Challenges To Implementation Of Electronic Procurement In The Construction Sector

Abstract

Construction is a strategic industry in a developing economy as it is core for structures to be utilized for industrial, commercial and household purposes. Electronic Procurement is the business-to-business or business-to-consumer or business-to-government purchase and sale of supplies, work, and services through the internet as well as other information and networking systems. The overall objective was to establish challenges affecting the implementation of Electronic Procurement in the Kenyan construction sector. This study followed a descriptive research design. The study targeted 1 procurement manager, 1 supply chain manager and at least 3 procurement supply chain officers from 58 companies based in Nairobi and this gave a total of 86 respondents. The study adopted stratified sampling and questionnaires were used as instruments of data collection instruments. The obtained questionnaires data were coded and organized in excel spreadsheet and analysis done through excel and SPSS software. Pearson’s correlations analysis was conducted at 95% confidence interval so as to establish the relationship between dependent and independent variables. The results of the analysis were presented in the form of tables, charts and percentages in a manner that is both simple and comprehensive and then used to complete the research report as per the survey objectives and research questions. The study found out the benefit of electronic procurements which included visibility of spent, increases productivity, reducing costs, encourages use of technology and improved controls and that company had not adopted electronic procurement and that technology had inhibits electronic procurement in most of the organizations due to technological changes. The study further reveal that if employees do not have adequate knowledge and skills in information and communication technology, the implementation of Electronic Procurement may not be successful. The study found out legal framework influences the implementation of Electronic Procurement greatly where legal issues relating to licensing and issues of copyright, regulatory compliance, sharing of information, coupled with poor systems and structures where major inhibitors of Electronic Procurement. The study concludes that technology was part of the challenge to Electronic Procurement implementation in the construction sector, employees in the construction sector are not ready to accept Electronic Procurement in their organization due to incompetence and preference, top management did not support Electronic Procurement initiatives in the organization appropriately and legal framework being the back bone of any business operation was also found to have a major impediment to the implementation of e-procurement systems. The study recommends that the organizations in the industry should hire competent staffs and deploy them appropriately according to their skills and competence, change initiatives should begin and supported by the senior management so that the employees can follow suit should strengthen its internal regulations to help the organizations to adhere to code of good practice as so that they can influence the economy much better.