ICT ADOPTION AND PROCUREMENT PERFORMANCE OF LARGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Wilfred Oriki Atisa, Dr. Thomas Mose

Abstract


There has been a problem in the procurement performance of manufacturing firms in Kenya. A report by KNBS, Economic Survey (2021) indicates that the contribution of the manufacturing firms to the Gross Domestic Product (GDP) reduced from 9.3% in 2016 to 7.6% in 2020. The general objective of the study is to examine the effect of ICT adoption on procurement performance of large manufacturing firms in Nairobi City County, Kenya. Specifically, the study sought to assess effect of perceived cost of ICT adoption on procurement performance of large manufacturing firms in Nairobi City County, Kenya, and to establish effect of ICT technical capacity on procurement performance of large manufacturing firms in Nairobi City County, Kenya. This study used a descriptive research design. The study targeted 630 management employees working in 105 large manufacturing firms. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. Stratified random sampling technique was used to select a sample of 239 respondents from the target population. The study’s primary data was obtained using structured questionnaires. The Statistical Package for Social Sciences (SPSS) version 25 software was used to analyze the data. Qualitative data was analysed using content analysis and presented in prose form. Quantitative data was analysed using descriptive and inferential analysis. Descriptive statistics such as frequency, percentages, and means were used. Pearson correlation coefficient was used for testing strength and direction between the independent and the dependent variables. A multiple regression model was used to test the significance of the influence of the independent variables on the dependent variable. The findings were presented in Tables and figures. The study concludes that perceived cost of ICT adoption has a positive and significant effect on procurement performance of large manufacturing firms in Nairobi City County, Kenya. The study also concludes that ICT technical capacity has a positive and significant effect on procurement performance of large manufacturing firms in Nairobi City County, Kenya. Based on the findings, implementing intuitive and easy-to-use procurement tools can enhance user adoption and efficiency, leading to improved overall procurement performance. In addition, this study recommends that manufacturing large firms should conduct a thorough cost-benefit analysis before adopting and implementing Information and Communication Technology (ICT) solutions.

Key Words: ICT adoption, Procurement Performance, Large Manufacturing Firms, Perceived Cost of ICT Adoption, ICT Technical Capacity

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References


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