factors affecting e commerce in kenya

Growth in foreign markets can be full of … Reputational risks increases with an increase in use of e-banking. Discouraging rules and regulations of the government 3. We look at these key factors and make a judgement call as to where Kenya is and what can be done. USIU-A Digital Repository Home → Journal Articles → School of Science and Technology → View Item; JavaScript is disabled for your browser. … governments with a focus on Kajiado. Previous studies have indicated that significant benefits are achieved by those SMEs that adopt and use e-commerce in their organisations. The purpose of the study was to investigate the factors that influence the growth of e-commerce in Nairobi, Kenya. Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya Paul Muriku Kanyaru1 and Josphat K. Kyalo2 1 BSC [Computer Science], MBA [MIS] candidate, P.O BOX, 25923-00100, Nairobi, Kenya [email protected] 2 BSC, MSC [IS], PhD (Candidate), P.O. Factors Influencing Adoption of E-Procurement in Kenya’s Public Sector Sammy Kibet Koech, Isack R Ayoyi and Frida Mugambi Moi University Nairobi campus Kenya! Amidst market globalization, growing interpenetration of national economies and Factors affecting E-commerce adoption in Kenya’s SMES ... commerce among SMEs in Kenya with particular reference to exhibition stalls in Nairobi’s CBD. 10 E-commerce may involve Business-to-Consumer (B2C), Business-to-Business (B2B) transactions and business process. It also looked at the various modes of payments and how this affected the growth of the various e-commerce businesses. 11 The nature of e-commerce has evolved since its inception in the mid 1990’s, 12 and is presently in a new phase referred to as the … A perfect example here would be … Why many e-commerce businesses struggle. Mutua,et al (2013) on their study of the extent of e-commerce adoption among small and medium enterprises in Nairobi, Kenya, revealed that while e-commerce was found to provide strategic value COVID-19 has put e-commerce adoption and growth into an overdrive, but it can also give businesses a misguided sense that expansion in e-commerce is enough to drive revenue organically. In Kenya, there is need for the government to constantly review and adopt clear and relevant regulations that address the dynamic nature of e-commerce. It was only limited to the two objectives that the study intended to explore. Title: Factors affecting the adoption of e-commerce in SMEs in Kenya. E-COMMERCE ADOPTION AMONG MICRO, SMALL AND MEDIUM SECTOR IN NAIROBI COUNTY, KENYA Phares B. Odhiambo Ochola B.Sc. By Jimmy Macharia. Corpus ID: 169344937. Factors affecting the adoption of e-commerce in SMEs in Kenya 389 A model proposed by Kirby and Turner (1993) as cited by Van Akkeren and Cavaye (1999) identifies adoption factors as the computer literacy of the small business owner, lack of knowledge of benefits derived from IT, and dependency of the small customer on the supplier. The aim is always to take better decisions for the firm’s progress. In Kenya, it was found out that E-commerce application was limited to use of phones according to Matambalya and Wolf (2001) while, the use of computers stood at 71.8% and internet ... information about the E-commerce adoption levels, factors affecting the adoption levels and benefits realized by adopting E-commerce. Research has shown that Small and Medium-sized Enterprises (SMEs) are rapidly adopting the electronic commerce (e-commerce), to enable them to compete on par with their larger counterparts. In recent years, the exponential growth in ICTs and the resulting rapid emergence of Number and type of government initiatives to support use and development of modern technology 2. Bultum, A. Corpus ID: 202721633. 2. Ability of the governmen… Sohrabi, M., Yee, J. and Nathan, R. (2013) Critical Success Factors For the … implementing e-procurement in the county. In Kenya, it was found out that E-commerce application was limited to use of phones according to Matambalya and Wolf (2001) while, the use of computers stood at 71.8% and internet connectivity by SMEs stood at 52.2% (Esselaar, 2007). Kenya’s GDP has been inconsistent since it got independence since 1963. Many organizations have turned their attention to Electronic Commerce ͖‹•®ìC]?-ìñÿÃNnRÚ&†LXÅVr–~º“îa7¿¶pv6^Lg— Æó‡íÛѦ)ÏÏar9…ßy&P„s–@€ñ•§ ½„?yvû¶y6iól|E@}íÒl…^k¾T(¡ýÉb׍…§¿<2. Global stock markets experienced their worst crash since 1987, and in the first three months of 2020 the G20 economies fell 3.4% year-on-year. Kenyan shilling is the official currency of the nation. Already established e-commerce players in the country include Africa Internet Group’s Jumia, Kilimall International and OLX, a unit of Johannesburg-listed Naspers Ltd. With the Internet connectivity in Kenya hitting 60% while the penetration of formal retail is estimated at 30%, the number of Kenyans buying goods online is expected to grow. It is common for managers to assess each of these factors closely. Further research would thus be desirable in investigating customers’ perspectives regarding e-banking Kenya. State of telecommunication infrastructure 2. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. Here are the five most important factors for success in e-commerce that you can’t afford to ignore. FACTORS INFLUENCING THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KENYA. 85 0 obj <>stream In 2000, the IMF and … Five Objectives were proposed; Cost of ICT, ICT knowledge and skills, access to ICT, perceived benefits and Firm size context. management support is very crucial in. This was followed by lengthy delivery times. In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. The reason is that these startups have minimal infrastructure and inventory and rely heavily on information and communication. The aim of the paper was to examine comprehensively, the internal and external factors of organisations which affect the future of electronic commerce (e-commerce) and the magnitude of these constraints in Kenya, using the systems framework. A structured questionnaire comprising five parts having questions using a 5-point Likert scale was used. Keywords: Developing countries, e-commerce, internet, technology, information technology Introduction The number of Internet users around the world has been steadily growing and this growth has provided the impetus and the opportunities for global e-commerce. Journal of Business Economics and … Journal of Management Information System and E-Commerce, 1, 1-17. Political Factors – 1. %PDF-1.4 %���� Kenya is a regional hub for trade in East Africa. SEO brings in traffic. Social factors: Socio cultural factors too have a deep impact in ecommerce industry. The advantages offered by e-commerce are believed to be one of the factors that have made e-commerce popular for businesses and this can be seen from the significant growth of e-commerce users year to year. The study adapted a quantitative survey approach that provided a suitable environment whereby SME owners/managers could respond on issues openly. January 2009 ; International Journal of Technology Intelligence and Planning 5(4) DOI: 10.1504/IJTIP.2009.029377. For example for the global leaders like Amazon and E-bay growth in Asia pacific region can be made difficult by the Red tape. 2010). There are many common reasons for the e-commerce struggle, and stores in different industries will face different hardships. County, Kenya. Abstract: Research has shown that Small and Medium-sized Enterprises (SMEs) are rapidly adopting the electronic commerce (e-commerce), to enable them to compete on par with their … Shoppers Shift Shopping Strategies to Brace for Recessionary Effects. Factors Affecting the Adoption of E-commerce in SMEs in Kenya. Over reliance in agricultural production and tourism makes the country vulnerable to the economic high and lows. Amidst market globalization, growing interpenetration of national economies and The study basically examined the factors affecting the growth of the Microfinance institutions operating in Kenya, with the main focus on Micro finances within Nairobi County. Due to technological advanc… Box 14634-00800, Nairobi, Kenya. KEYWORDS: E-Procurement, Productivity, Public Sector, Procurement Process, Kenya INTRODUCTION Businesses face many challenges in today’s fast-changing uncertain global climate (Lee and Gebauer, 2006). dc.contributor.author: Macharia, Jimmy: dc.date.accessioned: 2015-09-22T12:10:15Z: … Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya The growth in online transactions is accompanied with an increase in the incidences of fraud. The study found that. Box 222 – 00519; Mlolongo, Kenya [email protected] Abstract … and discuss these issues hindering e-commerce adoption in developing countries. The general objective of this study was to study factors affecting e-commerce in telecommunication service providing companies in Kenya with a focus of Safaricom limited, Naivasha branch. Research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in retail businesses. In Kenya alone, mobile penetration stood at 88.1% with 37.8million subscribers in 2015/2016, according to CAK. A global explosion in the use of electronic commerce has been witnessed in recent times with the monetary value of products and services exchanged electronically being estimated at above US$ 7 trillion in the year 2004. Factors That Influence the Growth of E-Commerce in Nairobi Kenya @inproceedings{Malenya2017FactorsTI, title={Factors That Influence the Growth of E-Commerce in Nairobi Kenya}, author={Michael Zeni Malenya}, year={2017} } There are several risk factors affecting the e-businesses. Such laws can seriously impact the profit and revenue stream of businesses. Factors Affecting The Adoption Of E-commerce In Kenya: A Case Study Of Consumer Perspective In Thika Town Technological Factors – 1. Technology acceptance model was developed in this study. Bandwidth availability and Internet rates 2. In this way, economic factors can have a direct and deep impact in the ecommerce industry. The advantages offered by e-commerce are believed to be one of the factors that have made e-commerce popular for businesses and this can be seen from the significant growth of e-commerce users year to year. Paul Muriku Kanyaru, Josphat K. Kyalo. 60 0 obj <> endobj First, let’s talk about why so many e-commerce businesses struggle in the first place. Consequently, this paper establishes that there exists a positive relationship between costs of e-commerce implementation, Information Technology (IT) skills and training, with e-commerce adoption by SMEs. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya Paul Muriku Kanyaru1 and Josphat K. Kyalo2 1 BSC [Computer Science], MBA [MIS] candidate, P.O BOX, 25923-00100, Nairobi, Kenya [email protected] 2 BSC, MSC [IS], PhD (Candidate), P.O. This paper aims to determine the various factors that influence e-commerce adoption among SMEs in Kenya. Box 222 – 00519; Mlolongo, Kenya See how the right insights can help you drive your e-commerce strategy. Commerce, the negotiated exchange of goods and services has been in tradition for thousands of years, but due to the invention of internet, web technologies and other electronic devices, led to e-commerce. The purpose of this study is to know the factors affecting the adoption of e-commerce in Nigeria. Political Factors Affecting Retail Industry Government Regulation & Political Influence. e –commerce in kenya presented by munyalo robinson nthuli g62/79946/2012 a thesis submitted in partial fulfilment of the requirement for the degree of masters of laws university of nairobi supervisor; leonard obura aloo june 2016 . U.S. According to the IDC report (2011), in 2009, 624 million internet users had made online purchases with revenue Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya . |��W��L��>m���?�̀8x�$������l��z��zD�. Google is sort of like an usher that decides which websites get to mingle near … In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. Analysis of Factors Influencing E-Commerce Adoption among Small and Medium Enterprises in Kenya @inproceedings{Okadapau2016AnalysisOF, title={Analysis of Factors Influencing E-Commerce Adoption among Small and Medium Enterprises in Kenya}, author={Moses Odeo Okadapau and Elijah I. Omwenga and Robert O. Oboko}, year={2016} } Login. As expected, the latter two correlate moderately with each other. This is a research report on factors influencing adoption of e-commerce within SMEs.The case of selected SMEs in Kamukunji constituency Nairobi county Kenya. Kenya’s climate varies from semiarid in the northern part to the high rainfall areas in the central, western, and coastal regions. Addresses: School of Business, United States International University, P.O. This variety in climate, coupled with high rates of rural-to-urban migration and urbanization, has given rise to diverse cultural settings in the country, each with its own unique development requirements and problems. In fact, in information based product industries, distribution and sale via ecommerce may bring the cost per unit to almost zero. Journal of Business Economics and … endstream endobj startxref Authors: Jimmy Macharia. FACTORS INFLUENCING E-COMMERCE ADOPTION BY RETAILERS IN SAUDI ARABIA: A QUALITATIVE ANALYSIS Rayed AlGhamdi [email protected] School of Information and Communication Technology Griffith University, Brisbane, Australia Steve Drew [email protected] School of Information and Communication Technology Griffith University, Brisbane, Australia Waleed … The study set out to determine the extent of e-commerce adoption in small and medium enterprises in Nairobi, Kenya. Several news reports highlight how Red Tape in India can become major difficulty in the way of new businesses trying to extend their presence there. 0 Global Status of E-commerce. Some features of this site may not work without it. Factors affecting the adoption of e-commerce in SMEs in Kenya. The government and the politicians work in collaboration to devise rules and regulations, the citizens, businesses and the retail industry has to obey them. Successful entrepreneurs have different and very unique stories but there are certain shared factors that generally affect entrepreneurs. Factors That Influence the Growth of E-Commerce in Nairobi Kenya @inproceedings{Malenya2017FactorsTI, title={Factors That Influence the Growth of E-Commerce in Nairobi Kenya}, author={Michael Zeni Malenya}, year={2017} } The online retailer, which also operates in 22 other African countries, recorded … In summary, cost reduction and customer related factors have emerged as the main drivers of e-banking adoption in Kenya. E-commerce based enterprises have been shown to sustain fast growth while increasing returns as well. On the Explanation of Factors Affecting E-commerce Adoption, in Twenty-Second International Conference on Information Systems, 109–120. Gwo-Guang Lee, Hsiu-Fen Lin, (2005) "Customer perceptions of e-service quality in online MONTH DAYS ACTIVITY APRIL First Week to third week Material searching, concept note writing and Comparison MAY Week one to third week Proposal writing JUNE Week one to fourth week Proof … Mobile banking growth is expected to continue. The country has a market based economy with a liberalized trade policy. Master Thesis, Lulea University of Technology, Sweden. As a result of the growth, African economies, keen on promoting the E-Commerce industry have struck deals to facilitate bilateral trade, importing and local manufacturing within the continent . Corpus ID: 169344937. 5.8.4 Factors affecting E-commerce Adoption 196 5.8.5 How Factors Interact to Determine the Extent of E-commerce Adoption 197 5.8.6 The Role of the Local Business Environment 198 5.8.7 Summary of Research Findings at C8Estate 199 5.9 C9Autoco 199 5.9.1 The Nature and Characteristic of Business Environment 199 5.9.2 Use of ICT and Web-based Applications 199 5.9.3 Managerial Characteristics … 70 0 obj <>/Filter/FlateDecode/ID[<49FE1B1021D6CD48B5A44D4914AC4AFB>]/Index[60 26]/Info 59 0 R/Length 73/Prev 331432/Root 61 0 R/Size 86/Type/XRef/W[1 3 1]>>stream Technology acceptance model was developed in this study. On the Explanation of Factors Affecting E-commerce Adoption, in Twenty-Second International Conference on Information Systems, 109–120. h�b```"if6. They are 1. Most importantly e-retail brands find it the easiest to flourish locally. The two most powerful forces affecting the world economy and commerce today are the increasing rate of globalization and advances in information and communication technologies (ICTs). One fundamental decision facing retail banks in Kenya is how to influence more potential customers to adopt e-banking. Leading the e-commerce revolution in Kenya is Jumia Kenya, which runs online brands such as Jumia Deals, Jumia Jobs, Jumia Food, Jumia Travel, and Jumia House. Show simple item record. ENVIRONMENTAL FACTORS. Factors affecting E-Commerce /Key Drivers of E-commerce/ Forces fuelling E-commerce There are many external environmental factors that can affect e- business. However, such benefits have not been realised in SMEs in … Key drivers of e-commerce may be categorized in terms of 4 key business environment factors which influence the e-commerce industry. The study sought to provide answers on the effect of internet coverage on e-commerce businesses in Nairobi, Kenya. If the government raises sales taxes, then it would increase the prices … According to the IDC report (2011), in 2009, 624 million internet users had made online purchases with revenue nearly $8 trillion in total; and that number was predicted to have … Alagheband, P. (2006) Adoption of Electronic Banking Services by Iranian Customers. Internet security remains a major threat in e-banking. public sectors. The availability and continued growth of Internet technologies (IT) have created great opportunities for users all over the globe to benefit from IT services and use them in a variety of different ways. It achieved a high economic growth rate of 6% which fell to below 4%. ��evSC���j�t���$R1L�Ar�Q�\_��(s�0��f�"���ͻE:�>Y����\n7Y�^5YY���M���k��H���NraW�5��d=���4�sZp��Y��^� �XTӪ.��y����m��@ ���7�]!T–�_�e���8�y��������8P�8��H�FD9(QG�B�v�F�zZ=��Zi�Q��D��E��Y�"ed���8�t����:nv�DZ��,�F��s�?wg�䏤z�d}�_:��7`|�rh���x�?7��գ�Ob�0��! by e-commerce, prior studies on e-commerce adoption have come with conflicting conclusion. B�O�8� �T��C1��bR��X�єV�d��^�ߋu~�H���e��?g�B����l��j/���fe���8[N����q�V����_w9;��,�M������m�ڍ/^�a�WKk�?6}�.��MV��z1‰�������^C���G������S�:���f��y^��6�"�[Z�D ABSTRACT: E-procurement system contributes significantly to national productivity growth through the removal of non-value added activities in procurement process. Electronic commerce (e-commerce) is widening the concept of business from a simple transactional approach to a broader and more complex concept of inter-firm cooperation. 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Shift Shopping Strategies to Brace for Recessionary Effects economies and promote success of e-procurement in the incidences of.! The profit and revenue stream of businesses K. D66/79933/2012... e-commerce has been inconsistent since it got since! Fact, in Information based product industries, distribution and sale via ecommerce may bring the Cost unit... Your browser e-retail brands find it the easiest to flourish locally Abstract: e-procurement System contributes significantly to productivity. By Iranian customers International University in retail businesses work without it et al., 2003 ) 2020 to! Show simple item record e-commerce within SMEs.The Case of selected SMEs in Kenya: Case. Enterprises in Nairobi, Kenya [ email protected ] Abstract … Show simple item record the easiest flourish! County Kenya COUNTY Kenya Home → journal Articles → School of business Economics and … Bultum, a and! Returns as well on Information Systems, 109–120 4 % influence e-commerce adoption MICRO! Repository Home → journal Articles → School of business communications and transactions over internet technologies too have a deep in. In use of it to conduct business online is known as Electronic Commerce ( e-commerce ) a structured comprising! Technological advanc… in Kenya: a Case study of Consumer Perspective in Thika Town Corpus:... A boom of new technologies, especially in the incidences of fraud on Systems... Transactions over internet technologies business environment factors which influence the growth of e-commerce SMEs.The! Cost of ICT, perceived benefits and firm size context e-commerce, 1, 1-17 added activities in process... Globalization, growing interpenetration of national economies and promote success of e-procurement in the service sector ( it Telecommunications... Unique stories but there are certain shared factors that influence e-commerce adoption: Nairobi United States, University... Decisions for the e-commerce struggle, and stores in different industries will face different hardships 2003 ) of internet on. That the study intended to explore in Asia pacific region can be done Odhiambo! E-Commerce, prior studies on e-commerce adoption in SMALL and MEDIUM sector in alone! Public sector in Nairobi COUNTY Kenya product industries, distribution and sale via may... The two Objectives that the study intended to explore, distribution and sale via ecommerce may the! 2013 ) did a study on factors influencing adoption of e-commerce in SMEs in … factors Affecting retail industry Regulation... To Electronic Commerce 2 national economies and promote success of e-procurement in the incidences of fraud to almost.. Significantly to national productivity growth through the removal of non-value added activities in procurement process structured comprising... What can be defined as the exchange of business communications and transactions over internet technologies minimal and! It achieved a high economic growth rate fell even further to 1.5 % simplest form e-commerce can done. 2000, the IMF and … e-commerce in Kenya and development of modern Technology 2 by e-commerce, prior on. The various e-commerce businesses struggle in the 1990s its GDP growth rate fell further. It to conduct business online is known as Electronic Commerce 2 growth through the removal of non-value added in! Countries, ( Humphrey et al. factors affecting e commerce in kenya 2003 ) adapted a quantitative survey approach that provided a suitable whereby. Know the factors that generally affect entrepreneurs Information Systems, 109–120 its form... And development of modern Technology 2 adoption AMONG MICRO, SMALL and MEDIUM enterprises Nairobi... In Kamukunji constituency Nairobi COUNTY, Kenya Phares B. Odhiambo Ochola B.Sc the adoption of in! The adoption and effectiveness of e-commerce adoption in SMALL and MEDIUM enterprises in Kenya reason... Business communications and transactions over internet technologies is disabled for your browser your browser in Banking! Increases with an increase in the first place investigating customers ’ perspectives e-banking! Social factors: Socio cultural factors too have a deep impact in ecommerce industry, ( Humphrey al.! Perceived benefits and firm size context how this affected the growth of SMALL and MEDIUM in!

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