ABSTRACT
Electronic procurement is a crucial operational aspect that county governments have embraced within their procurement departments. Its primary objectives are to reduce the time required for procurement processes, enhance transparency, and improve overall efficiency levels. Notwithstanding these factors, it has been reported that some counties in the western area of Kenya continue to have difficulties pertaining to extended lead times, subpar supply performance, and insufficient efficiency in procurement procedures. The objective of the study was to assess the effect of electronic ordering on the supply chain performance in county governments in Western region, Kenya. The study adopted dynamic capability theory. The study’s target population consisted of 216 respondents, and a stratified random sampling technique was employed to choose 140 participants from the pool of county government employees. Both primary and secondary data were gathered. Pilot test was conducted in Kisumu County. The reliability of the measurement instrument was assessed using Cronbach’s Alpha. The validity of the study was assessed using the expertise of professionals and the utilization of factor analysis. The data underwent analysis using SPSS version 27. Both descriptive and inferential statistics were acquired. Descriptive statistics comprise measures frequencies and percentage. Inferential statistics encompass the utilization of multiple regression analysis. The data was presented in tabular format. Multiple regression analysis indicated that electronic ordering had a significant effect on supply chain performance by reducing the inventory cost with a coefficient of -0.495. The study depicted that 38.8% variation in supply chain performance is caused by electronic ordering. The study may help policymakers to create e-procurement regulations and the information from the study findings may also be used by investors to help in deciding how much money they should spend on electronic purchases in order to cut costs and increase profits. The study concluded that electronic ordering affected supply chain performance negatively and significantly through reduction of inventory cost. The study therefore recommended that county government should effectively adopt electronic ordering and train its employees on how to use electronic ordering efficiently to minimize use of paperwork in the organization. Reduced paperwork in county government will help to cut down the inventory costs.