The impact of E-commerce on business development in Kenya : a case of 5 Star Hotels in Mombasa
Mohamed, Adam Abdulrahim
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The Internet has grown since its inception and is now commonly used in all sectors of the society and in all corners of the globe. It has quickly become one of the most valuable assets in modern technology, and as such, is developing as an integral part of modern business. The Internet has led to the birth and evolution of electronic commerce or Ecommerce which enables organizations to lower operational costs and improve sales. Although E-commerce is becoming popular day after day, there are fears that firms in developing countries may not be reaping its potential benefits. The broad objective of this study was to contribute to the debate about the impact of ecommerce on firms in developing countries by examining its impact in the 5 star hotels in Mombasa, Kenya. The study provided a basis for assessing the extent of adoption and the perceptions of the impact of e-commerce on firms in Kenya. It also examined the extent to which 5 start hotels in Mombasa, Kenya use electronic commerce in their day-to-day operations. Finally the study attempted to explore the barriers that 5 star hotels face to hinder the use of e-commerce. The research found out that the use of e-commerce in hotels was limited to e-mail and simple Internet browsing. Only one hotel reported the use of e-commerce in supply chain management. The findings also indicate that the little e-commerce used in hotels has helped in cutting down operational costs and increase revenues. These findings support the argument that e-commerce has a direct impact in business development. The research findings further indicate that high cost of equipment and internet bandwidth pose as the main barriers to full adoption of e-commerce in 5 star hotels.