THE INFLUENCE OF ELECTRONIC COMMERCE ADOPTION ON PERFORMANCE OF WOMEN OWNED MICRO AND SMALL ENTERPRISES IN NAIROBI CENTRAL BUSINESS DISTRICT

Lucyline Kinanu Mbogori, Dr. Anaya W. Senelwa

Abstract


The current study sought to examine the Influence of e-commerce adoption among women owned micro and small enterprises in Nairobi Central Business District. Specifically, the study sought to determine the influence of online marketing on performance of women owned micro and small enterprises in Nairobi Central Business District and to examine the influence of electronic procurement management on performance of women owned micro and small enterprises in Nairobi Central Business District. The study utilized a descriptive research design with the unit of analysis being women own MSE’s central business district in Nairobi city. The unit of observation was the managers/business owners of the firms. The sampling frame for the study consisted of 185 micro and small enterprise firms located and operating within central business district. The research relied on both primary and secondary data.  Primary data was sourced using a semi-structured questionnaire. The research relied on descriptive and inferential analysis for the quantitative data while qualitative data analyzed using content analysis. Data was analyzed and presented using descriptive statistical tools. In addition, advanced statistical technique was used using SPSS (statistical package for social sciences) model which was used in data analysis.  In Conclusion most of the MSEs have adopted to e-commerce even though they have not fully implemented all the business models. In this study, benefits and challenges that influence the level of ecommerce adoption were studied. Using the questionnaires each specific challenge or benefit respondents were asked to rate the degree of benefit or lack thereof that each specific benefit or challenge respectively brought to their MSEs due to the fact that they had incorporated ecommerce in their business entities. Items selected by majority showed that the MSEs owners derived certain benefits from the adoption of ecommerce in their businesses. The study findings also showed that: - extending the customer base; Reduced Transaction, marketing and operating costs and Improving company profile and improved sales brought great benefits to the MSEs. The study recommends that the women MSEs owners should adopt online marketing, e-procurement management, e-customer relationship management and e-recruitment and selection in order to improve on profitability, sales turnover and return investment. The study was limited to the use of the adoption model using cross-section study. Due to time and resource, limitation, it is recommended that future research be undertaken using extended diffusion models in the context of women owned MSEs to enable the actual performance of the firms to be determined as a function of the influence of e-commerce adoption.

Key Words: E-commerce adoption, Online marketing, Electronic procurement management, Women owned micro and small enterprises

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