Strategic Management Practices and Performance Of E-Procurement Among Non-Governmental Organizations in Kenya: A Case of Finn Church Aid

Abstract

NGOs work in environments that are complex, risky, and financially unpredictable. Research has shown that strategic management practices in NGOs assist them considerably as they struggle to link their vision, mission and roles clearly. The purpose of the study was to determine the role of strategic management practices in the performance of eprocurement among non-governmental organizations with a focus on Finn Church Aid. In order to achieve this, the study was guided by three objectives, namely, identifying the strategic management practices put in place, assessing the performance of e-procurement systems used, and examining the effect of strategic management practices on eprocurement performance at Finn Church Aid, Kenya. Also, the study underpinned Dynamic Capability Theory, Strategic Choice Theory and Agency Theory. It used a descriptive research design with a target population of 256 respondents from all the Finn Church Aid branches in Kenya. It used Yamane Taro (1967) to determine the sample of 156 respondents. The study used primary data that was collected using structured questionnaires. It pretested on 15 respondents from Danish Refugees Council, Kenya employees, which was 10% of the sample size. The study found that Finn Church Aid Kenya had adapted all the strategic management practices namely, strategy formulation, strategic planning, strategic implementation and strategic monitoring. To enhance eprocurement performance, the organization should invest in strategic planning, strategy formulation, strategy implementation and strategic monitory practices Particularly, the strategic implementation had a strong and significant relationship with e-procurement performance as r (0.757**) with a p-value of 0.000. The study also established that Finn Church Aid, Kenya, adopted strategy formulation in terms of vision clarity. This was confirmed by most of the respondents, 73% who strongly agreed that Finn Church Aid clearly stated its vision to partners. In terms of e-tendering, the study revealed that 74% of the respondents strongly agreed that Finn Church Aid advertised tenders and conducted the process online using this process. This study recommended that the organization should invest in employee training and development on strategic management principles and eprocurement best practices to enhance their knowledge and skills. The study also recommended that the organization should adopt a strategic approach to e-procurement to develop a clear e-procurement strategy aligned with the organization’s overall goals and objectives. The study further recommended that the organization should invest in eprocurement tools and platforms to streamline processes and improve efficiency.