Effect of e-commerce elements on organization performance of Small and Medium Enterprises: evidence from fashion firms in Nairobi City County

Abstract

The fashion and clothing industry is one of the most vibrant unit of the Small and Medium Enterprises in Nairobi County. However just like any other small and medium enterprise firms the businesses face a great chance of failure within the highly competitive industry. Research evidence shown that adoption of e-commerce elements has a significance and positive effect on the performance of firms. The current study sought to examine the effect of e-commerce elements on the organization performance of fashion firms in Nairobi City County. The study specifically examined the effect of online marketing, e-procurement and e-customer management affect organization performance. The research was premised on the technology acceptance model. The study utilized a descriptive research design with the unit of analysis being the fashion firms operating within Nairobi City County. The unit of observation was the managers/business owners of the fashion firms. The sample respondents of the study were 71 managers/owners. The research relied on both primary and secondary data. Primary data was sourced using a semi-structured questionnaire while the secondary data was corrected from journals and government reports. The research relied on descriptive and inferential analysis for the quantitative data while qualitative data was analyzed using content analysis. The analyzed data was presented using percentages, charts, figures and tables. The study was able to obtain a 92% response rate. Findings of the research indicated that all the predictor variables were positively correlated to organization performance. The overall regression results indicated that a positive effect of e-commerce applications on organization performance as indicated by coefficient of determination R2 = . 206. The research concluded that increased utilization of e-commerce applications was critical to enhancing organization performance. The study recommends that small businesses should foster their adoption of e-commerce applications to spur their growth. The findings of the study are expected to further policy formulation and the managerial practice.