Role of Entrepreneurial Orientation on the Relationship between Electronic-Sourcing and Procurement Performance among Medium-Sized Enterprises in Kenya

Abstract

E-sourcing has significantly enhanced the overall effectiveness of supply chains that are enabled by the Internet. In light of the significant and rapid global changes that the supply chain industry is currently facing, as well as the dynamic and complex environment, it is imperative to investigate the impact of entrepreneurship on the supply chain industry to adapt and survive in the market. This is because an increasing number of medium-sized enterprises can provide innovative solutions to existing supply chain pain points, despite the existing global challenges. This paper investigates the moderating role of entrepreneurial orientation on the relationship between e-sourcing and procurement performance of medium-sized enterprises in Kenya. Explanatory research design was utilized. Structured questionnaires were used to collect data. The target population of the study was 3427 from which a sample of 358 respondents was sampled from registered medium firms in Nakuru County, Kenya. Data analysis was carried out using Inferential & descriptive statistical techniques. The findings revealed that e-sourcing (β = 0.150, p = 0.000, <0.05) had a positive and significant effect on procurement performance. In addition, the study established that Entrepreneurial Orientation does not moderate the relationship between electronic sourcing and procurement performance (β = 0.009, p = 0.714 >0.05). The results of this study can provide useful guidance for the management of medium-sized enterprises. E-procurement technology or platforms play a significant role in procurement performance. Prior studies have examined direct effect relationship between e-sourcing and procurement performance. However, this paper introduces the moderating effect of entrepreneurial orientation on the relationship between e-sourcing and procurement performance