E-commerce Adoption and Performance of Import Oriented Small and Medium Enterprises in Nairobi City County

Abstract

This study examined the relationship between e-commerce adoption and performance of import oriented small and medium enterprises in Nairobi City County.“The study was based on unified theory of acceptance and use of technology (UTAUT) model and transactions cost theory. This research employed descriptive cross-sectional research design. The kinds of businesses meeting the definition of import oriented SMEs were 408. The research employed stratified random sampling in which any import oriented business had equal chance of being selected in the sample. The sample size selected was 122 import oriented SMEs. The research collected relevant data based on structured questionnaires. The questionnaires were self-administered and collected back immediately after being filled. For SMEs operators that were absent on the day of the study, the researcher dropped the questionnaires in respondent’s offices and made follow-up by e-mail and telephone. Data analysis, involved both descriptive and inferential analysis. The descriptive analysis included mean, standard deviation and percentages. The inferential analysis involved Pearson correlation and multivariate regression. The study established a positive and statistically significant influence on performance of import oriented SMEs. The study established that e-marketing has a significant positive influence on performance of import oriented SMEs in Nairobi City County. The study also established that the influence of e-payment on performance of import oriented SMEs is positive but not statistically significant. The research also revealed that e-bookkeeping had a positive and statistically significant effect on performance. Finally, the study revealed that e-customer relationship management had a significant effect on performance of import oriented SMEs. The study recommends that ownership and management of import oriented SMEs should continue adopting and using e-ordering and custom clearance of products. They also suggested to management of import oriented SMEs to enhance their presence online through e-marketing. The research also recommends that the firms should continue adopting latest e-payment modes besides their manual payment methods. The study further suggests to management of import oriented SMEs to adopt e-book keeping fully. Finally, research recommends that management of import oriented SMEs to adopt e-CRM rigorously.””