Electronic Marketing Practices, Corporate Culture, Competitive Environment and Performance of Telecommunications Companies in Kenya

Abstract

The broad objective of the study was to determine the influence of e-marketing practices, corporate culture and competitive environment on the performance of telecommunications companies in Kenya. Four specific objectives were used to determine the relationships among e-marketing practices, corporate culture, competitive environment and organizational performance. Four hypotheses which were derived from the objectives and the literature were tested using simple and multiple regression analyses. A descriptive cross-sectional survey design was used and the population of the study was composed of 408 telecommunications companies licenced by the Communications Authority of Kenya (CAK) as at June 2015. Primary data were collected from three managers in every organization using a semi-structured questionnaire. The data were analyzed using descriptive statistics, factor analysis and regression analysis. The study results revealed a positive and significant relationship (F=50.405, p=0.00) between e-marketing practices and organizational performance. The moderation effects of corporate culture and competitive environment on the relationship between e-marketing practices and organizational performance were also statistically significant (p<0.05). Similarly, the test results for the joint effects were statistically significant (p=0.016). The results supported findings of previous studies regarding the positive influence of e-marketing practices on performance of organizations. The findings also revealed that both corporate culture and competitive environment have significant influence on the relationship between e-marketing practices and organizational performance. The study contributes to theory of e-marketing and organization performance by adding two variables, corporate culture and competitive environment. Specifically, the study adds to theory on the joint effects of e-marketing practices, corporate culture, competitive environment and performance. The study findings also make contributions to policy and practice. The study had some limitations. The use of cross-sectional research design had limitations as it could not measure changes in e-marketing practices and performance over time. Additionally, use of structured survey instrument could not reveal the extent of investment in and engagement of organizational members for the adoption of e-marketing practices. It was recommended that future studies should use both structured and unstructured survey instruments in data collection. Additionally, longitudinal research design could be applied in assessing changes in e-marketing practices and organizational performance over time.