Factors Influencing Adoption Of Digital Online Marketing: A Case Of Medium Enterprises In Nairobi Central Business District

Abstract

SMEs account for around two thirds of total employment, and half of the turnover in the Kenyan business sector. However the sector faces challenges that make it impractical for it to realize its full potential and deliver to the government expectations. The aim of this research was to assess the factors influencing adoption of digital online marketing by medium enterprises. Specifically, the study looked at the effect of IT infrastructure, IT personnel competence, management strategies and organizational culture, and business ownership on the adoption of digital online marketing. ICT adoption models guided the study. The study was conducted in Nairobi’s central business district using empirical research study with a target population of 14,266 medium enterprises. The sample population was stratified depending on the industry in which they operate and a sample of 389 selected to represent the target population. Data was collected through use of semi structured and open ended questionnaires. The validity of the questionnaires was improved by seeking expert advice from the supervisors in the evaluation of the instrument. The collected data was edited, coded, classified, tabulated and presented in frequency tables, pie charts, bar graphs using frequencies and percentages, chi-square tests and P-value tables. The findings revealed IT infrastructure was statistically a significant determinant of adoption of digital online marketing at 95% confidence level; IT personnel competence was found to be a significant determinant of adoption of digital online marketing; the type of business ownership was not a significant determinant of adoption of digital online marketing; management strategies and organizational culture were a significant determinant of adoption of digital online marketing. Based on the findings, the research concludes that IT infrastructure affects the adoption of digital online marketing; competent IT personnel leads to the success of digital online marketing; any type of business ownership can adopt digital online marketing; and the management strategies and organizational culture in place in a medium enterprise guides the adoption of digital online marketing. The research recommends that medium enterprises should acquire and sustain stable IT infrastructure; they should consider hiring competent IT personnel who can fast tract the implementation and use of digital online marketing; any medium enterprise should utilize the technology regardless of the type of ownership; and the management should embrace the adoption of digital online marketing and develop standard operating procedures for its use since they are the main initiators of new technologies. Adoption of digital online marketing shall facilitate medium enterprises to market their products and services to the large population which is currently accessing the Internet. This will in turn solve the problem of limited market access and therefore lower the mortality rate of medium enterprises. The existence of the medium enterprises shall subsequently contribute positively to the Kenyan economy. A similar study could be done with a target population based in a different urban setup to validate the findings of the study, in addition, another study could be carried out to establish the acceptability and use of digital online marketing by small and medium enterprises and lastly, a study could be done to establish the specific areas of IT whose personnel competence is crucial for the adoption of digital online marketing.