Effect of E-Procurement Systems on Organizational Efficiency in the Hospitality Industry: A Case of Radisson Blu Hotel Nairobi

Abstract

With the advent of technology, e-procurement systems are increasingly gaining popularity in its use in enhancing the efficiency of an organisation. This study sought to find out the effect of e-procurement systems on organizational efficiency in the hospitality industry using a case of Radisson Blu Hotel Nairobi. The study used a descriptive research design and conducted a census study of 72 respondents. The study was guided by the following objectives: to find out the e-procurement systems used, to establish the measures of organisational efficiency, and to investigate the effect of e- procurement systems on the organisational efficiency at Radisson Blu Hotel Nairobi. Data were collected using questionnaire, and the analysis of data was done using Statistical Package for Social Sciences (SPSS) - (Version 23). The key finding of the study was that the use of e-procurement systems had an effect on cost, time, information and transaction efficiency as strongly agreed by 57.9%, 47.4%, 44.7% and 55.3% of the respondents respectively. The study also found that there was a moderate relationship between e-ordering and cost efficiency improvement, e-invoicing and transaction efficiency and e-awarding with time, cost and information efficiency. The study recommended that the organisation improves the use of e-ordering and e- procurement systems.