E-commerce strategies and organizational performance in the manufacturing sector in Nairobi city county, Kenya.

Abstract

Despite increased internet usage in Kenya, the manufacturing sector has been experiencing more and heightened challenges contributing to its flat growth rate for the last decade with global developments such as the latest arising from the COVID-19 virus affecting logistics and supply chains. The study, therefore, sought to examine e-commerce strategies' effects on organizational performance in the manufacturing sector within Nairobi County, Kenya. The specific objectives of the study included examining the effects of e-platform strategy on corporate performance, determining how e-payment strategy options influence corporate performance, and finding out the effects of e-logistic strategy on corporate performance. The study was anchored on the unified theory of acceptance and use of technology (UTAUT), resource-based view theory, and task technology fit theory. The study employed a descriptive research design where primary data was collected using questionnaires from the listed manufacturing industries with a target population that comprised 69 manufacturing firms. Sampling was done in two stages; random sampling to select the number of firms and purposive to select the respondents who were the key managers in IT, finance, logistics, and marketing departments. In data analysis, quantitative data were collected and analyzed using descriptive statistics and inferential with the aid of the software Statistical Packages for Social Sciences (SPSS). The mean and standard deviation of the study was enumerated and presented in tables, graphs, and charts. The inferential statistics was done by use of regression and correlation analysis to prove the strength and the interdependence between the dependent and independent variables. Construct validity showed a description of whether support is given by the case study concerning the interpretation of the variables in the study, Cronbach’s Alpha technique was used to estimate the reliability of the research instrument. This study is significant in that it will benefit the Government of Kenya in understanding to what extent e-commerce strategies are being used in the manufacturing sector. The Managers of the manufacturing companies will also benefit by understanding what strategy works well on performance and academicians and future researchers will find this study of great importance to them as they use the findings of the study as the basis for further research to fill the available and identified research gaps.