Impact Of Web Based Interactions In Organization’ S Ecosystem In Kenya’S Financial Technology Sector Small And Medium Enterprises

Abstract

Web 2.0 is one of the rapidly growing web applications. Financial technology enterprises are leveraging these platforms to access customers using social technologies and gain competitive advantage. Due to the recent growth in use and adoption of Web 2.0 in organizations and the need to gain increased understanding of web based interactions in ecosystems, this research sought to investigate the impact of web based interactions in organizations’ ecosystem in small and medium financial technology enterprises in Nairobi. The study was guided by the research objectives, these are: To determine the frequently used web based interaction technologies, to establish the impact of web based interactions in organization’s ecosystems, systems and strategic directions and lastly to assess whether the use of web based interactions in small and medium enterprises result in increased value in organizations. The study used descriptive cross sectional research design and structured questionnaires as primary data collection tools that were administered to the study population. Descriptive statistics and regression analysis was used to analyze the study findings. The findings of the study indicated that use of web based interaction media in small and medium financial technology firms in Kenya lead to positive impact in organizations, increased business value such as increased market reach, better customer management, increased efficiency, increased information flow and better networked organizations. The research also indicated a positive correlation between extent of use and supporting organization policies, structure and culture and also a positive correlation between business value and extent of use indicating increased business value as extent of use increases. There are emerging factors that come up as a result of use of social technologies such as need for quality content and cyber security risks. Challenges that come up as a result of using interaction technologies must be addressed by small and medium FinTech organizations in order for continued benefits and value to prevail in the organization and the ecosystem. The study recommends organizational changes that support use of Web 2.0 in the organization should be implemented and supported by management as well as the alignment of the digital strategy to the business strategy to ensure that the organization is able to benefit from long term competitive advantage. Organizations should also invest in other social interaction platforms in order to gain benefits of the emerging Web 2.0 that is current and more innovative.