Omnichannel Retailing and Performance of Large Scale Retail Stores in Nairobi City County, Kenya
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Date
2025-10
Authors
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Publisher
Kenyatta University
Abstract
The retail sector faces performance challenges due to technological disruption, intense
competition and unpredictable consumer behaviors. The retail sector has experienced a
negative annualized average rate of revenue growth of 2.4% over the last seven years, and
retailers have struggled with sales growth and operational efficiency. The objective of the study
was to examine the effects of omnichannel retailing on performance of large scale retail stores
in Nairobi City County, Kenya. The specific objectives were to determine the effects of
omnichannel integration, omnichannel order fulfilment, and the omnichannel service
configuration on the performance of large scale retail stores. The study established the
moderating effects of dynamic capabilities and mediating effects of brand equity on the
performance of large scale retail stores. This study was grounded by the following theories;
Resource Based View (RBV), social exchange, dynamic capabilities, Unified Theory of
Acceptance and Use of Technology (UTAUT), and double jeopardy theory. The study was
guided by positivism research philosophy, utilized the cross sectional approach, descriptive
and explanatory research designs. The unit of analysis was the large scale retail stores within
Nairobi City County while the departmental heads from marketing and sales, information
technology, finance, and operations/logistics were the unit of observation. The pilot testing
was conducted on the study questionnaires prior to their utilization in data collection. The
reliability of the questionnaire was assessed using Cronbach alpha where 0.7 level was
considered reliable, and where all the variables in the study were found to be higher than the
cut-off. The multiple linear regression was used in testing hypothesis and making inferences.
The research utilized 5% significance level to determine significance in hypothesis testing.
Content analysis was used to extract meaning, and make inferences from qualitative data. A
correlation analysis revealed statistically significant correlation between omnichannel
integration, omnichannel order fulfilment, and omnichannel services configuration, as well as
brand equity and dynamic capability on the performance of large retail stores; indicating
possible relationship between these variables. The regression analysis revealed that
omnichannel retailing significantly affected the performance of large scale retail stores. It was
observed that omnichannel integration, and omnichannel service configuration directly
influenced the performance of large scale retail stores with the factors exuding statistically
significant influence with the ability to explains 29.8% of the variability in retail stores
performance. However, omnichannel order fulfilment has no statistically significant effect on
the performance of large scale retail stores. The study found that dynamic capabilities and
brand equity significantly affect the relationship between omnichannel retailing and the
performance of large scale retail stores. The study therefore concludes that omnichannel
retailing influences performance of large scale retail stores, and this effect is influenced by the
stores’ dynamic capabilities and brand equity. Thus, the study proposes that the retailing sector
should embrace omnichannel retailing while optimizing dynamic capabilities and aligning with
brand equity, which will enhance the overall performance retail stores. The findings indicate
that omnichannel order fulfilment has no statistically significant effect on the performance of
large scale retail stores, thus providing an avenue for future studies in different sectors with
additional variables
Description
A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Doctor of Philosophy in Business Administration (Marketing) of Kenyatta University. October, 2025
Supervisor
Samuel Maina
Reuben Njuguna.