INFLUENCE OF E-BUSINESS STRATEGIES ON PERFORMANCE OF ONLINE RETAILERS IN KENYA

Abstract

This study aimed to establish the influence of e-business strategies and performance of online retailers in Kenya. The specific objectives were to establish the influence of online transaction processing systems, electronic customer relation management, and electronic supply chain management and alliance strategy. The theories that guided this study were Dynamics capabilities theory, the resource dependency theory and Transaction cost theory. This study used descriptive design with questionnaire as the instrument for data collection. This study used descriptive design with questionnaire as the instrument for data collection. The target population was 45 online retailers in Kenya. Non-probability sampling was used and the sample size was 45 operations, marketing and finance senior staff of each online retailer making a total of 135. The study used both secondary data and primary data. Data collected was analyzed using SPSS version 21.0 to produce frequencies, descriptive and inferential statistics which were used to derive conclusions. The study findings from the regression model indicated that all the study variables that is Online Transaction Processing system, electronic Supply chain management, electronic customer relationship management and Strategic alliances influence performance of online retailers positively. The study recommends online retailers in Kenya to ensure that their online modes of payment in the company are secure. There is also need for online retailers to accept online payments such as credit/debit cards by the company. The study further recommends online retailers to readily provide information on about their products. The study further recommends for the use of Electronic supply chain Management to forecast future demands for the firm. There is also need for online retailers to readily avail their stocks for customers who may want to order online. Further, the study recommends online retailers to adopt the use of Electronic Customer Relationship Management to enable the firms acquire new customers. There is also need for online retailers to readily avail Information on products and services online to the customers. In addition, the study recommends for the maintenance of a database for all their customers.