Influence of E-Tendering Process on Procurement Performance in Geothermal Development Company in Nakuru, Kenya

Companies are under constant pressure to grow profitably in an increasingly competitive and rapidly changing business environment. Globalization and technology shifts require organization to reengineer their operations if they are to maintain competitiveness. To ensure customer satisfaction and customer loyalty, organizations have to work with their suppliers as well as the customers to ensure delivery of desired goods just in time. E-procurement, enabled by advance in ICTs, has been promoted as one way of improving procurement efficiency and effectiveness. As such, this study investigatedthe influence of e-tendering on procurement performance in Geo-thermal Development Company in Kenya. A descriptive research design was adopted in this study. The target population of this study was the procurement and logistics department’s staff in GDC Nakuru region which was 170 in total. Multi-stage sampling method was used where 97 respondents were selected as the study respondents. This study relied on primary data collected by use of questionnaires. The instrument was tested for validity and reliability where Cronbach's alpha was used to test the reliability of the instrument. The alpha values for all the variables were above 0.8 well above the recommended threshold of 0.7. Thus the instruments were deemed reliable for data collection in the study. Data collected was analyzed using Statistical Package for Social Sciences (SPSS). Findings were presented in form of descriptive statistics and inferential statistics and presented in tables accompanied with relevant discussion. The study established that e-tendering had positive significant relationship with procurement performance in geothermal development company and therefore concluded that it has a significant influence on procurement performance. Regression analysis indicated that e-tendering did not have a significant contribution on the variation in procurement performance in geothermal development company. Hence, to enhance procurement performance, e-tendering is not a major consideration.Therefore it was recommended that the company embark on a drive to make use of E-tendering, in its operations in order to improve on its procurement performance.