FACTORS AFFECTING COMPUTERIZATION OF PROCUREMENT FUNCTIONS IN THE SERVICE INDUSTRY IN KENYA. A CASE STUDY OF CIC INSURANCE GROUP LTD

Abstract

The purpose of this study was to find out the factors affecting computerization of procurement functions in the service industry in Kenya. The study was guided by the following specific objectives; to find out the effects of employee competence and legal framework on adoption of computer based procurement. The researcher adopted descriptive survey research design using both qualitative and quantitative research. The study targeted 60 employees of CIC Insurance Group Ltd and a sample size of 39 respondents was selected using stratified sampling method. The Data Collection Instrument used was a questionnaire that was self-administered to the respondents. The collected data was analyzed using descriptive statistics and presented by use of tables. The results of the study revealed that computer based procurement adoption has an effect on the service industry in Kenya. It showed that the industry is committed to the adoption of the computer based procurement in-order to make the procurement procedures and cycle easy to the suppliers and departments. The research concluded that for computer based procurement to be adopted and to be more effective and efficient they should ensure that employee competence is maintained by ensuring that their employees are trained on related issues so that they can understand more about computer based procurement and by also letting them understand their legal framework that is understanding their networks with their suppliers that they are transacting business with them. The study recommended that there is need for further research on challenges facing the adoption of computer based procurement in the other industries in Kenya.