Factors affecting Ecommerce adoption among Small and Medium Enterprises (SMEs) in Developing Countries

Titel Department of Computer and System Science Factors affecting E commerce adoption among Small and Medium Enterprises (SMEs) in Developing Countries The Context of Kenya Examensarbete Författare Va.

Department of Computer and System Science

Factors affecting E-commerce adoption among Small and Medium Enterprises (SMEs) in

Handledare: Karin Ahlin

Examinator: Thomas Persson Slumpi

Kurskod: IK100G

Utbildningsprogram: Informatik med inriktning systemutveckling

Acknowledgments

I would like to acknowledge and express my sincere gratitude to all my teachers at Mid Sweden University for their priceless impact throughout my bachelor's degree and for allowing my dream to come true My special gratitude goes to my research supervisor Karin Ahlin for her invaluable insight, support, and feedback throughout this study

I am also deeply thankful to my informants Although their names cannot be disclosed, I want

to acknowledge and appreciate their precious time and generous information that helped me to shape this study

Finally, I would like to express my deepest gratitude to my dear husband, parents, siblings, and friends who have always encouraged and believed in me This accomplishment would not have been possible without them Thank you

Sammanfattning

Elektronisk handel har radikalt revolutionerat de traditionella affärsmetoderna över hela världen E-handel erbjuder stora fördelar och möjligheter för företag Trots fördelarna har dock flera forskare visat att små och medelstora företag har släpat efter inom e-handeln Syftet med denna studie var i detta avseende att undersöka de faktorer som påverkar införandet av e-handel bland små och medelstora företag i utvecklingsländerna, i Kenya

Studien använde sig av ett kvalitativt ansats genom vilket, empiriska data samlades in genom halvstrukturerade intervjuer Målgruppen bestod av chefer/ägare av små och medelstora detaljhandelsföretag som använder någon form av e-handelssystem i sin affärsverksamhet Studien identifierade ett antal motiverande faktorer som ligger bakom implementation av e-handel Dessutom, för att undersöka dessa faktorer, används den forskning (TOE) ramverk som bistår av den tekniska, organisatoriska och miljömässiga faktorer Studien identifierade en till faktor som är relaterad till kulturella sammanhang

Studien identifierade ett antal faktorer som omfattar bland annat kostnaden för IT, de fördelar som erbjuds av e-handel, kompatibilitet, brist på tydliga statliga bestämmelser, samt brist på infrastruktur Denna studie identifierades ytterligare en nationell faktor som är i samband med sociala och kulturella sammanhang i Kenya, såsom motstånd mot att anta en kultur av handel

på nätet, brist på förtroende, bristande av IT-medvetenhet, nationella postadressystem etc

Abstract

Electronic commerce (EC) has radically revolutionized traditional business practices across the globe It is also believed that EC offers considerable benefits and opportunities for enterprises Despite the benefits, however, several scholars have shown that Small and medium-sized enterprises (SMEs) have been lagging in EC adoption In this regard, this study aimed to explore the factors that influence EC adoption among SMEs in developing countries, in the context of Kenyan retail SMEs

The study employed a qualitative approach through which empirical data was collected by semi-structured interviews The target population consisted of managers/owners of retail SMEs that use some form of EC technology in their business operations The study identified several motivating factors for the adoption and implementation of EC Moreover, the research used (TOE) framework, the technological, organizational, and environmental (TOE) framework with

an added national factor, to study and understand the factors affecting EC adoption among SMEs The study identified some factors ranging from, but not limited to the cost of IT, the benefits offered by EC, compatibility, lack of clear government regulations, the role of managers, lack of infrastructure The study further identified a national factor associated with the social and cultural context in Kenya such as the resistance to adopt a culture of purchasing online, lack of trust, lack of IT awareness, national address system, etc

Keywords: Electronic Commerce (EC), Online retailing, E-commerce adoption, Developing countries, Kenya, Small and Medium-Sized Enterprises (SMEs)

Contents

ACRONYMS 3

1 INTRODUCTION 4

1.1 B ACKGROUND 4

1.2 P ROBLEM S TATEMENT 5

1.3 T HE OBJECTIVES OF THE STUDY 5

1.4 R ESEARCH Q UESTION 5

2 THEORETICAL BACKGROUND 6

2.1 EC D EFINITION 6

2.2 T YPES AND B USINESS M ODELS OF EC 6

2.3 M OTIVATIONS AND DRIVERS FOR EC A DOPTION 7

2.4 T HE B ENEFITS OF EC 7

2.5 C HALLENGES OF EC 8

2.6 SME S AND EC ADOPTION IN K ENYA 10

2.7 R EVIEWING EC A DOPTION F ACTORS IN SME S 10

2.8 T ECHNOLOGICAL F ACTORS 11

2.9 O RGANIZATIONAL F ACTORS 11

2.10 E NVIRONMENTAL F ACTORS 11

3 RESEARCH DESIGN AND METHODS 13

3.1 Q UALITATIVE S TUDY 13

3.2 D ATA C OLLECTION 13

3.3 S ELECTION OF ORGANIZATION 13

3.4 P ARTICIPANTS P RESENTATION 14

3.5 D ATA A NALYSIS 14

3.6 E THICAL I SSUES 15

4 RESULT 16

4.1 I NTRODUCTION 16

4.2 M OTIVATIONS OF EC A DOPTION FROM THE RESPONDENTS 16

4.3 F ACTORS I NFLUENCING EC A DOPTION AMONG RESPONDENTS 18

4.4 T ECHNOLOGICAL F ACTOR 18

4.4.1 Technology Cost and Compatibility 18

4.4.2 Potential and Realized Benefits 18

4.5 O RGANIZATIONAL F ACTOR 19

4.5.1 IT expertise and Managerial Support 19

4.5.2 Financial Resources 20

4.6 E NVIRONMENTAL F ACTOR 20

4.6.1 Competitors 20

4.6.2 Government Regulations 21

4.7 N ATIONAL F ACTOR 21

5 ANALYSIS 22

5.1 EC ADOPTION MOTIVATIONS ANALYSIS 22

5.2 F ACTORS I NFLUENCING EC A DOPTION IN SME S IN K ENYA ANALYSIS 23

6 DISCUSSION 25

6.1 C HALLENGES WITH DATA COLLECTION 26

6.2 M ETHODOLOGY D ISCUSSION 26

6.3 S OCIETAL IMPLICATIONS 27

7 CONCLUSION 27

LIMITATIONS OF SUGGESTIONS FOR FUTURE RESEARCH 28

REFERENCE 29 APPENDIX A 32

I NTERVIEW Q UESTIONS 32

Acronyms

EC, E-commerce: Electronic Commerce

ICT: Information and communications technology

SMEs: Small and medium-sized enterprises (SMEs)

EDI: Electronic Data Interchange

EFT: Electronic Funds Transfer

E: Represent Electronic and communication retail firm

S: Represent Supermarket products retail firm

F: Represent Flower retail firm

B: Beverage and Food firm

COD: Cash on delivery

1 Introduction

1.1 Background

The rapid penetration of the Internet and other advanced information technologies have given rise to the concept and practice of electronic commerce Though there is no consensus of E-Commerce (EC) definition, it has often been referred to as the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, mostly through the Internet and intranets (Turban et al., 2015; Kutz, 2015)

Although EC may appear as a relatively recent concept, the history of EC dates back in 1960 when technological developments implied that information could be shared electronically The two main leading technologies during this time revolved around Electronic Data Interchange also known as EDI and Electronic Funds Transfer (EFT) The increase of these technologies was more noticed in the late 1970s and allowed business organizations to transfer commercial documentation electronically However, access to these applications was limited to large corporations and financial institutions (CompuServe, 2020; Tian & Stewart, 2006; Laudon, K

& Traver, 2017) The popularity of the internet and the genesis of the World Wide Web allowed large access of the internet to the public and commercial enterprises This allowed numerous companies to utilize EC applications in their operations As a result, EC has increased over time with more companies generating communication channels with its customers to enhance trade relations (Villa et al., 2018)

EC is considered as a powerful concept that has fundamentally transformed business processes

in a good number of enterprises worldwide It has undeniably revolutionized the business practices; thus, businesses now regardless of their size, understand that the adoption of EC in their business activities is no longer an option but a requirement for survival and competitiveness (Wanzu et al., 2018) Thanks to the advances in information technology, as well as the high internet penetration and mobile communication connection, people now can do

a variety of commerce activities online (Yang, 2017)

Prior studies hold a common view that EC along with other technological innovations have a positive impact on business operations and bring with them significant benefits (Abukar et al., 2018) Some benefits are often related to improvement in operational efficiency, access to a wider range of markets, competitive advantage, information consistency, the ability to operate across the various platforms in real-time, limitless geographical location, etc (Kanyaru and Kyalo, 2015)

Unfortunately, Small and Medium Enterprises in developing countries are yet to realize the benefits from EC, Kenya not being an exception The latest report of UNCTAD (2019) depicts the significant EC gap between developed and developing countries While EC creates opportunities for businesses worldwide to reach new markets, developing countries have not been able to reap the benefits of these opportunities According to Abukar et al (2018), many challenges have been diverse for SMEs in developing countries as far as EC adoption is concerned Despite these challenges, Kanyaru and Kyalo (2015) refer EC among SMEs as the catalyst to achieving economic growth and development Additionally, various studies agree

on the low uptake and stringent impediments faced by EC adoption among Small and sized businesses in Kenya (Sokobe, 2018) In this regard, this research seeks to study the factors influencing EC adoption among SMEs in Kenya

Medium-1.2 Problem Statement

SMEs in Kenya and Africa in general, face many challenges to achieve effective and efficient business performance (Achiando, 2019) Yet, the socio-economic importance of SMEs is unquestionably essential as they constitute more than 90% of all businesses in Kenya (African Review, 2017)

In the current digital era, many businesses, regardless of size are unlikely to survive without better use of information technology, particularly SMEs Given the competitive challenges faced by many businesses today, several studies suggest the necessity for SMEs to adopt EC and other innovative information technology According to Achiando (2019), EC offers enormous benefits for SMEs and considerable prospects to increase effectiveness, efficiency, global market, etc According to OECD research, EC opens a range of opportunities for SMEs Thus, they can widely benefit from EC and other related information systems (OECD, 2017) However, previous studies confirm that there has been a relatively low uptake of EC by SMEs

in Kenya

While there are many studies regarding EC adoption in developed countries, there is little empirical evidence to explain the factors affecting EC in developing countries Similarly, empirical research regarding the factors affecting EC adoption by SMEs is quite limited This study, therefore, seeks to explore the factors affecting EC adoption among SMEs in Kenya

1.3 The objectives of the study

The main objective of the study is to describe the factors that affect the adoption of EC among SMEs in Kenya

1.4 Research Question

What are the factors affecting the adoption of EC by SMEs in Kenya?

in Kenya Finally, the section concludes by presenting the theoretical background (TOE) that has been used to guide this study

2.1 EC Definition

The term EC is broadly used to denote various meanings, very often depending on the context for which it intends to serve Presently, there is no universally agreed definition of EC it has been defined in so many ways The following are some definitions offered by different kind of literatures Kutz (2015) defines EC as the electronic where powerful ICT systems and a globally standardized network infrastructure are used to exchange goods and services between organizations and individuals According to Turban et al (2015), if EC was limited to only commerce activities, its usage would be fairly narrow Hence, EC is not only referred to as selling and buying EC online but conducting all types of business activities using the internet, intranet, and extranet These activities include servicing customers, collaborating with business partners, delivering e-learning, and conducting electronic transactions within an organization Huy and Filiatrault (2006) describe EC as any business or economic activity that makes use of ICT-based applications to facilitate the transaction among businesses, business-to-business (B2B), individuals, customers to customers (C2C), or business to customers (B2C)

For the purposes of his study, EC has been viewed as a concept that refers to any type of transaction or information exchange through the internet, within the context of performing any business electronically

2.2 Types and Business Models of EC

There are several possible EC models for business These models can be interrelated or combined; it all depends on the nature and characteristics of the market

The classification of EC follows the nature of transactions and relationships between the participants Hence, EC can be classified into six major categories (Kang et.al 2016; Turban et al., 2015; Kuz 2016) Business-to-Business (B2B) consists of transactions between business entities or organizations Business-to-Consumers (B2C) include retail transactions of products

or services from business to individual customers Consumer-to-Business (C2B) consists of EC

in which individuals use the Internet to sell products or services to businesses or organizations Intra-business EC category refers to transactions among various organizational departments and individuals Business-to-Employees (B2E) refers to the delivery of services, information, or products from organizations to their employees Consumer-to-Consumer (C2C) category is where individual consumers sell or buy from other consumers The type of EC that this study focused on is Business-to-Consumers (B2C) where retail businesses deal directly with consumers

2.3 Motivations and drivers for EC Adoption

There are many factors underlying EC adoption According to Turban et al (2016), the drivers

of EC can be divided into many categories depending on the industry, company, and application involved A good number of literatures suggests studies on motivation to EC and usage and adoption There is no agreement on a standard framework that can be applied in all countries, companies simply by the fact that these operate in different dynamics, environments, and socio-cultures (Aljowaidi, 2015) A good number of literatures have examined the motivations leading the companies to use and adoption of EC A study done by Aljowaidi (2015) investigated the factors motivating enterprises to adopt EC The table below (Table 1) summarizes the motivating factors in the context of different SMEs across various developing countries

Egypt

Marketing, competition, and improving business performance

marketing, reducing operation costs, improving business performance

South American Increased sales, improving customer

service, and improving business efficiency were important drivers for

EC usage

company image motivated Thailand ‘s organizations to adopt B2B EC Table 1: Motivating factors to EC across SMEs in different developing countries

2.4 The Benefits of EC

The benefits of EC have been largely discussed by many researchers and they commonly agree

on the positive impact that EC brings to companies According to Turban et al (2016), in comparison to a typical brick and mortar store, EC brings numerous advantages and benefits that are rarely found in traditional stores Furthermore, it’s widely recognized that EC could play an imperative role in organizational performance, as it contributes to creating new business opportunities and enables enterprises to perform their tasks efficiently and effectively It also enables enterprises to successfully compete in the market Notably, EC has transformed business processes in many ways and brought positive impacts to many enterprises Thus, these positive impacts of EC are not only advantageous for businesses but also benefit consumers The literature proposes an extensive set of benefits for enterprises that opt to adopt and

implement EC systems Moreover, Prior studies hold a common view that EC along with other technological innovations have a positive impact on a business based on the benefits they bring

to a firm (Abukar et al., 2018) Hence, different researchers identified a range of areas in which

EC can bring benefits as outlined below (Zhang, 2010; Turban et al (2016); Susan et al., 2020; Kuz, 2016; Abukar et al., 2018; Wanjau, 2012; Achiando, 2019; Wachira et al, 2014; Kanyaru and Kyalo, 2015):

• Supply chain improvements

• Easy information exchange

• Limitless geographical location

• Accessibility

• Flexibility

• Increased sales and revenues

Another study by Kartiwi et al distinguished the benefits of EC into tangible

and intangible benefits as follows: the tangible benefits relating to increased sales, gain of new customers, cost reduction, among others Whereas the intangible benefits of EC relate to efficiency, improved customer relations etc (Kartiwi et al., 2018)

When it comes to EC benefits in SMEs Turban et al (2016), the use of EC brings enormous advantages that have a great impact on SMEs’ business activities EC has an important influence on SMEs such as providing increased competition on a global scale, business expansion, cost reduction, among others However, SMEs find it difficult to reap the benefits mentioned above as they face many challenges in adopting EC in their business

2.5 Challenges of EC

Although the benefits of EC have proved to offer great advantages and positive outcomes to enterprises, the adoption of EC encounters several barriers and challenges that continue to impede the success and growth of the adoption and application of EC Some of these challenges

as mentioned by Turban et al (2016), are grouped into technical and managerial categories The technical challenges of EC, in order of their importance, are:

• Security, adequate infrastructure, virtualization, back-end systems integration

• More intelligent software, cloud computing, data warehousing and mining,

• Scalability, and content distribution

The managerial challenges of EC; Turban et al (2016) are as follows:

• Justification, budgets,

• Project deadlines, keeping up with technology,

• Privacy issues, unrealistic management expectations,

• Training, reaching new customers,

• Improving customer ordering services, and finding qualified EC employees

Recognizing the challenges of EC in SMEs; Several studies have attempted to categorize EC barriers in various literature Jebur et al (2012) identified four categories; technical, non-technical, internal, and external barriers (Jebur et al., 2012) Other inhibitors that were discussed

by Lacka et al were grouped into two main categories: namely internal and external barriers Internal challenges are viewed as the ones within the enterprise and that can be resolved internally as they are within the control of the enterprise These are typically the organizational culture, lack of resources, managers’, and owners’ attitude towards EC Whereas external barriers lie outside of the immediate attention and control of the enterprise These barriers include lack of infrastructural facilities, lack of financial resources, and governmental support

in terms of regulations (Lacka et al., 2014) On the other hand, other researchers suggest that E-readiness can be classified as one barrier that englobes all other barriers to EC adoption in developing countries White et al., 2014) E-readiness is seen as the preparedness of a society with the necessary physical infrastructure which has integrated current ICTs throughout businesses and government (Waema and Kashorda, 2011)

Another study conducted by Medhi indicated that the barriers of EC adoption among SMEs is due to but not limited to, high cost of EC implementation, lack of technical skills and IT knowledge among employees, lack of awareness of the benefits EC can provide, environmental issues, lack of security and lack of telecommunication infrastructure Wachira (2014) identified inhibitors to the adoption of EC by SMEs to lack IT knowledge, EC benefits awareness and resources, technology concerns, and limited government policies and regulations

Regarding the barriers to EC adoption among SMEs in Kenya, Akinnusi (2017), found that lack

of inadequate infrastructures, lack of government ICT strategies, cultural and socio-economic issues, lack of internet security, and limited use of the internet are the most pivotal barriers that hinder the adoption of EC

2.6 SMEs and EC adoption in Kenya

The criteria of SMEs and their definitions vary from country to country Different definitions include various parameters and components such as the number of enterprise employees and financial investments or assets In the case of Kenya, SMEs comprise both formal and informal businesses where the majority operates informally This research covers only business registered and operating formally in Kenya Henceforth, the Government of Kenya (GoK) indicates that the classification of enterprises is primarily based on the number of employees engaged by firms and their turnover SMEs are therefore firms with between 1-99 employees whereby the total assets and the registered capital of the enterprise do not exceed Kshs 30 million (UNDP, 2015)

Kenya has taken several steps to EC adoption by more Small and Medium businesses; over the last few years; not only EC has changed the lives of individuals but also how companies carry out their activities (Wanjau, Macharia, & Ayodo, 2012) Nevertheless, there is still a relatively slow uptake by SMEs in Kenya, hence SMEs have failed to attain the full benefits inherent in the use of EC According to Euromonitor International, EC recorded a tremendous growth in

2019 with its supplementing store-based retailing and direct selling This growth was mainly due to the rapid rise in internet penetration and increased mobile subscriptions (Euromonitor International, 2020)

2.7 Reviewing EC Adoption Factors in SMEs

EC adoption factors can be seen as those that support or inhibit the adoption of EC (Shemi, 2012) Different researches have suggested varied factors that influence EC adoption in different contexts and enterprises As a result, numerous researchers have explored the factors influencing EC adoption and many theories have been enumerated to explain the factors behind

EC adoption by companies (Adnan, 2017)

For the purpose of this study, this review adopted the most commonly used theoretical framework of EC adoption introduced by Tornatzky and Fleischer (1990), which is the technology–organization–environment framework (TOE)

Moreover, this three-dimensional framework has been used to assess the factors influencing EC adoption in SMEs in Kenya According to Tornatzky and Fleischer, the procedure by which a business adopts and implements IT innovation is influenced by the technological context, the organizational context, and the environmental context (Tornatzky and Fleischer, 1990) The technological context uncovers the external and internal technological factors relevant to the business

The organizational context relates to the characteristics of an organization that supports the adoption of technological innovation, such as firm size, organizational structure, managerial structure, human resource competencies, and resources The environmental context uncovers other components which include, competitors, suppliers, government and regulations, the arena

in which the organization deals with competitors, business partners, the government, and regulations (Nazir and Zhu, 2018; Awa et al., 2015; Rahayu and Day 2017)

2.8 Technological Factors

Nazir and Zhu (2018) refer to EC to the adoption of innovation using different IT systems and

within the organizations Thus, it refers to the technologies available within organizations and

how technological contextual factors affect the adoption of technologies in businesses Rahayu

and Day (2015) further note that the technological context relates to those facets such as

perceived benefit, compatibility, and cost of technology, that influence the adoption of EC

technology The perceived benefit includes the potential benefits that EC will bring to the

organization (Tiago & Maria, 2010) The better management understands the perceived

benefits, the luckier some resources such as technological, financial will be allocated to

adopting EC technology On the other hand, Ruhayu & Day (2015) explain that compatibility

refers to the level in which EC is suitable for technology infrastructure, work practices, culture,

etc that already exist in the organization

2.9 Organizational Factors

There are numerous factors related to the organizational context that influence EC adoption

According to Tornatzky and Fleischer (1990), organizational factors refer to the nature of an

organization and its resources Also, it refers to the structure of the business, size of the

business, resources, and technology readiness Technology readiness refers to what extent the

technology infrastructure, relevant systems, and technical skills in business can support EC

adoption (Zhu et al., 2006) Technology infrastructure and IT resources are the major

components of technology The factors such as organization characteristics (management, size

& innovation), financial resources, top management, the availability of IT expertise and IT

infrastructure are the major factors that affect the ability of companies to adopt EC technology

(Kurnia et al., 2015) The more top management support is involved in communicating the

awareness and advantages of EC the more the use of EC technology across an enterprise

However, SMEs are generally slower in adopting technological innovations due to their limited

financial resources which eventually affect almost any aspect of EC adoption

2.10 Environmental Factors

Kurnia (2015) suggests that factors relating to the environmental context in developing

countries play an important role than factors concerning organizational and technological

context According to Ruhayu & Day (2015), environmental factors relate to the external

influences that can directly or indirectly affect EC adoption These influences include suppliers,

competitors, infrastructure, government regulations, etc According to Aljowaidi (2015), prior

studies in IT adoption depict that the external pressure is one of the three best predictors of IT

innovation adoption by organizations (Aljowaidi, 2015) For instance, when competitors start

to adopt EC technology, other organizations are put under pressure to adopt EC innovation The

other major component affecting EC adoption is the government Kurnia (2015) suggests that

government support plays a critical role in influencing organizations to adopt technologies By

creating a favorable environment, legal protection for EC activities, privacy, security measures,

and ICT infrastructure, governments can strongly influence the adoption of EC

The figure below (figure 1) presents a conceptual model of the TOE framework:

Figure 1: Conceptual model for TOE framework

IT expertise

IT infrastructure

Environmental Factor Suppliers

Competitors Infrastructure Government regulations

EC adoption

3 Research Design and Methods

3.1 Qualitative Study

The research methodology is the most crucial part of a study as it determines the quality of the data the researcher collects Hence, to choose the most appropriate research approach, the very first step should focus on the problem definition (Wallén, 2012) For this research, a qualitative approach was most suitable, as the objective of this study was to gain insights and a deeper understanding of the factors affecting EC adoption in Kenya According to Wallén, (2012) qualitative method is used to explore a phenomenon, to understand a given research problem

or topic from the perspectives of the population it involves Hence, the qualitative method was expected to respond to the phenomenon behind the low uptake of EC adoption and the factors influencing EC among SMEs in Kenya

3.2 Data Collection

To collect and gather the views and experiences from respondents, interviews were conducted with four business managers and executives from four retail companies in Kenya The qualitative study collected empirical data from four retail SMEs that have functional EC retail enterprises The participants consisted of managers/CEO and owners

For this study, semi-structured interviews were the major data collection method used to identify the factors affecting EC adoption among SMEs in Kenya According to Denscombe (2014), the main goal of a semi-structured interview is that it offers flexibility for the respondents to elaborate on their ideas (Denscombe, 2014)

Given the geographical distance, the researcher conducted interviews remotely with the help

of WhatsApp call This communication tool was chosen due to its popularity in Kenya In conducting semi-structured interviews, a researcher used a predetermined set of questions but could ask follow-up questions as needed for clarification (Doody & Noonan, 2013) The researcher, therefore, prepared a set of questions in advance before the actual interview took place (Appendix A) The list of these questions was deliberately pre-designed to cover the leading topic areas of this study and hopefully to answer the research question The interviews took place at the participant's chosen times and dates All interview appointments were set up via WhatsApp text and Facebook Messenger Before and during the interview, the researcher highly valued informants’ conveniences which implied the conduct of the interview conversationally and openly English was the main language used for interviews as all informants are based in Kenya As a rule of thumb, interviews were scheduled to take 30 minutes; however, this varied depending on each respondent’s approach and on how much the respondents were willing to share Each interview took relatively 20 to 35 minutes

3.3 Selection of Organization

The target organization for this study was small and medium-sized retailers within the Kenyan retail businesses The study population comprised of formal SMEs in Nairobi SMEs included four different retail businesses extensively utilizing EC to conduct their business activities Moreover, business owners, managers, and CEOs were selected to complete the interviews as they can provide an organization-wide view

3.4 Participants Presentation

As previously mentioned, four retail SMEs in Nairobi, Kenya were identified Selecting participants in Nairobi was a practical approach and helpful as a considerable number of companies are mostly operating from Nairobi All participants had different backgrounds, the manager of company S has a background in journalism and is MBA graduated The CEO/Owner of firm E is a businessman and the founder of this firm The owner of firm F is a physiologist whose initial idea was to make a platform through which couples could buy flowers

to each after they had therapy sections The IT manager/CEO of firm B has a background in IT studied abroad and wanted to implement a website/App to order food and beverage in Kenya

All four firms are currently involved in the use of EC The first company named E is using EC

in electronic and communication retail, the second company S is using EC in supermarket products, the third company F is using EC in selling flowers/chocolates and the fourth company

is using EC in Food and beverage The size of employees in the companies ranges from five to fifteen with the owners and managers included In table 2 below, all four companies have been presented:

of employees

EC tool used

Interviewee

App and Social Media

Manager

and Social Media

IT manager/CEO

Table 2: Company presentation

3.5 Data Analysis

There are many different approaches to analyzing data, the approach is guided by the aim of the study Patton (2002) indicates four things to consider while analyzing data Namely, to arrange data, organize data, reduce data through categorization, and finally uncover emerging patterns and themes Miles and Huberman further suggest an interactive approach to analyzing data which involves data collection, data condensation, data display, and conclusion drawing and verification (Miles et al., 2014)