ADOPTION OF ELECTRONIC COMMERCE AND PERFORMANCE OF SOLAR BUSINESS ENTERPRISES IN NAIROBI CITY COUNTY, KENYA
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Date
2025-09
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THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
Abstract
In developed countries, electronic commerce is widely used in business operations, but research shows that in developing countries, it is not. Thus, rising nation enterprises have faced many obstacles to growth. The study investigated the effect of adoption of e-commerce on the performance of solar business enterprises in Nairobi City and proposed strategies to enhance the competitiveness and sustainability of these businesses in the evolving digital landscape. Specifically, the study looked at how dynamic pricing, supply chain, customer engagement, product quality, and shipping and returns affected the performance of solar business enterprises in Nairobi City County. The study was guided by the Unified Theory of Acceptance and Use of Technology (UTAUT), dynamic capabilities theory, the Transactional Cost Theory and Technological Organization Theory. The research applied a descriptive cross-sectional design and positivism philosophy. The target population comprised of 952 licensed solar photovoltaic (PV) contractors in Nairobi City County. From this population, a sample size of 282 was obtained using Yamane’s formula for sample size determination and simple random sampling method. Data was collected using structured questionnaires and analyzed using quantitative methods of data analysis. Both descriptive and inferential analysis was done with the help of the statistical package for social sciences version 29. Descriptive statistics were summarized into frequencies, percentages, means, and standard deviation and presented using frequency tables, bar graphs, and pie charts. On the other hand, inferential analysis was done using the correlation and multiple linear regression analysis. From the findings, it was noted that dynamic pricing (r=0.864, β= 0.537, p<0.05), supply chain (r=0.872, β= 0.344, p<0.05), customer engagement (r=0.773, β= 0.285, p<0.05), product quality (r=0.844, β= 0.045, p<0.05), and shipping and returns (r=0.879, β= 0.437, p<0.05) had a statistically and significant effect on the performance of solar business enterprises in Nairobi County. It was therefore recommended that solar business owners be trained on effective dynamic pricing strategies, particularly competitor-based and time-based pricing, to improve revenue outcomes. It also emphasizes the need for supply chain optimization through government-supported training and adoption of digital inventory and logistics tools. Enhancing customer engagement via CRM systems and digital platforms is critical, alongside ensuring high product quality through strict adherence to KEBS standards and manufacturer accountability. Lastly, improving shipping and returns processes with better logistics partnerships and clear customer communication can significantly boost operational efficiency and customer satisfaction.
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