The role of e-procurement in purchasing management

This exposition summarises research published in several academic articles, in order to meet the requirements of PhD by publication. The focus of the work is on the role of electronic procurement in management of the purchasing function. From the late 1990s a number of independent e-procurement mechanisms were launched which offered potential benefits such as increased order accuracy, transaction efficiency and greater integration between trading partners. At the outset of this programme of research, e-procurement was therefore an emerging phenomenon with little academic research and presented an opportunity to investigate a largely unexplored area. Edmondson and McManus (2007) suggest that for nascent, as opposed to mature areas of research, where few formal constructs or measures exist, an exploratory, qualitative approach is required. This research followed such an approach through the use of case studies, involving observation, participation and interviews with key organisational actors. Each paper makes use of several cases in order to compare and contrast results from different organisations and to draw conclusions from multi-case analysis. The published articles focus on the impact of core applications within e-procurement, including online reverse auctions, electronic marketplaces, online catalogue sites, and buying systems covering the ‘requisition to pay’ cycle. The findings from the papers address a number of core themes in purchasing management. In considering buyer-supplier relationships, it was observed that such dyads are driven by traditional buyer negotiation factors such as segmentation, power and price and that use of eprocurement applications tended to enforce such traditional behaviours. In relation to the potential for integration, the study found that integration between firms was barely affected, as the concept of integration was neither an objective nor a business case driver for e-procurement adoption. This situation reflects the finding that procurement managers pursue functional targets rather than supply chain-level objectives. However, other significant effects from e-procurement adoption were noted such as the tendency by buyers to reduce supplier numbers and a move to re-engineer the procurement function in buying firms, through automating transactional processes. The research finds that e-procurement does not have a deterministic impact on purchasing management, and that it acts as an enabler to more effective management of the function though the way its different mechanisms are deployed. The exposition establishes that e-procurement is used in relation to supply conditions which are characterised by both ‘markets’ and ‘hierarchies’, but that it is the predefined purchasing strategy of the firm, rather than available technology solutions, which determines when markets and hierarchies are used. Additionally, an original model is introduced, focusing on developing an e-procurement policy which can support strategic purchasing goals. This model extrapolates findings from stages in the research, and marries together elements from various papers and frameworks therein, to produce some guidelines for adoption of this technology

Creating business value through e-marketplace trading

Electronic marketplaces (e-marketplaces) have been researched over many years from the study of electronic data interchange (EDI) systems to the current internet based trading platforms. Early e-marketplaces connected a buyer and supplier using proprietary systems that established a market hierarchy. The buyer was responsible for the system, established the terms of trade and the electronically enabled supplier could connect to the system. These systems were costly to build, which limited their use, and only organisations with an integrated system could use them. The web based e-marketplaces opened up the possibility of connecting many buyers and suppliers and enabling electronic transactions. The e-marketplace offers opportunities for establishing trade relationships with many organisations across the world. Business to business (B2B) e-commerce is a significant part of the Australian economy and there are opportunities to take advantage of e-marketplace trading. One of the advantages of electronic trading is the ability of the technology to deliver transaction benefits; these can have a significant impact on organisations regardless of organisational size. However, despite the potential of the e-marketplace to deliver organisational benefits there have been limited studies which consider the strategic implementation of e-marketplace trading. Organisational strategy and the implementation of strategic initiatives involve interactions between organisational structures and agents. The analytical dualism this represents complicates uncovering the fundamental causes of e-marketplace participation. Not only does the adoption of e-marketplace trading impact on the buyer and supplier organisations, it introduces the e-marketplace vendor organisation and the e-marketplace technology into the participation decision. The complexity of the interactions across organisational structures and between organisational agents and technology adoption can produce a diversity of outcomes. The philosophical underpinning of critical realism for the study is supported by the lack of understanding as to why, and in what circumstances, organisations successfully participate in e-marketplace trading. The critical realist philosophy provides the opportunity to understand the interrelationships between context, organisational structures and agents and identify the causal mechanisms involved in producing various outcomes. It allows for the development of middle level theory as existing theories are examined to explain the perceived phenomena. Large organisations operating in Western Australia are used as case studies to uncover the causal relationships between context, structures and agents that can produce successful, strategic implementation of e-marketplace participation. Existing literature in relation to e-marketplaces and IT adoption is used to develop the research questions and formulate the interview questions. The structured case methodology is used to analyse each case and relate the findings to possible explanatory theories. Context, mechanism and outcome patterns, identified in each case, are presented. Building on economic market, institutional and network theories the research identifies organising vision theory and community discourse as explanations for organisational legitimation that can circumscribe the use of e-marketplace trading. Six types of community group that influence organisational adoption of e-marketplace technology are identified. The research suggests that the influence of these groups within the organisation, the fit with organisational culture and strategic objectives can prevent or instigate change. Further, the decision making process supported by the group (or group member) is more influential in the strategic adoption of the e-marketplace than the ability of the technology to deliver efficiency or transaction processing gains. This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how much their decision making is influenced by organisational and environmental features. The thesis contributes to the discussion on organising vision theory, e-marketplace trading and business value creation. It demonstrates the application of the structured case study methodology to research that is underpinned by critical realism

Analysing critical success factors for supporting online shopping

Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Online shopping is nowadays is a highly frequent action but there are several critical factors that have to be considered for enabling websites and platforms to be able to offer all necessary requisites for guaranteeing user friendly, secure and also enjoyable shopping experiences to clients, offering them exactly what they expect to buy, and quickly find, among a huge offer available online. In this paper, a set of considered critical success factors are analysed on a set of top ranked websites, about luxurious furniture, to understand to what extent these critical factors are satisfied. The results can be taken into consideration for implementing a successful business through e-commerce from herein analysed perspectives.(undefined)info:eu-repo/semantics/publishedVersio

A conceptual framework for the adoption and implementation of online reverse auctions in South Africa

Digital technologies enable a deep rationalisation in the purchase of supplies between organisations, with positive cost-reducing spin-offs on wise e-procurements adoptions with savings of up to an 8-12% average to the purchases total. To this effect, web-based systems, online reverse auctions (ORAs) emerge as the most cost-efficient options, from the goods and services supply chain, as well as administration and governance perspective. ORAs are beginning to replace traditional paper-based manual procurement transactions and face to face negotiations effectively. Problem and Purpose – The project undertook to explore the level of ORAs adoption and usage by local organisations. The aim was to understand and explain the status-quo, with a goal of devising a facilitative framework for improved adoptions and use of ORAs in the South African public and private business contexts. Design/methodology/approach – The main research question How can the adoption (including implementation and use) of Online Reverse Auctions (ORAs) be improved among the private and public business enterprises in South Africa? To address this, a mixed methods approach was adopted, using the survey and interviews on selected 100 procurement professionals, executives, project managers and procurement specialists and practitioners. Findings – The study has found that ORAs should be implemented in South Africa when all suppliers are empowered to participate – the basic reasons being that they would save costs, and technology advancement simplifies and standardise processes. Furthermore, the effect of perceptions on online reverse auctions on adoption, implementation and purpose of ORA and research findings provided possible ways to improve the tool to be effective in the context of developing countries like South Africa Furthermore, findings also call for improved implementation of ORAs in South Africa. Research limitations/implications – Regulations around the procurement and SCM function in both the private and the public sector (though the private sector regulations are not as stringent and the public sector) contributed significantly on the progress and the availability of information from participants. Originality/value –The current existing models, frameworks and online reverse auction tools are mainly supporting and designed for established, mature and developed markets. It is required that appropriate tools and processes to conduct and implement online reverse auctions are necessary. Hence the newly proposed online reverse auctions conceptual framework.Ubuchwepheshe bedijithali buvumela ukulinganisa okujulile, ekuthengeni izinto phakathi kwezinhlangano, ngemiphumela emihle enciphisa izindleko ekutholweni kokuthengwa okuku-inthanethi okuhlakaniphile; ikakhulukazi, ekongeni okungaba khona okulinganiselwa ku-8% kuya ku-12% kwenani eliphelele lokuthenga. Njengezinhlelo ezisekelwe kusizindalwazi, ukuqhudelana kwabahlinzeki ku-inthanethi (ama-ORA) kuvela njengokunike amandla okonga imali, kokubili kusukela kuchungechunge lokuhlinzeka, imibono yokuphatha neyokubusa. Ngenxa yalesi sizathu, ama-ORA aseqalile ukufaka esikhundleni sezingxoxo zokuthengwa kwempahla ezisekelwe ephepheni lendabuko kanye nobuso nobuso emisebenzini yesimanjemanje yochungechunge lokuhlinzeka ngempahla kunqubo yokucabanga phambili yeNguqoko Yezimboni yesine (4IR) esekelwe ohlelweni lokuhlinzeka ngempahla emhlabeni wokuncintisana. Akumangalisi-ke ukuthi abamukeli balobu buchwepheshe obusha babonakala bebambe iqhaza ekuqhudelaneni nabangebona abamukeli emnothweni womhlaba wonke, nokuncintisana ngokwandayo. Inkinga nenjongo - Ngokusebenzisa inzuzo yokwengeza inani lezinhlelo ezizenzakalelayo ezinqubeni zokuthengwa kwempahla, umbhali wale phrojekthi wayefuna ukuqonda izinga lokwamukelwa nokusetshenziswa kwama-ORA yizinhlangano zendawo eNingizimu Afrika. Inhloso bekuwukuchaza isimo sezwe samanje. Umgomo ekugcineni kwaba ukusungula uhlaka olusizayo lokuthuthukiswa kokutholwa kanye nokusetshenziswa kwama-ORA ezimeni zamabhizinisi zikahulumeni nezizimele eNingizimu Afrika. Ukwenza/indlela yokwenza/indlela yokusebenza – Kule nqubo, kwaphakanyiswa umbuzo wocwaningo olandelayo: “Kungathuthukiswa kanjani ukwamukelwa (okuhlanganisa nokusebenza kanye nokusetshenziswa) kokuqhudelana kwabahlinzeki ku-inthanethi (ama-ORA) phakathi kwamabhizinisi azimele kanye namabhizinisi kahulumeni eNingizimu Afrika?” Ekufuneni izimpendulo, kwasetshenziswa izindlela ezixubile. Izinhlelo ze-ORA ziyingxenye yobuchwepheshe obusha lapho ukuhlaziya kwawo kungenziwa kangcono ngemibono yokwamukela ubuchwepheshe. Isifanekiso sokwamukela sobuchwepheshe (i-TAM) kanye nemibono ehlobene ngaleyo ndlela yasetshenziswa yomibili njengezingalizi zokuqoqo ukukhanya komqondo nokuhlaziya ophenyweni. Ngokwenqubo, inhlolovo kanye namasu okuxoxisana asetshenziswa ukuqoqa imininingwane yochwepheshe abakhethiwe abayi-100 bokuthenga, abaphathi, abaphathi bamaphrojekthi kanye nochwepheshe bokuthengwa kwempahla kanye nabasebenzi ezimbonini ezahlukahlukene zonkana zikahulumeni nezizimele. Okutholakele kukhomba igebe mayelana nokuqwashisa kanye nokusebenza kwezinhlaka zokwamukela nokusebenzisa ngempumelelo ama-ORA ezimbonini zikahulumeni nezizimele eNingizimu Afrika. Ukunika amandla bonke ababambiqhaza mayelana nokuqwashisa nekhono, ngakho-ke kuyaphakanyiswa kulo mbhalo wobuhlakani wokuthola iziqu. Ukuphuthuma kokuthuthukisa ubuchwepheshe be-ORA kubabambiqhaza abanenselelo yokuncintisana esimeni sezwe elisathuthuka kuyaphakanyiswa. Njengendlela yenzuzo eqenjini lephrojekthi ekuqaleni kokuthuthuka kwayo locwaningo, uhlaka oluvumayo lokusiza ukubamba iqhaza okunjalo (ukwamukelwa kanye nokusetshenziswa) kuma-ORAs ngaleyo ndlela kuhlongoziwe kokutholakele. Imikhawulo yocwaningo/imithelela - Imininingwane kulolu phenyo itholwe kusampula esikhundleni sesibalo sabantu esiphelele semikhakha kahulumeni nezimele, okusho ukuthi imibono ehlukile evela ezimeni eziyinqaba ihlala ingaqondakali, okunikeza ithuba lokucwaninga okwengeziwe ngesihloko. Okwangempela/ukubaluleka - Izifanekiso ezikhona, izinhlaka namathuluzi kubonakala kuvumelana nezimo zezimakethe ezimisiwe, ezivuthiwe nezithuthukile. Ngakho-ke amathuluzi nezinqubo ezifanele kufanele kuthuthukiswe njengokuphuthumayo ukuze kuqhutshwe futhi kusetshenziswe ukuqhudelana kwabahlinzeki ku-inthanethi ukuze kunikezwe izixazululo ezikhona kuzo zonke izindawo zokuthuthukiswa komnotho. Kungale ndlela ephusile lapho kuphakanyiswa uhlaka lomqondo olusha oluhlongozwayo ekuqhudelaneni kwabahlinzeki ku-inthanethi kulokho okutholwe yile phrojekthi yocwaningo.Didiriswa tsa theknolotsi di nolofatsa lebaka le legolo la thekisetsano ya dithoto magareng ga dikgwebo, ka dikhamphani tseo di fokotsago ditshenyagelo ka go somisa kgwebisano ye bohlale ya inthaneteng; kudukudu, ka dipolokelo tseo di akanyetswago go fihla go 8% go ya go 12% ya palomoka ya ditheko. Go swana le mananeo a inthaneteng, difantisi tsa ribese tsa inthaneteng (diORA) (mo barekisi ba phenkgisanela go reka go morekisi o tee) di laeditse go fokotsa ditshenyagalelo, go tswa go dikgopolo tsa tshepediso ya kabo, taolo le puso. Ka lebaka le, diORA di thomile go soma legatong la tsela ya tlwaelo ya ditherisano le dithekisetsano ka sebele, ka go somisa mokgwa wa sebjalebjale wo o nago le ponelopele wo o theilwego godimo ga tshepediso ya kabo mo nakong ya Rebolusene ya bo4 ya Intasteri (4IR) lefaseng la kgwebo la diphadisano. Ka gona ga go makatse ge basomisi ba theknolotsi ye e mpsha ba bonala ba le maemong a kaone go fetisa dikgwebo tseo di sa somisego mokgwa wo go kgwebisano ya lefase, le ikonoming yeo e golago ka lebelo. Bothata le morero – Ka go somisa tshedimoso ya tlaleletso ya boleng ka go somisa mananeo a khomphutha go mekgwa ya kgwebisano, mongwadi wa protseke ye o be a nyaka go lekola maemo le tshomiso ya diORA ka mekgatlo ya ka Afrika Borwa. Maikemisetso e be e le go hlalosa maemo a bjale. Tebanyo mafelelong e be e le go hlama foreimeweke ya nolofatso ya tshomiso le tiriso ye e kaonafaditswego ya diORA ka maemong a dikgwebo tsa setshaba le tsa phoraebete ka Afrika Borwa. Tlhamo/mokgwa wa nyakisiso/mokgwa – Mo go tshepediso ye, go botsisitswe potsiso ya nyakisiso ye e latelago: “Naa tiriso (go akaretswa phethagatso le tshomiso) ya difantisi tsa ribese ya inthaneteng (ORA) di ka kaonafatswa bjang go dikgwebo tsa phoraebete le tsa mmuso ka Afrika Borwa?” Ka go fihlelela dikarabo, go somisitswe mokgwa wo o kopantswego. Mananeo a ORA ke karolo ya mananeo a maswa gomme a ka sekasekwa ga bonolo ka go somisa diteori tsa mananeo a theknolotsi. Mmotlolo wa tiriso ya theknolotsi (TAM) le diteori tse di amanago le wona di somisitswe bjalo ka dilentshe tsa kgopolo le tsa tshekatsheko ya nyakisiso. Go somisitswe mokgwa wa nyakisiso ya tekolonyakisiso le dipoledisano go kgoboketsa datha go tswa go batseakarolo bao ba kgethilwego ba ditsebi tse 100, bareki ba thoto, bahlankediphethisi, balaodi ba diprotseke le ditsebi tsa theko le basomi ka diintastering tsa go fapana go ralala le mafapha a mmuso le a phoraebete. Dikutollo di laetsa tlhaelelo ya temogo le ka diforeimeweke tsa phethagatso go somisa le go phethagatsa diORA ka mafapheng a mmuso le a phoraebete ka Afrika Borwa. Go fa batseakarolo ka moka tsebo le bokgoni, go sisintswe ka thesising ye. Boitlhaganelo bja go kaonafatsa theknolotsi ya ORA go batseakarolo bao ba hlokago bokgoni go naga ye e hlabologago go a sisinywa. Bjalo ka tsela ya go tseakarolo go nyakisiso ya thuto e, dikutollo tsa nyakisiso ye di sisinya foreimeweke ye e kgontshago go nolofatsa tshomiso (tiriso le tshomiso) ya diORA. Dikiletso/Diphihlelelo tsa nyakisiso – Datha ya nyakisiso ye e fihleletswe ka mokgwa wa go sampola e sego ka go somisa basomi ba mafapha a mmuso le a phoraebete ka botlalo, se se hlalosa gore tshedimoso ya moswananosi ga se e fihlelelwe, gomme se se laetsa hlokego ya dinyakisiso tse dingwe thutong ye. Boithomelo/boleng – Mmotlolo ye e lego gona, diforeimeweke le didiriswa di laetsa di soma gabotse go maemo ao a theilwego dikgwebong tseo tse kgolo. Didiriswa le mekgwa ya ditshepetso e swanetse go kaonafatswa ka boitlhaganelo go laola le go phethagatsa difantisi tsa ribese tsa inthaneteng go tlisa ditharollo go tlhabollo ya ekonomi lefase ka bophara. Ka go realo diphihlelelo tsa protseke ya nyakisiso ye di sisinya foreimeweke ye mpsha ya difantisi tsa ribese tsa inthaneteng.Graduate School of Business LeadershipD.B.L

Identification and realisation of the benefits of participating in an electronic marketplace : An interpretive evaluation approach

Electronic marketplaces have proliferated as use of the Internet has become widespread in business. A rapid growth in the number of marketplaces, followed by a period of stringent consolidation, as market makers develop a greater understanding of effective business models, has resulted in a climate of uncertainty and confusion. As with many aspects of e-commerce the drive towards participation is fuelled less by strategy planning than by a fear of lagging behind competitors or losing first mover advantage. In this climate of uncertainty organisations often bypass effective evaluation of the benefits that can be realised from participation in e-marketplaces, thereby exacerbating the process facing them and hampering effective decision-making. Evaluation is perceived as a fraught subject within the Information System field, and particularly within the business community which adheres to tried and trusted, albeit often inappropriate, methods such as financial or technical evaluation. The difficulties involved in effective evaluation of systems are well documented; these will increase as systems become more pervasive throughout organisations and those of their trading partners. Calls for a more holistic approach to evaluation are increasing, based on a developing appreciation of interpretive methods of research within the Information Systems discipline. However, the understanding that the social, political and cultural factors affecting and organisation have an impact on the uses and advantages of systems is by no means universal, and empirical evidence of this view is only slowly emerging. This research examines the benefits that can be realised from participation in an electronic marketplace by taking an interpretive approach to the evaluation. It examines the nature of electronic marketplaces to provide clarity to a confused and dynamic environment. The study then focuses on the development of evaluation studies within the IS discipline to identify how an effective evaluation method for assessing the benefits of e-marketplace participation can be achieved. An empirical examination of an organisation’s participation in an electronic marketplace is used to identify the benefits that are realisable and the issues that impact on them. The case study is conducted through an interpretive lens, using a content, context, process (CCP) approach based on existing IS literature. This enables a crucial understanding of the internal and external environments influencing the organisation and its realisation of potential benefits. To allow for the range of interpretations and reflections required to fully address the complexity of the issues involved in such a case study, a variety of research influences such as dialect hermeneutics, critical realism and case study theory are drawn into the research model. The case study organisation’s motivation for participating in an e-marketplace was primarily cost savings. Over the two years of the study, several more potential benefits were identified, such as supply chain efficiencies, greater market awareness and a widening of the supplier base. However, the organisation’s commitments to its local and regional communities, its need to retain status and some consideration of existing relationships needed to be balanced against the gains that might be realised. In some cases the organisation chose to forgo a potential benefit in favour of socially or politically motivated actions. Cultural factors also influenced their actions, particularly as they moved towards extending participation in the marketplace to gain from a global sourcing strategy. The contribution of this research lies in two areas. Firstly, it was existing evaluation literature to development a framework for the evaluation of benefits in the complex area of electronic marketplaces, thereby extending and informing the call for more inclusive and interpretive evaluation studies. Secondly, the research contributes empirical evidence to support the recognition of benefits to be gained from electronic marketplaces and shows how the realisation of the economic benefits is impacted by the social, political and cultural factors that influence an organisation

Analysis of Current Supplier Relationship Management Practices: A Solution Proposal

The work contributes with the existing literature by investigating current SRM practices. Based on the research, the author has designed an information system framework, which provides companies with an innovative SRM solution to manage their indirect material purchasing process through an environment that supports companies entire plan-to-order activities, including functionalities such as central data management, spend data management, e-sourcing and the usual e-procurement features

Risks, Controls and Business Value of IT-Enabled Interfirm and Intrafirm Processes

There have been significant advances in the information systems (IS) literature about the business value that can be realized through information technology (IT) investments and the mechanisms through which IT creates different facets of business value. We identify three important gaps in understanding the literature on IT business value. First, it is unclear how risk arising from deficiencies in a firm’s information environment, along with internal and external contextual factors, affects a firm’s IT implementation choices. Second, it is unclear how IT resources in a focal domain need to be combined with knowledge resources in the same domain and IT resources in other domains to develop process capabilities and create process-level benefits. Third, it is unclear what risks IT-enabled process innovations create for different process stakeholders and what controls can be applied to mitigate these risks. My dissertation addresses the above three gaps in three essays. The first essay examines the influence of a firm’s information risk on its prioritization of accounting enterprise systems (AES) relative to complementary enterprise systems and the moderation of this relationship by the weaknesses of internal controls and environmental uncertainty characteristics. The second essay focuses on the impact of AES implementation on a firm’s internal controls process, and the complementary roles of managerial competence and enterprise systems implemented in other domains related to the internal controls process of the firm. The final essay explores the risk factors that can arise for buyers and suppliers due to the use of reverse auctions, and the controls that can be applied to mitigate the key risk factors. In terms of research methods, the first two essays apply econometric analysis to panel datasets constructed from multiple sources and the third essay uses a combination of Delphi studies and semi-structured interviews. Collectively, the essays advance our understanding of (1) the factors underlying a firm’s prioritization of IT investment choices; (2) the mechanisms through which IT resources, in combination with human expertise, create business value; and (3) the risks introduced for different stakeholders by the adoption of IT-enabled process innovations and the controls that can be used to effectively mitigate them

Adoption of E-Procurement Strategy and Procurement Performance in State Corporations in Kenya (A Case of Kenya Revenue Authority)

E-procurement is the use of information technology in managing the procurement process in the organization with an aim of improving the procurement process. The study is aimed at determine Role of E-procurement strategies in enhancing procurement performance in state corporations in Kenya with reference to Kenya Revenue Authority.  The study focused on the management and activities of the staff of Kenya Revenue Authority, Times Towers, Haile Sellasie Avenue Nairobi and will include the staff from relevant Departments in the Organization. The researcher adapted a descriptive research design as there are variables which cannot be quantified but can only be described in descriptive statistics. Through random stratified sampling method the researcher selected 45 respondents out of total of the 90 population of the staff from relevant Departments and will stratified into procurement management staff, Stores management staff, Operations and management Department staff in the organization. In addition, 20 suppliers were purposively selected to participate in the study. Primary was collected through administering of questionnaires to the respondents. Quantitative and qualitative techniques of data analysis was used to analyze Data and included the use of SPSS version 21 data analysis methods and the findings presented through charts, tables and graphs for simple understanding of the findings. From the findings the study, conclusions were drawn and recommendations made on the implementation of Electronic procurement at Kenya revenue authority. Findings of the study indicate that electronic communication positively influenced procurement performance in Kenya Revenue Authority as it leads to instant responses and real-time information. The purpose of e-procurement is to allow the purchasing function to focus on more value adding activities such as serving customers rather than on operational issues. The potential of e-procurement is so great that it has turned the formerly looked down upon traditional function into a competitive weapon. The findings also show that electronic order processing positively influenced procurement performance in Kenya Revenue Authority. Studies have shown that companies have found a lot of benefits from their e-procurement projects which include, but are not limited to: process efficiencies amounting to annual savings, ability to link directly into existing systems, such as ERP, reductions seen in lead times within the procure-to-pay cycle. The findings also indicate that self-invoicing on behalf of clients can add to the bottom line, month-end reconciliation can end the problem of the wrong items being ordered or the wrong price being offered as business processes have been streamlined and all are working off the same catalog. The internet, via e-procurement, has made procurement more effective and efficient in the sense that purchasing of goods and services by organizations is made easier, faster and cheaper. Level of customer service influenced procurement performance in Kenya Revenue Authority. An organization to be truly effective, every single part of it, each department, each activity and each person and each level must work properly together, because every person and every activity affects and in turn is affected by others. Cost of E-Procurement positively influenced procurement performance in Kenya Revenue Authority. The amount of money that the organization saves when it adapts e-procurement cannot be over looked by any organization that is out to reduce its operation overheads. Proper use of information technology in an organization coupled with training of staff in systems operations can highly reduce the cost of operation in an organization. Keywords: E-procurement strategy, Procurement performance, State corporations, Electronic communication, Electronic order processing, Customer service level, Cost of E-procuremen

An Institutional Perspective on Two-sided Networks

In the early 2000s, the term ‘two-sided network’ has been coined to describe a form of organizing economic activities related to novel uses of information technology. While it is evident that two-sided networks make use of the novel possibilities of information technologies to organize economic activities, they have not yet been studied from an institutional perspective to shed light on the nature of this phenomenon. We suggest a way to remedy this situation by developing a novel classification scheme to systematically describe institutionally distinct forms of two-sided networks. We find that the phenomenon of two-sided networks may herald an entirely new way of organizing economic activities, possibly replacing, or evolving from, traditional forms. Moreover, within certain limits, there may be substitutive relationships between forms of two-sided networks which suggests that there are alternatives to forms which currently dominate the public and academic attention and which may be more desirable