Influence of Electronic Payment on Business Efficiency in Petrol Stations in Nyanza Region, Kenya

Robert Ouda Owuor; Fredrick Kiongera; Evans Kwendo

doi:10.51867/ajernet.4.2.47

Authors

Robert Ouda Owuor
robertowuor@gmail.com
MBA Procurement Student, School of Business and Economics, Masinde Muliro University of Science and Technology, Kenya https://orcid.org/0009-0001-4130-6140
Fredrick Kiongera PhD, Senior Lecturer, School of Business and Economics, Masinde Muliro University of Science and Technology, Kenya https://orcid.org/0000-0002-2615-7343
Evans Kwendo PhD, Senior Lecturer, School of Business and Economics, Masinde Muliro University of Science and Technology, Kenya

Keywords:

Business Efficiency, Electronic Payment, Petrol Stations

Abstract

The Oil Sector Over the centuries, the oil industry has remained a predominant player in the world’s economy. This sector is known for its great contribution to many nations. The National Oil Board states that consumption of oil and petroleum products is projected to grow from 4.5 million metric tons to 12 million metric tons by 2030, yet currently, petroleum products procured face challenges. Recent findings have shown low efficiency in the procurement process at petrol stations in the Nyanza region. The study specifically looked at the influence of electronic payments on business efficiency in petrol stations in the Nyanza region of Kenya. This study employed a descriptive study design with a target population of 134 and a sample of 100 employees of petrol stations in the Nyanza region of Kenya. The study used closed-ended Likert scale questionnaires for data collection. The data was analyzed using both descriptive and inferential statistics, where descriptive statistics involved frequencies and percentages. Inferential statistics are based on Pearson correlation and simple linear regression. SPSS software 23 was useful in the analysis. The findings were that electronic payment had a significant influence on business efficiency among petrol stations (t = 10.209, p< 0.05). The study recommends that petrol stations adopt electronic payment practices to minimize queues during physical payment. Furthermore, electronic payment eases audits and minimizes cases of corruption.

Dimensions

REFERENCES

Ambe, I. M., & Weiss, J. A. (2022). Procurement Challenges in the South African Public Sector. Journal of Transport and Supply Chain Management, 6(1), 242-261. https://doi.org/10.4102/jtscm.v6i1.63 DOI: https://doi.org/10.4102/jtscm.v6i1.63

Austin, G., & Laurence, W. (2021). Effects of supplier relationship on performance of cooperative supplier relationships. Journal of Operations Management, 22, 23-38. https://doi.org/10.1016/j.jom.2003.12.001

Aboelmaged, E. (2020). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29(1), 18-3. https://doi.org/10.2307/3172490 DOI: https://doi.org/10.2307/3172490

Abu-Elsamen, H., Chakraborty, & Warren, G. (2020). Performance Measurement and Metrics. Journal of Business Management Research, 18(2), 13-24.

Amayi, J., & Ngugi, C. (2018). Buyer-Supplier Relationships and Customer Firm Costs. Journal of Marketing, 65(1).

Bossone, M., & Massimo, H. (2016). Towards a "Theoretical toolbox for strategic sourcing." Supply Chain Management: An International Journal, 14(1), 3-10. https://doi.org/10.1108/13598540910927250 DOI: https://doi.org/10.1108/13598540910927250

Coase, R. (1939). Transaction Theory: An interdisciplinary review. Journal of Management, 31(6), 874-900. https://doi.org/10.1177/0149206305279602 DOI: https://doi.org/10.1177/0149206305279602

Energy and Petroleum Regulatory Authority. (2022). Creating and Maintaining a Successful Supplier Relationship through electronic payment system on petroleum products. Industrial and Corporate Change, 17(3), 407-429.

Kakwezi, S., & Nyeko, I. (2020). Benchmarking Supplier Development: An Empirical Case Study of Validating A Framework to Improve Buyer-Supplier Relationship. Management and Production Engineering Review, 7(1), 56-70. https://doi.org/10.1515/mper-2016-0007 DOI: https://doi.org/10.1515/mper-2016-0007

Kenya Revenue Authority. (2019). Kenya Revenue Authority Petroleum Report 2018/2019 Financial Year.

Manas, W. L. (2017). Transaction Cost Economics, Resource Dependence Theory and Customer-Supplier Relationships. Industrial and Corporate Change, 15(3), 497-529. https://doi.org/10.1093/icc/dtl008 DOI: https://doi.org/10.1093/icc/dtl008

Manav, D. (2017). Supply Chain Involvement for better product development performance. Industrial Management & Data Systems, 113(2), 190-206. https://doi.org/10.1108/02635571311303532 DOI: https://doi.org/10.1108/02635571311303532

Hsia, G., & Teo, C. (2015). Social behavior as exchange. American Journal of Sociology, 597-606.

Matunga, R., Nyanumba, C., & Okibo, R. (2018). Effect of supplier relationship management on organizational performance: A case study of Kenya Airways Limited. International Academic Journal of Procurement and Supply Chain Management, 2(2), 134-148.

McConnell, F. A. (2019). Role of buyer-supplier relationship and trust on organizational performance. Delhi Business Review, 13(2).

Mugenda, O. M., & Mugenda, A. G. (2008). Research Methods: Qualitative and Quantitative Approaches. Nairobi, Act Press.

National Association of Automotive Vehicles. (2019). National Association of Atomic Veterans. Astra Word Press Theme.

National Oil Corporation. (2022). https://nationaloil.co.ke/

Omanyi, D. A., Njeri, D. M., & Mungai, H. (2018). Effects of supplier trust on performance of cooperative supplier relationships. Journal of Operations Management, 22, 23-38. https://doi.org/10.1016/j.jom.2003.12.001 DOI: https://doi.org/10.1016/j.jom.2003.12.001

Ogot, F. (2017). Buyer-supplier relationships and organizational performance among large manufacturing firms in Nairobi, Kenya (MBA Thesis, University of Nairobi).

Quesada, J. W. (2021). SRM: leveraging the supply base for competitive advantage. Proceedings of the SMTA International Conference, Chicago, IL, 1 October 2016, supply works inc.

Sijaona, J. (2020). An integrative framework for supplier relationship management. Industrial Management & Data Systems, 110(4), 495-515. https://doi.org/10.1108/02635571011038990 DOI: https://doi.org/10.1108/02635571011038990

Thai, M. E. (2017). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.

Harland, V. C. (2021). Outsourcing: assessing the risks and benefits for organizations, sectors, and nations. International Journal of Operations & Production Management, 25(9), 831-850. https://doi.org/10.1108/01443570510613929 DOI: https://doi.org/10.1108/01443570510613929

Zakari, G. O. (2018). Talent Retention Strategy and Employees' Productivity in Private Sugar Companies in Kakamega County, Kenya. International Journal of Multidisciplinary and Current Research, 4(July-August, 2016).

Yamane, T. (1967). Statistics: An Introductory Analysis (2nd Edition). New York: Harper and Row.