Influence of Internal Organizational Factors on E-procurement Adoption in Small and Medium-Sized Enterprises in Nyeri County Kenya

Abstract

Small and Medium-Sized Enterprises (SMEs) are considered as major pillars of the modern market economies given that they play critical economic and social roles world over more so in developing countries like Kenya. Though E-procurement provides benefits that SMEs could gain from, some internal organizational factors have inhibited effective E-procurement adoption in SMEs. The objective of this study was to assess the influence of internal organizational factors on E-procurement adoption in Small and Medium-Sized Enterprises in Nyeri County Kenya. The study hypothesized that internal organizational factors do not have a significant influence on E-procurement adoption in Small and Medium-Sized Enterprises in Nyeri County Kenya. The study was guided by the Resource Based Theory. In the study, internal organizational factors was the independent variable and E-procurement adoption was the dependent variable. The study used a self-administered questionnaire for data collection that was issued to 105Small and Medium-Sized Enterprise business owners within Nyeri County. A Pilot study was conducted by administering 5 questionnaires and reliability test done by use of Cronbach alpha. Data analysis was conducted using regression and correlation analysis in order to determine the relationship between the variables. The results were presented in tables and the findings discussed. Based on the findings the study concluded that internal organizational factors like employee knowledge, size of an organization, staff retention, trust on technology and perceptions of manager, influence E-procurement adoption in Small and Medium-Sized Enterprises. The findings of this study can assist in deepening the understanding of the challenges that hinder E-procurement adoption by SMEs for managers and policy makers as well as form a body of knowledge for referencing to scholars and academicians.

Keywords: Internal organizational factors, Small and Medium-Sized Enterprises, E-procurement

DOI: 10.7176/EJBM/12-33-04

Publication date: November 30^th 2020