factors affecting e commerce in kenya

Ability of the governmen… January 2009 ; International Journal of Technology Intelligence and Planning 5(4) DOI: 10.1504/IJTIP.2009.029377. 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} } In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. The country has a market based economy with a liberalized trade policy. E-commerce based enterprises have been shown to sustain fast growth while increasing returns as well. Such laws can seriously impact the profit and revenue stream of businesses. 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. According to the IDC report (2011), in 2009, 624 million internet users had made online purchases with revenue Some features of this site may not work without it. 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 coronavirus recession is an economic recession happening across the world economy in 2020 due to the COVID-19 pandemic. Abstract. Previous studies have indicated that significant benefits are achieved by those SMEs that adopt and use e-commerce in their organisations. Amidst market globalization, growing interpenetration of national economies and Here are the five most important factors for success in e-commerce that you can’t afford to ignore. County, Kenya. 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. Mobile banking growth is expected to continue. The aim is always to take better decisions for the firm’s progress. Amidst market globalization, growing interpenetration of national economies and Over reliance in agricultural production and tourism makes the country vulnerable to the economic high and lows. Most importantly e-retail brands find it the easiest to flourish locally. The study found that. Alagheband, P. (2006) Adoption of Electronic Banking Services by Iranian Customers. USIU-A Digital Repository Home → Journal Articles → School of Science and Technology → View Item; JavaScript is disabled for your browser. Factors affecting E-Commerce /Key Drivers of E-commerce/ Forces fuelling E-commerce There are many external environmental factors that can affect e- business. 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. Authors: Jimmy Macharia. CPG, FMCG & Retail 09-25-2020. h�bbd```b``z"��;�d�"y׀�y�$c��1DZ� ��+��&�� Q��8�3@� - The use of IT to conduct business online is known as Electronic Commerce (E-Commerce). By Jimmy Macharia. Number and type of government initiatives to support use and development of modern technology 2. Growth in foreign markets can be full of … The government and the politicians work in collaboration to devise rules and regulations, the citizens, businesses and the retail industry has to obey them. by e-commerce, prior studies on e-commerce adoption have come with conflicting conclusion. promote success of e-procurement in the public sector in Kenya. If the government raises sales taxes, then it would increase the prices … In the 1990s its GDP growth rate fell even further to 1.5%. E-commerce in Kenya. The reason is that these startups have minimal infrastructure and inventory and rely heavily on information and communication. On the Explanation of Factors Affecting E-commerce Adoption, in Twenty-Second International Conference on Information Systems, 109–120. In its simplest form e-commerce can be defined as the exchange of business communications and transactions over internet technologies. Factors Affecting the Online Transactions in the Developing Countries: A Case of E-Commerce Businesses in Nairobi County, Kenya . Discouraging rules and regulations of the government 3. In 2000, the IMF and … (Nairobi), M.Sc. 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 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. Social factors: Socio cultural factors too have a deep impact in ecommerce industry. 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. One fundamental decision facing retail banks in Kenya is how to influence more potential customers to adopt e-banking. The purpose of this study is to know the factors affecting the adoption of e-commerce in Nigeria. In fact, in information based product industries, distribution and sale via ecommerce may bring the cost per unit to almost zero. 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. 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. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. It also looked at the various modes of payments and how this affected the growth of the various e-commerce businesses. 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 … Journal of Business Economics and … 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. As expected, the latter two correlate moderately with each other. Sohrabi, M., Yee, J. and Nathan, R. (2013) Critical Success Factors For the … Factors affecting E-commerce adoption in Kenya’s SMES ... commerce among SMEs in Kenya with particular reference to exhibition stalls in Nairobi’s CBD. Í®ìC]?-ìñÿÃNnRÚ&LXÅVr~ºîa7¿¶pv6^Lg ÆóíÛÑ¦)ÏÏar9ßy&Ps@ñ§ ½?yvû¶y6iól|E@}íÒl^k¾T(¡ýÉb×§¿<2. Addresses: School of Business, United States International University, P.O. Corpus ID: 169344937. Technology acceptance model was developed in this study. 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 … 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 … Corpus ID: 169344937. 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. 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 … State of telecommunication infrastructure 2. Many organizations have turned their attention to Electronic Commerce In summary, cost reduction and customer related factors have emerged as the main drivers of e-banking adoption in Kenya. They are 1. 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). Kenya’s GDP has been inconsistent since it got independence since 1963. Box 222 – 00519; Mlolongo, Kenya 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. For example for the global leaders like Amazon and E-bay growth in Asia pacific region can be made difficult by the Red tape. Cite . Technology acceptance model was developed in this study. Kenya’s climate varies from semiarid in the northern part to the high rainfall areas in the central, western, and coastal regions. Kenyan shilling is the official currency of the nation. public sectors. 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 . Why many e-commerce businesses struggle. The online retailer, which also operates in 22 other African countries, recorded … The study adapted a quantitative survey approach that provided a suitable environment whereby SME owners/managers could respond on issues openly. 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. Previous studies have indicated that significant benefits are achieved by those SMEs that adopt and use e-commerce in their organisations. 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. 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. SEO brings in traffic. Google is sort of like an usher that decides which websites get to mingle near … 85 0 obj <>stream Five Objectives were proposed; Cost of ICT, ICT knowledge and skills, access to ICT, perceived benefits and Firm size context. Title: Factors affecting the adoption of e-commerce in SMEs in Kenya. management support is very crucial in. 60 0 obj <> endobj 10 E-commerce may involve Business-to-Consumer (B2C), Business-to-Business (B2B) transactions and business process. ��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��! 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! Login. Factors Affecting the Adoption of E-commerce in SMEs in Kenya. It is common for managers to assess each of these factors closely. … 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. governments with a focus on Kajiado. 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. The growth in online transactions is accompanied with an increase in the incidences of fraud. Corpus ID: 202721633. Reputational risks increases with an increase in use of e-banking. This was followed by lengthy delivery times. h�b```"if6. Show simple item record. A perfect example here would be … In this way, economic factors can have a direct and deep impact in the ecommerce industry. 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. 10 E-commerce may involve Business-to-Consumer (B2C), Business-to-Business (B2B) transactions and business process. Due to technological advanc… Odago and Mwajuma (2013) did a study on factors affecting effective. 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 14634-00800, Nairobi, Kenya. E-commerce has been predicted to be a new driver of economic growth for developing countries, (Humphrey et al., 2003). Successful entrepreneurs have different and very unique stories but there are certain shared factors that generally affect entrepreneurs. 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). Political Factors – 1. 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). Shoppers Shift Shopping Strategies to Brace for Recessionary Effects. ENVIRONMENTAL FACTORS. In Kenya alone, mobile penetration stood at 88.1% with 37.8million subscribers in 2015/2016, according to CAK. 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 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. There are many common reasons for the e-commerce struggle, and stores in different industries will face different hardships. The study sought to provide answers on the effect of internet coverage on e-commerce businesses in Nairobi, Kenya. %%EOF ABSTRACT: E-procurement system contributes significantly to national productivity growth through the removal of non-value added activities in procurement process. U.S. First, let’s talk about why so many e-commerce businesses struggle in the first place. 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. We look at these key factors and make a judgement call as to where Kenya is and what can be done. 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. ANALYSIS AND FINDINGS This paper aims to determine the various factors that influence e-commerce adoption among SMEs in Kenya. 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. Research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in retail businesses. 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. (2014) Factors Affecting Adoption of Electronic Banking System in Ethiopian Banking Industry. Bandwidth availability and Internet rates 2. 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. The study set out to determine the extent of e-commerce adoption in small and medium enterprises in Nairobi, Kenya. E-COMMERCE ADOPTION AMONG MICRO, SMALL AND MEDIUM SECTOR IN NAIROBI COUNTY, KENYA Phares B. Odhiambo Ochola B.Sc. |��W��L��>m��?�̀8x�$��l��z��zD�. Key drivers of e-commerce may be categorized in terms of 4 key business environment factors which influence the e-commerce industry. There are several risk factors affecting the e-businesses. 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} } 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. %PDF-1.4 %�� Political Factors Affecting Retail Industry Government Regulation & Political Influence. dc.contributor.author: Macharia, Jimmy: dc.date.accessioned: 2015-09-22T12:10:15Z: … It achieved a high economic growth rate of 6% which fell to below 4%. The purpose of the study was to investigate the factors that influence the growth of e-commerce in Nairobi, Kenya. Bultum, A. implementing e-procurement in the county. However, such benefits have not been realised in SMEs in developing economies like Kenya owing to the slow adoption of e-commerce. 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