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Procurement Automation and Organizational Performance of State Corporations in Kenya: Evidence from a Cross-Sectional Survey

Author

Listed:
  • Benson Mugoh Miano

  • Denis Chege

  • Charles Ndeto

Abstract

Purpose: The purpose of this research was to investigate how automation of procurement activities impacts organizational performance among state corporations in Kenya. Methodology: The study used a positivist, descriptive cross-sectional survey design. The target population comprised 414 state corporations in Kenya, from which a sample of 203 was drawn using Yamane's (1967) formula. Data were collected from 167 senior procurement and supply chain managers via a structured questionnaire with a five-point Likert scale, yielding an 82.3% response rate. Procurement automation was operationalized across three sub-scales — electronic sourcing, electronic payment processing, and automated evaluation and reporting — while organizational performance was measured using indicators of service delivery effectiveness, value for money, and quality of procurement outcomes. Data were analyzed using Pearson correlation and multiple ordinary least squares (OLS) regression in SPSS v. 26. Findings: Though electronic payment processing demonstrated a notably low item-total correlation (r = 0.134), its utility is discussed alongside evidence of its independent predictive use in the regression model. Overall, the regression model was significant (F (3,163) = 29.130, p < .001) and accounted for 34.9% of the variance in organization performance (R² = .349, Adj. R² = .337). Automated evaluation and reporting (β = .767, p < .001), electronic sourcing (β = .300, p < .001), and electronic payment processing (β = .243, p < .001) each significantly predicted organization performance. Unique Contribution to Theory, Practice and Policy: This research expands upon socio-technical theory and capability theory by suggesting that automation of procurement activities consists of distinct dimensions that each uniquely impact procurement performance. Findings provide policy guidance for prioritizing automated evaluation and reporting as the highest-impact dimension of procurement automation reform.

Suggested Citation

  • Benson Mugoh Miano & Denis Chege & Charles Ndeto, 2026. "Procurement Automation and Organizational Performance of State Corporations in Kenya: Evidence from a Cross-Sectional Survey," International Journal of Supply Chain and Logistics, CARI Journals Limited, vol. 10(4), pages 17-34.
    • Handle: RePEc:bhx:oijscl:v:10:y:2026:i:4:p:17-34:id:3746
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    1. Erica Bosio & Simeon Djankov & Edward Glaeser & Andrei Shleifer, 2022. "Public Procurement in Law and Practice," American Economic Review, American Economic Association, vol. 112(4), pages 1091-1117, April.
    2. Jiménez, Alfredo & Hanoteau, Julien & Barkemeyer, Ralf, 2022. "E-procurement and firm corruption to secure public contracts: The moderating role of governance institutions and supranational support," Journal of Business Research, Elsevier, vol. 149(C), pages 640-650.
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