Factors that influence adoption and frequency of use of E-commerce by Micro and Small Enterprises (MSES) in Kisumu, Kenya

Abstract

The objectives of this study were to find out the factors that influence the adoption of e-commerce and frequency of use of e-commerce in Kisumu, Kenya. The study revealed that the variable knowledge of benefits derived from e-commerce and infrastructure would enable businesses to actively pursue e-commerce. Cost of ecommerce implementation within the business and technical skills and IT knowledge amongst owners and employees would additionally encourage businesses in venturing into e-commerce. The research design appropriate for this study was a survey. A sample of one hundred and fourteen Micro and Small Enterprises based in Kisumu town were used for the study and data collected majorly from owner-managers. The respondents were selected from the Local Municipal Council of Kisumu town 2010 records and the survey ensured that information gathering was comprehensive. The data was coded by using SPSS. Descriptive statistics was used mainly to summarize the data whilst frequency tables used to analyse the general information and e-commerce application data. The research recommended that workshops should be conducted for MSE’s owners and employees should be educated on the importance of and benefits of e-commerce in business. The knowledge by the owners and employees on the benefits of IT tools would drive the increased and sustainable adoption of e-commerce in the MSE sector in the country. Accordingly, there is need for further studies to be done to investigate easy and sustainable approaches that can be employed to educate owners and employees of MSEs on the benefits of e-commerce tools in business. This kind of a study would build on the existing body of knowledge and give greater insights on how e-commerce can be adopted faster and easily for greater growth of the MSE sector in Kenya.