factors affecting e commerce in 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). Factors affecting E-commerce adoption in Kenya’s SMES ... commerce among SMEs in Kenya with particular reference to exhibition stalls in Nairobi’s CBD. First, let’s talk about why so many e-commerce businesses struggle in the first place. Authors: Jimmy Macharia. The main objective of the study was to fill this gap. In Kenya alone, mobile penetration stood at 88.1% with 37.8million subscribers in 2015/2016, according to CAK. 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 … Why many e-commerce businesses struggle. by e-commerce, prior studies on e-commerce adoption have come with conflicting conclusion. Factors Affecting the Adoption of E-commerce in SMEs in Kenya. The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). They are 1. Growth in foreign markets can be full of … According to the IDC report (2011), in 2009, 624 million internet users had made online purchases with revenue nearly $8 trillion in total; and that number was predicted to have … e –commerce in kenya presented by munyalo robinson nthuli g62/79946/2012 a thesis submitted in partial fulfilment of the requirement for the degree of masters of laws university of nairobi supervisor; leonard obura aloo june 2016 . The advantages offered by e-commerce are believed to be one of the factors that have made e-commerce popular for businesses and this can be seen from the significant growth of e-commerce users year to year. KENYA KABUBA PURITY K. D66/79933/2012 ... E-commerce has experienced unprecedented growth following the invention of the internet. Research has shown that Small and Medium-sized Enterprises (SMEs) are rapidly adopting the electronic commerce (e-commerce), to enable them to compete on par with their larger counterparts. It is common for managers to assess each of these factors closely. implementation of e-procurement in county. On the Explanation of Factors Affecting E-commerce Adoption, in Twenty-Second International Conference on Information Systems, 109–120. 11 The nature of e-commerce has evolved since its inception in the mid 1990’s, 12 and is presently in a new phase referred to as the … However, such benefits have not been realised in SMEs in … E-commerce in Kenya. 2. A global explosion in the use of electronic commerce has been witnessed in recent times with the monetary value of products and services exchanged electronically being estimated at above US$ 7 trillion in the year 2004. A structured questionnaire comprising five parts having questions using a 5-point Likert scale was used. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. It was only limited to the two objectives that the study intended to explore. 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. Factors affecting E-Commerce /Key Drivers of E-commerce/ Forces fuelling E-commerce There are many external environmental factors that can affect e- business. Key drivers of e-commerce may be categorized in terms of 4 key business environment factors which influence the e-commerce industry. SEO brings in traffic. 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 . We are witnessing a boom of new technologies, especially in the service sector (IT, Telecommunications, Internet, etc.). Amidst market globalization, growing interpenetration of national economies and Shoppers Shift Shopping Strategies to Brace for Recessionary Effects. 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! In 2000, the IMF and … 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. 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). Paul Muriku Kanyaru, Josphat K. Kyalo. … h�bbd```b``z"���;�d�"y׀�y�$c��1DZ� ��+��&�� �Q����8�3@� - Electronic commerce (e-commerce) is widening the concept of business from a simple transactional approach to a broader and more complex concept of inter-firm cooperation. Political Factors – 1. ��evSC���j�t���$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��! 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. management support is very crucial in. promote success of e-procurement in the public sector in Kenya. Box 14634-00800, Nairobi, Kenya. 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. BibTex; Full citation Abstract. Previous studies have indicated that significant benefits are achieved by those SMEs that adopt and use e-commerce in their organisations. The adoption of mobile and smart devices has largely contributed to the growth of ecommerce due to the easy availability and accessibility of real-time information on … Login. The study sought to provide answers on the effect of internet coverage on e-commerce businesses in Nairobi, Kenya. 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. 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. Kenya’s climate varies from semiarid in the northern part to the high rainfall areas in the central, western, and coastal regions. 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 … See how the right insights can help you drive your e-commerce strategy. 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. Most importantly e-retail brands find it the easiest to flourish locally. 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. There are several risk factors affecting the e-businesses. Cite . Journal of Management Information System and E-Commerce, 1, 1-17. hެ��o������/I�DBHMY;�Aky��>�.li:5/��s�ة�v�d�����5��s� Z��� � ��!�� governments with a focus on Kajiado. 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. Box 222 – 00519; Mlolongo, Kenya 10 E-commerce may involve Business-to-Consumer (B2C), Business-to-Business (B2B) transactions and business process. 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. 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. Amidst market globalization, growing interpenetration of national economies and CPG, FMCG & Retail 09-25-2020. 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. Ability of the governmen… 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. The study set out to determine the extent of e-commerce adoption in small and medium enterprises in Nairobi, Kenya. Corpus ID: 169344937. In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. dc.contributor.author: Macharia, Jimmy: dc.date.accessioned: 2015-09-22T12:10:15Z: … 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. 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 … January 2009 ; International Journal of Technology Intelligence and Planning 5(4) DOI: 10.1504/IJTIP.2009.029377. The regression analysis suggests that telecommunications infrastructure barriers hold the key to unlocking the gordian knot of e-commerce in Kenya, as a decrease in this area would have multiplier effects on the other barriers. 0 Technology acceptance model was developed in this study. In the 2015 South African E-commerce Awards survey of over 90 000 South African online shoppers, high delivery costs ranked as the second most likely factor to cause shoppers to abandon their online purchases. Previous studies have indicated that significant benefits are achieved by those SMEs that adopt and use e-commerce in their organisations. 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. State of telecommunication infrastructure 2. and discuss these issues hindering e-commerce adoption in developing countries. 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). implementing e-procurement in the county. Kenya’s GDP has been inconsistent since it got independence since 1963. Factors affecting the adoption of e-commerce in SMEs in Kenya. In the 1990s its GDP growth rate fell even further to 1.5%. Factors affecting E-commerce Adoption: Nairobi United States, International University. Five Objectives were proposed; Cost of ICT, ICT knowledge and skills, access to ICT, perceived benefits and Firm size context. Such laws can seriously impact the profit and revenue stream of businesses. For example for the global leaders like Amazon and E-bay growth in Asia pacific region can be made difficult by the Red tape. It also looked at the various modes of payments and how this affected the growth of the various e-commerce businesses. Title: Factors affecting the adoption of e-commerce in SMEs in Kenya. E-commerce has been predicted to be a new driver of economic growth for developing countries, (Humphrey et al., 2003). Over reliance in agricultural production and tourism makes the country vulnerable to the economic high and lows. Corpus ID: 202721633. 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} } Here are the five most important factors for success in e-commerce that you can’t afford to ignore. Many organizations have turned their attention to Electronic Commerce Journal of Business Economics and … ENVIRONMENTAL FACTORS. Bultum, A. Technology acceptance model was developed in this study. Internet security remains a major threat in e-banking. 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 The purpose of this study is to know the factors affecting the adoption of e-commerce in Nigeria. 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. On the Explanation of Factors Affecting E-commerce Adoption, in Twenty-Second International Conference on Information Systems, 109–120. According to the IDC report (2011), in 2009, 624 million internet users had made online purchases with revenue 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. This was followed by lengthy delivery times. Bandwidth availability and Internet rates 2. The purpose of the study was to investigate the factors that influence the growth of e-commerce in Nairobi, Kenya. 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. 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. Alagheband, P. (2006) Adoption of Electronic Banking Services by Iranian Customers. Some features of this site may not work without it. U.S. 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 … 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} } |��W��L��>m���?�̀8x�$������l��z��zD�. ABSTRACT: E-procurement system contributes significantly to national productivity growth through the removal of non-value added activities in procurement process. A perfect example here would be … Mobile banking growth is expected to continue. Factors Affecting the Adoption of E-commerce in SMEs in Kenya . Journal of Business Economics and … Box 222 – 00519; Mlolongo, Kenya [email protected] Abstract … 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. Sohrabi, M., Yee, J. and Nathan, R. (2013) Critical Success Factors For the … Show simple item record. Master Thesis, Lulea University of Technology, Sweden. %%EOF 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 Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya . E-COMMERCE ADOPTION AMONG MICRO, SMALL AND MEDIUM SECTOR IN NAIROBI COUNTY, KENYA Phares B. Odhiambo Ochola B.Sc. %PDF-1.4 %���� Factors Affecting The Adoption Of E-commerce In Kenya: A Case Study Of Consumer Perspective In Thika Town The online retailer, which also operates in 22 other African countries, recorded … One fundamental decision facing retail banks in Kenya is how to influence more potential customers to adopt e-banking. By Jimmy Macharia. 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. Global Status of E-commerce. Kenyan shilling is the official currency of the nation. Corpus ID: 169344937. !�13�0p``P``(oXe e�����a���׍�p���[��292L������g�d��2�â�ܭ���A��Y������ "8�!H����@�`y�9��,�� ���9�Gi�{��6�Y>��P(1�|��`�1�.F�&��&.�%:��U���d� +oD5�@� �i> endobj 62 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]>>/Rotate 0/Thumb 34 0 R/Type/Page>> endobj 63 0 obj <>stream Social factors: Socio cultural factors too have a deep impact in ecommerce industry. (2014) Factors Affecting Adoption of Electronic Banking System in Ethiopian Banking Industry. Reputational risks increases with an increase in use of e-banking. This paper aims to determine the various factors that influence e-commerce adoption among SMEs in Kenya. In recent years, the exponential growth in ICTs and the resulting rapid emergence of It achieved a high economic growth rate of 6% which fell to below 4%. 10 E-commerce may involve Business-to-Consumer (B2C), Business-to-Business (B2B) transactions and business process. E-commerce based enterprises have been shown to sustain fast growth while increasing returns as well. 85 0 obj <>stream The study adapted a quantitative survey approach that provided a suitable environment whereby SME owners/managers could respond on issues openly. USIU-A Digital Repository Home → Journal Articles → School of Science and Technology → View Item; JavaScript is disabled for your browser. Research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in retail businesses. Further research would thus be desirable in investigating customers’ perspectives regarding e-banking Kenya. In this way, economic factors can have a direct and deep impact in the ecommerce industry. Technological Factors – 1. Addresses: School of Business, United States International University, P.O. Successful entrepreneurs have different and very unique stories but there are certain shared factors that generally affect entrepreneurs. The reason is that these startups have minimal infrastructure and inventory and rely heavily on information and communication. As expected, the latter two correlate moderately with each other. In fact, in information based product industries, distribution and sale via ecommerce may bring the cost per unit to almost zero. The aim is always to take better decisions for the firm’s progress. Abstract. There are many common reasons for the e-commerce struggle, and stores in different industries will face different hardships. 60 0 obj <> endobj 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 … Show simple item record. h�b```"if6. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. 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. County, Kenya. The growth in online transactions is accompanied with an increase in the incidences of fraud. Discouraging rules and regulations of the government 3. 2010). In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. Kenya is a regional hub for trade in East Africa. 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. In summary, cost reduction and customer related factors have emerged as the main drivers of e-banking adoption in Kenya. 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} } Odago and Mwajuma (2013) did a study on factors affecting effective. The study found that. Access to new technological developments 3. The country has a market based economy with a liberalized trade policy. If the government raises sales taxes, then it would increase the prices … 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. FACTORS INFLUENCING THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KENYA. We look at these key factors and make a judgement call as to where Kenya is and what can be done. endstream endobj startxref ͖‹•®ìC]?-ìñÿÃNnRÚ&†LXÅVr–~º“îa7¿¶pv6^Lg— Æó‡íÛѦ)ÏÏar9…ßy&P„s–@€ñ•§ ½„?yvû¶y6iól|E@}íÒl…^k¾T(¡ýÉb׍…§¿<2. (Nairobi), M.Sc. 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 Due to technological advanc… The coronavirus recession is an economic recession happening across the world economy in 2020 due to the COVID-19 pandemic. public sectors. ANALYSIS AND FINDINGS 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. K. D66/79933/2012... e-commerce has experienced unprecedented growth following the invention of study. 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