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Factors Influencing Performance Of Online Businesses In Kenya: A Case Of Businesses In Nairobi County

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dc.contributor.author Kiboro, Scholastica Wangui
dc.date.accessioned 2019-01-17T11:08:36Z
dc.date.available 2019-01-17T11:08:36Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4166
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract This study sought to determine factors that influence the performance of online businesses in Kenya and in particular those domiciled within Nairobi County. The study was informed by the following research questions; to determine factors supporting the growth of online businesses in Kenya,to assess challenges confronting online entrepreneurs in kenya and to establish effective growth strategies for online businesses in Kenya. The study adopted a cross-sectional survey design with the target population for this study being online companies with official premises within Nairobi County. The target population for this study comprised 52 online companies (Appendix II) with official premises within Nairobi County (My Tech Informer, 2018). Since the population of the study was small (52 firms) this study included all of them in the study hence a census. A structured questionnaire was adopted in this study as a method of collecting primary data. The collected data was analyzed using Statistical Package for Social Sciences (SPSS) and Excel. Both descriptive and inferential statistics were used to analyze the findings The findings were presented using tables and figures. The first objective of the study was to determine factors supporting the growth of online businesses in Kenya. The respondents were found to agree that the cost of accessing internet was favorable, internet experience of the buyers was good, customers’ knowledge of the internet was sufficient and the pricing of goods online was good. They also agreed that internet speeds in the country, the level of education of customers was high on average and that the level of trust in institutions was high. Key to note is that, the respondents neither agreed nor disagreed that the income level of the customers was high customer support programs by existence of the telecommunication infrastructure and also that internet culture of target customers is good. The average mean and standard deviation were 3.71 and 0.584 respectively. This showed that the respondent agreed on average and that most of the underlying factors resulted into significant influence on growth of online businesses. The second objective of the study examined the challenges confronting online entrepreneurs in Kenya. The study revealed that that the cost of energy in the country was high, there was inadequate reliability on online transactions, difficulties in accessing the internet and inexistence of some common ICT infrastructure, standards and applications. The respondents saw these as the major challenges hindering online business of enterprises. However, the respondents neither agreed nor disagreed that the level of initial set-up costs for online businesses is high and also that E-commerce software is incompatible with other applications. The average mean and standard deviation were 3.64 respectively, showing that the respondents agreed and that the identified were challenge that greatly affected performance of online businesses. The third objective of the study examined the effective growth strategies for online businesses in Kenya.The results showed that the respondents agreed that capabilities in employees, offering price discounts, arranging for sales, expansion of the existing market for our goods, ensuring stable market for customers, external relations, efficient internal processes and market segmentation were efficient strategies in promoting growth of online businesses. The average mean and standard deviation were 3.86 and 0.981 respectively implying that the respondents agreed that these underlying strategies identified were effective in promoting growth of online businesses. Among other strategies adopted by online businesses in Kenya for growth include market research, competitor analysis through SWOT and hiring of skilled employees. In conclusion, there was a positive relationship between factors supporting the growth of online businesses and performance of online businesses. with the most significant factors being security of the various payment methods, strictness in enforcement of legal provisions on cybercrimes and the level of trust in institutions. Also to note is that the most effective strategies for growth of online businesses include research and development, creation of new markets, running promotions and adoption of technology in operations.The level of IT skill base, privacy of customer information, social interaction in online businesses, cost of energy, reliability of online transactions and efficiencies were identified as significant challenges that affected growth of online business Since internet experience of the buyers, security in payment systems, strictness in enforcement of legal provisions on cybercrimes and the level of trust in institutions had were significant factors supporting growth of online businesses, the study recommends that all online companies in Kenya should pay greater attention and emphasis on these factors to grow their organizations. Less emphasis should be paid on level of income of customers, e-commerce awareness, accessibility to internet and internet culture of target customers since they were least significant. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Online Businesses en_US
dc.subject Businesses en_US
dc.subject Nairobi County en_US
dc.subject Performance en_US
dc.title Factors Influencing Performance Of Online Businesses In Kenya: A Case Of Businesses In Nairobi County en_US
dc.type Thesis en_US


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