Strategic Positioning and the Performance of E-Businesses in Kenya

Abstract

The objective of this study was to examine the influence of strategic positioning on the performance of e-commerce firms in Kenya. The study was grounded on the competitive advantage theory and was guided by a positivist philosophical perspective. The study was delimited to the use of quantitative research methods. The research sample consisted of 112 e-business enterprises that were registered in Nairobi. The focal point of the analysis was the 336 employees who held management-level positions within these companies. The study employed a structured questionnaire as a means of gathering data from participants. The study employed the census sampling method, encompassing all 112 e-business enterprises registered in Nairobi. The data was subjected to both descriptive and inferential statistical analyses. Descriptive statistical analysis was employed to generate means and standard deviations, while regression analysis was utilized in the study to test the hypothesis. The results of the study indicate that strategic positioning has a significant influence on the performance of e-businesses in Nairobi, Kenya (β = 0.616, p < 0.05). The study implication is that the strategic positioning constructs of differentiation and pricing are essential to enable e-businesses to attain their performance objectives. Consequently, it is recommended that e-commerce executives implement features on their platforms that facilitate the comparison of product prices by customers. Additionally, it is suggested that e-businesses should offer a variety of products at discounted and premium prices, which come with enhanced features and improved services.