Impact of E-Commerce as a Business Tactic on Sales Growth of SMEs in Nairobi

Abstract

In recent years, the global business environment has experienced a paradigm shift, with technological advancements influencing consumer behavior and reshaping traditional modes of commerce. E-commerce, encompassing online platforms, electronic payments, and digital marketing, has emerged as a game-changer for businesses, providing them with a dynamic channel to connect with a wider audience. For SMEs in Nairobi, often characterized by resource constraints and intense market competition, adopting E-commerce strategies becomes imperative to navigate the contemporary business terrain. The surge in technological advancements and the widespread adoption of digital platforms have significantly transformed the business landscape, particularly for Small and Medium-sized Enterprises (SMEs) in Nairobi. While the integration of e-commerce is often viewed as a strategic business tactic with the potential to enhance sales growth, there remains a gap in understanding the nuanced impact of this approach on SMEs in the Nairobi region. Therefore, there is need to bridge this research gap by conducting a thorough investigation into the impact of e-commerce as a business tactic on the sales growth of SMEs in Nairobi. The theoretical framework for this study draws upon the Technology-Organization-Environment (TOE) framework, coupled with elements from the Diffusion of Innovations theory. The research design for this study employed a quantitative research method to provide a comprehensive understanding of the phenomenon. Stratified random sampling was employed to ensure representation from different sectors. Statistical analysis was employed to examine the relationships between adoption of e-commerce and sales growth using SPSS. The findings reveal a diverse landscape of adoption of e-commerce among SMEs in Nairobi, with notable representation across different industry sectors. The findings resonate with existing literature that emphasizes the positive association between e-commerce adoption and sales growth for SMEs.