Digital Transformation: Is There Any Link with Market Performance of Pharmaceutical Micro, Small and Medium-Sized Enterprises in Kenya
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
American Social Science Society
Abstract
The business-operating environment in Kenya and especially in the City County of Nairobi has
caused a large number of pharmaceutical Micro, Small, and Medium-Sized Enterprises report profit
warnings and thus experience performance issues. Data from the World Bank for the previous two
years indicate pharmaceutical MSMEs operating in Kenya have seen a decline in profits and
stagnation. The study therefore sought to establish the effect of digital transformation elements,
including e-procurement, e-marketing, e-payment, and telemedicine, on the market performance of
pharmaceutical Micro, Small, and Medium Enterprises (MSMEs) in Nairobi City County, Kenya.
The research examines the limited understanding of how these digital technologies influence market
performance, particularly in the pharmaceutical MSME sector. The study employs a cross-sectional
descriptive research design, surveying 122 MSMEs from an initial target population of 175, selected
through proportionate and simple random sampling. The questionnaire was tested for validity and
reliability using Cronbach's alpha with a threshold of 0.7. Quantitative data were analyzed through
multiple regression and correlation analysis to determine the strength of the relationships between
variables. The results reveal that e-procurement, e-marketing, e-payment, and telemedicine
significantly and positively affect market performance. The findings suggest that these digital
strategies enhance procurement efficiency, marketing outreach, financial transactions, and
healthcare service delivery, ultimately improving the market performance of pharmaceutical
MSMEs
Description
Research article
Keywords
Citation
Githua, M. N., & Muathe, S. M. (2024). DIGITAL TRANSFORMATION: IS THERE ANY LINK WITH MARKET PERFORMANCE OF PHARMACEUTICAL MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN KENYA. American International Journal of Social Science Research, 15(2), 1-12. https://doi.org/10.46281/aijssr.v15i2.2250