International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

ICT Attributes as Determinants of E-commerce Adoption by Formal Small Enterprises in Urban Kenya \
Daniel M Wanyoike, Elegwa Mukulu, Anthony G Waititu

In recent years, there has been increased Information Communication Technology (ICT) advancement in Kenya that provides opportunities for small enterprises to improve their business performance. In these regard, the purpose of this study is to gain a deeper understanding on the determinants of e-commerce adoption and usage by formal small enterprises in urban Kenya. The study examined relationship between e-commerce adoption and perceived ICT attributes. Previous studies carried out in Europe, America, Asia and South Africa have shown that innovative use of e-commerce is a crucial intervention tool that has catalytic effect on business performance. Stratified random sampling was used to choose a sample of 400 small enterprises located in four main urban towns of Kenya. The survey instrument was a questionnaire administered to the business owners. Analysis of data was done using descriptive and inferential statistics. Results of the research show that small formal enterprises in urban Kenya are influenced to adopt e-commerce by being able to observe visible results emanating from its use such as simplification of work routines, efficient coordination among various value chain partners, increased productivity and improved customers services that leads to customer satisfaction. Majority of entrepreneurs viewed e-commerce as an avenue of venturing into new markets but not as a tool for developing new products and services. Based on the findings, the study recommends training institutions in collaboration with ICT board of Kenya and relevant line ministries to come up with ICT demonstration sites equipped with virtual businesses for entrepreneurs to train on effectively use e-commerce in their businesses.

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