EFFECTS OF INFORMATION COMMUNICATION TECHNOLOGY ADOPTION ON PROCUREMENT PROCESS IN KENYA’ S OIL INDUSTRY: A SURVEY OF TOTAL KENYA LIMITED MOMBASA COUNTY

Daniel Kinuthia Wanjiru, Ali Ibrahim Abdalla

Abstract: The purpose of this study was to map the effects of ICT adoption in procurement processes using Total Kenya limited case. This was guided by four specific objectives: To identify ICT applications adopted in the organizations procurement processes, to establish the firms supply chain propensity to partner with suppliers in ICT adoption. To identify the influence of individual factors in adopting ICT and to determine the challenges experienced in ICT adoption in procurement processes. The population of study comprised of 300 employees of Total Kenya Limited. Stratified random sampling technique was used to select the sample.

The study used stratified sampling technique; the strata’s was derived from the various employment levels that is top, middle and low level management. The study used a proportion of 15% from each stratum to select 45 respondents. The study relied on primary as well as secondary data. Primary data was collected through questionnaires structured to meet the objectives of the study. The questions were both open ended and closed ended. Secondary data was collected from relevant literature review, business magazines, journals, internet and other relevant materials. Responses in the questionnaires were tabulated, coded and processed by use of a computer Statistical Package for Social Science (SPSS) version 20 to analyze the data descriptive statistics such as mean and standard deviation was used. Tables, pie charts, and graphs were also used to present responses and facilitate comparison.

From the study, it was revealed that the impact of ICT adoption on procurement processes mainly refers to time reductions and quality improvements, rather than cost reductions as reported by many authors. The old view that ICT applications are associated with cost reductions is contested in this research. We found that company is likely to realize improvements in cycle time reductions and process quality. In terms of ICT adaptability, this study found that the company had not adopted more complicated e-business applications. From the study it is also clear that the adoption of ICT applications is not exclusively a matter of resources on the contrary, operational compatibility and the level of supply chain collaboration are two of the factors that play a determinant role in increased ICT adoption and impact assessment. The research was limited to a multinational company and thus the researcher recommends for further study in the topic of ICT adoption among the Sme’s sector and an analysis of the challenges experienced.

Title: EFFECTS OF INFORMATION COMMUNICATION TECHNOLOGY ADOPTION ON PROCUREMENT PROCESS IN KENYA’ S OIL INDUSTRY: A SURVEY OF TOTAL KENYA LIMITED MOMBASA COUNTY

Author: Daniel Kinuthia Wanjiru, Ali Ibrahim Abdalla

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

Research Publish Journals

Vol. 2, Issue 2, October 2014 - March 2015

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EFFECTS OF INFORMATION COMMUNICATION TECHNOLOGY ADOPTION ON PROCUREMENT PROCESS IN KENYA’ S OIL INDUSTRY: A SURVEY OF TOTAL KENYA LIMITED MOMBASA COUNTY by Daniel Kinuthia Wanjiru, Ali Ibrahim Abdalla