An investigation into the factors that have influenced the adoption of e-commerce in retailing industry: the case of supermarkets in Nairobi

Abstract

This research aimed at accomplishing two important things. The first was to determine the awareness level of e-commerce in supermarkets in Nairobi and the second was to find out the factors that have served to influence its adoption. The rationale of the study arose from the fact that e-commerce has rapidly grown in other parts of the world, with the retailing industry being one of the leading adopters. However, even with the emergence of the Internet in Kenya and the ability to access it through the growth of Internet Service Providers, very little has practically been done in the area of e-commerce. The study required collecting information from the supermarkets in Nairobi and twenty-two of them responded positively. Data was collected using structured questionnaires, which were normally dropped and picked up later at an agreed date The data was analyzed using descriptive statistics and Factor Analysis, through the use of the SPSS (Statistical Package for Social Sciences) computer program. Results following the analysis indicated that there is still a lot of ignorance with respect to e-commerce. This affects the management attitude in implementing and for many establishments, it is not yet integrated into their business plan, evidenced by their low budgetary commitment. As such, the staff are not properly trained to prepare themselves for the challenges of emerging technology and the strong tides of globalization. Only a few supermarkets realize its vast potential and the opportunity to reap a host of benefits through competitive advantage. Further, it was found out that the depressed economic climate has not favoured new investment. The telecommunications industry also needs to be fully liberalized for supermarkets to take advantage of lower connectivity costs through the introduction of better technology and hopefully, more competitors.