Abstract
Public procurement plays an important role in promoting inclusive economic development by expanding access to government contracts for preference groups, comprising enterprises owned by women, youth and persons with disabilities (PWDs), through the Access to Government Procurement Opportunities (AGPO) programme. Despite procurement reforms and affirmative-action measures in Kenya, the performance of preference groups remains constrained by limited adoption of electronic procurement systems and insufficient supplier capacity. This study examined the effect of e-Procurement adoption and capacity building and supplier training on the performance of preference groups in Machakos County, Kenya. Specifically, it assessed the effects of e-Procurement adoption and capacity building and supplier training on enterprise performance, measured through contract award rate, on-time contract delivery and annual business revenue growth attributable to county tenders. The study was guided by the Technology–Organization–Environment (TOE) Framework and Resource-Based View (RBV) Theory. A descriptive and explanatory survey research design was adopted. The target population comprised 768 registered preference-group enterprises in Machakos County, from which a sample of 263 executive members was selected using proportionate stratified random sampling. A total of 218 completed questionnaires were returned, representing an 82.9% response rate. The respondents included chairpersons, secretaries, treasurers and procurement representatives of the selected enterprises. Primary data were collected using structured questionnaires containing closed-ended and open-ended items. Quantitative data were analyzed using the Statistical Package for the Social Sciences (SPSS), Version 28, through descriptive statistics, Pearson correlation analysis, diagnostic tests, analysis of variance and multiple linear regression, while qualitative data were analyzed thematically. The findings indicate that e-Procurement adoption and capacity building and supplier training are positively associated with the performance of preference groups. Capacity building and supplier training recorded the strongest positive and statistically significant effect (β = 0.321, p < 0.001), followed by e-Procurement adoption (β = 0.288, p < 0.001). The study recommends strengthening accessible digital procurement systems and expanding continuous supplier training to enhance the participation, contract delivery and business growth of preference groups in public procurement.
Keywords: e-Procurement adoption, capacity building, supplier training, preference groups, enterprise performance, public procurement, AGPO.