E-commerce and Sustainable Competitive Advantage of Savings and Credit Cooperative Societies in Nairobi City County
Abstract
The evolution of information technology has had a significant effect on business
operations and this has changed market structures and the degree of competition.
Businesses are able to connect faster at a lower cost both internally as well as externally,
in a local scale as well as globally. The adoption of information communication
technology has also led to enhanced business operations, by increasing efficiency as well
as productivity thus creating a competitive advantage for organizations. The Sacco sector
makes significant contribution to development of the country’s economy. It is among the
active sectors whose competition status is ever increasing as the number of registered
Saccos continue to increase. As a result the organizations are forced to find ways to
improve how they serve their members. Adoption of ecommerce has been cited to be one
of the things that Saccos can invest in to enable them improve their service delivery. The
focus of this study was E-Commerce and sustainable competitive advantage of SACCOs
in Nairobi City County. The research objective was to determine ways in which ECommerce
contributes to sustainable competitive advantage of SACCOs in Nairobi City
County. The two theories that informed this research include the resource based view and
the transaction cost theory. The study utilized cross sectional survey as the research
design of choice and used primary data that was collected by distributing questionnaires
to the respondents. Data analysis was undertaken quantitatively using descriptive
statistics and inferential statistics. The research showed that parameters of Ecommerce
had a significant relationship with sustainable competitive advantage of Saccos whereby
the coefficients recorded included 0.067 for strategy alignment, 0.121 for inter
organizational linkages, 0.178 for business process integration and 0.153 for
organizational agility. The study concluded that E-commerce contributed to the
sustainable competitive advantage for Saccos. The researcher recommended that more
training should be conducted with regards to E-Commerce as well as enhancing the
budget towards acquisition and maintenance of the system. The researcher also gave
suggestions for further studies in the area of implementation strategies for E-Commerce
as well as conducting similar study in a different context for comparability purposes.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1432]
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