E-business as a mode of international business engagement: the case of Kenya national hand-loom weavers association

Abstract

International Business involves doing business with geographically separated businesses. It has been in existence for a long time and the ways to go about it is of interest to countries as well as individuals. Previously, potential entrepreneurs have engaged in it through exporting, franchising, direct selling and so on. With these modes of engagement, those involved in business have experienced various challenges. With the advent of new concepts such as E-business, the focus has had to change. E-business encompasses the use of the Internet. The Internet may be considered to be border-less hence it is very applicable in international business as it bridges the gap i.e., the geographical separation. Anyone with access to a computer, which is connected to the Internet, can communicate with a potential business partner or a resource person as long as they are on the 'net'. This study therefore sought to determine the extent to which E business is adopted by firms in the handicraft sector to engage ill international business by focusing on The Kenya National Handloom, Weavers Association. Two objectives were pursued. These were: a) To examine the extent to which e-business IS being applied III promoting Kenyan products in the international market b) To identify how E-business has enabled handicraft business sector to do business internationally and make their mark in global sphere Primary data was collected through a semi-structured questionnaire, which was administered to a census population of twenty-six firms. The data was analyzed using descriptive statistics including proportions, percentages and tabulations. The niche sector of handloom weavers represents just a small portion of the handicraft sector and forms part of the larger small-business sector in general. The findings in this study reveal an overwhelming interest in using the Internet. Electronic mail or e-mail is the more common component of the concept. It was used for identifying markets as depicted by 57.1 % of the respondents who were using it for communication purposes while identifying potential markets. All the respondents felt that the Internet could be successfully used with the other modes of market entry and eventually it should be fully incorporated as the single mode of entry. Thus there is need for further research to be done ill further enhancing the use of this mode. The literacy level in terms of Internet and ICT in general, needs to be addressed. Thus the Internet should not only be limited to gaining entry into markets and for communication purposes but for other business support processes in the international business sphere such as distribution. A number of businesses would likely spring up in the rural areas in Kenya partly due to the fact that some of the raw materials used in this industry are readily available in rural Kenya. The Internet should thus be extended to rural' Kenya, which will have the dual advantage of marketing raw materials and handicraft wares in addition to opening up this part of Kenya to the rest of the world