EFFECTS OF E-TENDERING ON ORGANIZATION PERFORMANCE IN PUBLIC SECTOR: A CASE OF NAIROBI CITY COUNTY GOVERNMENT

Abstract

The adoption of information and communication technologies in the public tendering process has seen a great rise owing to its related benefits such as cost and time reduction, increased efficiency and effectiveness, transparency and accountability, and customer satisfaction. In Kenya, the performance of the public tendering has been a challenge and the government is working to ensure fairness in expenditure of public funds. The government has made it mandatory for tendering of all public goods, works and services to be done through online platforms to enhance and improve performance of the procurement function. However, despite these measures, the performance of the Kenyan tendering function has been characterized by massive scandals and indignity. Therefore, this paper aimed at examining the effect of e-tendering on the performance of County Government of Nairobi. The study was guided by innovation diffusion theory and transaction cost theory. It utilised the descriptive research design and explanatory design. The target population comprised 750 respondents drawn from the finance, payment and information technology department. The study sample comprised 75 respondents selected from the three departments using stratified random sampling technique. The data was collected through the administration of the questionnaires to the selected sample. The collected data was sorted and coded and analysed through descriptive statistics with an aim of summarising the data, and inferential statistics, for the purposes of establishing any association between the variables, with the help of the Statistical Package for Social Sciences (SPSS) version 21. The presentation of findings was through tables. The correlation analysis results indicated that at 95% confidence interval, E-tendering practices had positive and significant relationship with the performance in Nairobi City County Government at 0.307 and P =0.041 < 0.05. The study recommended that the Nairobi City County pay a lot of attention in adopting and implementing various aspects of e-tendering to ensure that its activities remain improved.