Effect of E-Commerce on Performance in Agricultural Sector in Kenya: A Case of Twiga Foods Limited

Abstract

The purpose of this study was to determine the effect of e-commerce on performance in agricultural sector in Kenya with Twiga Foods as the case study. The study was guided by the following research questions: What is the effect of e-commerce mode of payments on performance of Twiga Foods? What is the effect of e-commerce security factors on performance of Twiga Foods? What is the effect of internet availability on performance of Twiga Foods? The study used descriptive research design because it enabled both collections of qualitative and quantitative data without influencing the environment of the study and also entailed the descriptions of the attributes the target population exhibited. The target population for this study comprised of 33 managers and supervisors working at Twiga Foods were used as a sample size that has been determined through a census. Simple random sampling was used as a sampling technique and a closed ended questionnaire was used for data collection. Data analysis used both descriptive and inferential statistics whereby descriptive statistics analyzed the means and standard deviation while inferential statistics was used to analyze correlational analysis and regression analysis. A statistical Package for Social Sciences (SPSS) software version 24 was used in analyzing the findings. The results and findings were presented using tables and figures. The study established that e-commerce mode of payment had a strong and positive relationship with performance, r (0.847); p-value < 0.01. The results of the regression analysis indicated that 71.8% of changes in Twiga Foods performance is explained by e-commerce mode of payment. The results of the study showed that internet availability had a significant relationship with performance, r (0.558); p-value < 0.01. While the results of the regression analysis showed that 31.1% of changes in performance of Twiga Foods is explained by internet availability. Lastly, the findings of the study showed e-commerce security factors had a statistically significant relationship with performance, r (0.493); p-value < 0.01. And the R-square of 24.3% indicated that changes in performance is explained by security factors. This study concluded that e-commerce mode of payment enhances service delivery to customers since potential clients are able to conveniently make payments on their purchases using the best payment alternative that makes them comfortable. Secondly, internet availability is essential for business performance. Availability of internet services supports v e-commerce operations to run effectively since e-commerce activities require internet for it to run efficiently. The study has also established that e-commerce security factors are crucial for business performance of e-commerce business. E-commerce security factors influence customer trust as well as satisfaction since customers are concerned about their safety when accessing online shopping applications and websites. Lastly, having fraud detection mechanisms enhances customer satisfaction as well gaining a competitive advantage for the organization. The study recommended that Twiga Foods should implement various mode of payments to enhance their business performance as well as its market share. This attracts more customers into the site as they have various options to choose from on how to make payment for goods. Secondly, the company should partner up with potential partners and support initiatives that are in line with the improvement of internet service supply in the country to enhance e-commerce business. Thirdly, Twiga Foods should develop fraud detection mechanisms that will ensure safety to their customers when accessing the website. Fraud detection mechanisms will enhance customer trust as well as loyalty that is critical for the company’s business success. Lastly, Future studies should be carried on other sectors like pharmaceuticals, hotel industry, retail industry and education to establish the effect of e-commerce on performance.