The Adoption of Big Data Analytics by Supermarkets in Kisumu County

Abstract

The main aim of this study was to establish the extent of adoption of big data analytics (BDA) in enterprises in Kenya with emphasis on supermarkets in Kisumu County and to determine the factors affecting the adoption of BDA in supermarkets in Kenya. The need for the study arose in view of the fact that ‘Big data’ has become one of the most talked about trend within the business intelligence (BI), analytics and data management markets. Business executives understand the advantages accruing from employing predictive and customer analytics in their operations but this is slowed down by organizational and skills issues. Recent information system researches about this technology also indicate that there is lack of focus on the factors that impact its organizational adoption. The study had three objectives namely, to determine the extent to which supermarkets in Kisumu County have adopted BDA technology, to establish the challenges of adoption of this technology and to establish factors leading to the usage of this technology. The understanding of these factors and challenges will influence the adoption of BDA. Similarly, the understanding of the technology, organization and the current trends and how BDA can create competitive advantage from the increasingly large and diverse data sets will also determine the success of adoption of BDA as a business tool. This study was guided by multi-perspective Technology – Organization - Environment (TOE) framework and diffusion of innovation which was used as theoretical base to determine the factors affecting the adoption of BDA in supermarkets in Kisumu county. A cross- section study design and quantitative approaches was used for data collection. It was a case study of the 5 leading Supermarket chains and the 3 independent supermarkets in Kisumu county. Primary data was collected through a closed ended questionnaire administered to the senior level managers, middle level managers and lower level staff of the 5 leading Supermarket chains and the 3 independent supermarkets in Kisumu County. The Statistical package for the social sciences (SPSS) software was used to facilitate data organization and analysis and descriptive statistics to summarize nominal data. The regression technique was used to test the research model (TOE). The results of the study found out that there was high rate of computer usage in all the supermarkets and many supermarkets had not put in place the software for managing unstructured data. Though many respondents indicated high adoption of big data analytics, it was clear that the meaning of big data and big data analytics was not very clear judging from the response in terms of infrastructure and required skill. The study also found out that there were a number of challenges hindering the adoption of big analytics technology by supermarkets in Kenya.