurement on Organizational Performance. Retrieved
www.Pacis.com.
Davila, A. , Gupta, M. and Palmer, R. (2002). Moving Procurement Systems to the
Internet: The Adoption and Use of E-Procurement Technology Models. Retrieved
www.emeraldinsight.com.
Done,A., Liao, C., and Maedler, M. (2011). Technology in Purchasing: Impacts ofn
Performance and Future Confidence. IESE Business School.
European Commission (2012). Commission Staff Working Document Annual Public
Procurement Implementation Review 2012. Brussels, 9.10.2012 SWD(2012) 342
final.
European Commission (2012).EU public procurement legislation : delivering results
Summary of evaluation report. Brussels: EU
Friedman, T.L (2006). The World is Flat (1st Edition). London: Penguin.
Gates, B (2009). Business @ the Speed of Thought. London: Penguin Group.
Hayton, J, (2010) Procurement Fraud in e-Business: Dispute, Analysis and Investigations.
PriceWaterHouse Coopers.

38

Howard, M., Vidgen, R., Powell, P.and Graves, A. (2002). Are Hubs the Centre of
Things? E-Procurement in the Automotive Industry. ECIS Journal. June 6-8,
1517-1526.
Kubicek, H., Hansen, M., and Cimander, R (2009). Electronic Signatures as Obstacle for
Cross-Border E-Procurement in Europe. Information Management. Retrieved
www.eten-procure.com.
Mugenda, A (2008). Social Science Research: Theory & Principles (1st Edition). Nairobi:
ARTS Press.
Mukhopadhyay, T and Kekre, S. (2002). Strategic and operational benefits of electronic
integration in B2B procurement processes, Management Science, 48(10), pp
1301-1313.
Price Waterhouse Coopers (2012). Automobile Industry in Kenya. Retrieved
www.pwc.com.
Reddick, C.G. (2004). The Growth of E-Procurement in American State Governments: A
Model and Empirical Evidence. Journal Of Public Procurement, Volume 4, Issue
2, 151-176.
Robinson, M. (Ed) (1997): Chambers 21st Century Dictionary. Edinburgh: Chambers
Harrap Publishers Ltd.
Samaniego, M.J.G., Arranz, A.M.G. and Cabezudo, R.S. J. (2006). Department of
Management and
Marketing, University of Valladolid, Valladolid, Spain Determinants of internet use in the
purchasing Process. Journal of Business & Industrial Marketing. 21, 3, 164 174.
Sarkar, A. (2009). E-Commerce Adoption and Implementation in Automobile Industry: A
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Schoenherr, T. and Tummala, V. M. R., (2007). Electronic procurement: a structured

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Singh, I. and Punia, D.K. (2009). Employees Adoption of E-Procurement System: An
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Weele, A.J.V (2005). Purchasing and Supply Chain Management: Analysis, Strategy and
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World Bank (2004). Strategic Electronic Government Procurement. Retrieved
www.worldbank.com.

40

APPENDIX II
QUESTIONAIRES
I am a student at Kisii University, Kisumu Campus. I kindly request your responses in
filling this questionnaire.
SECTION A: BACKGROUND INFORMATION.
Please tick in the right box next to the right response where applicable.
1. Kindly state your Gender?
Male
Female

2. What bracket does your age fall?

Below 20 years
21-30 years
31-40 years
41-50 years
51years and above
3. For how long have been here?
Below 1 years
1-5 years
Over5 years

SECTION B: Supply chain management and procurement efficiency

To what extent does supply chain management affect procurement efficiency?
Great extent
Moderate extent
Low extent
Support your answer

What is the relationship between supply chain management and procurement efficiency?
Lead time management
Cost management
Disposal management
Professionalism
Support your answer

SECTION C: E-procurement and procurement efficiency

To what extent does E-procurement affects procurement efficiency?
Great extent
Moderate extent
Low extent
Support your answer

What factors affect the implementation of E-procurement at Kisumu Main Prisons?

High cost of purchase of equipment
Cost of training employees
Legal requirements
Support your answer

SECTION D: Supplier relationship management and procurement efficiency

How does your organization ensure supplier relationship management in your
organization?
Supplier visit
Supplier appraisal
Supplier assistance
Support your answer

How do you rate supplier relationship management in your organization?

Very fair
Fair
Not fair
Support your answer

THANKS FOR YOUR RESPONSE

APPENDIX III
WORK PLAN
Activities

February

Feb

Feb

March

March

April

2016

2016

2016

2016

2016

2016

Writing a research
proposal
Consultation

Submission of
research proposal

Data collection
Data analysis and
processing
Editing of
Final Document
Submission of
final document

Source: Author (2016)

APPENDIX IV
BUDGET
S/NO

ITEM

DESCRIPTION

ESTIMATED AMOUNT IN (KSH)

STATIONARY

Flash disc @ 2,000

2,000

5 pens @ 100

100

Ream of photocopying
papers @ 400

400

INTERNET

Printing
and
typesetting @ 600

600

Browsing and phone

1,000

call costs

TRAVEL AND

To

ACCOMODATION

company

and

from
and

the

3,000

other

data collection sites

MISCELLENIOUS

1500

TOTAL

8, 600

Source: Author (2016)