CONTRIBUTION OF TECHNOLOGY TO THE PERFORMANCE OF ...

CONTRIBUTION OF TECHNOLOGY TO THE

PERFORMANCE OF AGRIBUSINESS FIRMS IN KENYA:

A CASE OF SASINI LIMITED

BY

MWERU SHARON

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2016

CONTRIBUTION OF TECHNOLOGY TO THE

PERFORMANCE OF AGRIBUSINESS FIRMS IN KENYA:

A CASE OF SASINI LIMITED

BY

MWERU SHARON

A Research Project Report Presented to the Chandaria School of

Business in Partial Fulfillment of the Requirement for the Degree of

Master of Business Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2016

ii

DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any

other college, institution or university other than the United States International

University- Africa in Nairobi for academic credit.

Signed: Date:

Mweru Sharon (ID: 632065)

This project proposal has been presented for examination with my approval as the

appointed supervisor.

Signed: Date:

Dr. Zachary Mosoti

Signed: Date:

Dean, Chandaria School of Business

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COPYRIGHT

All rights reserved; no part of this work may be reproduced, stored in a retrieval system

or transmitted in any form or by any means, electronic, mechanical, photocopying,

recording or otherwise without the express written authorization from the writer.

© 2016 by Mweru Sharon

iv

ABSTRACT

The purpose of this study was to establish the contribution of technology to the

performance of Sasini Limited. The study was guided by the following research

questions: How has the use of technology influenced marketing at Sasini Limited? Is the

use of technology a determinant to procurement as Sasini Limited? What is the effect of

technology to trading at Sasini Limited? The findings are of significance to the

agribusiness industry, policy makers, researchers and academicians. The survey targeted

Sasini Limited Head Office staff based at Sasini House, Loita Street. This research was

conducted between February 2016 and May 2016.

Descriptive research design was adopted in the study. The target population under the

study was 100 employees were picked based on stratified random sampling given the

nature of staff. Structured questionnaire was used as the data collection instrument. Data

analysis was done with the help of Statistical Package for Social Sciences (SPSS)

included one way ANOVA and frequency distribution given that the study incorporated

the use of descriptive research design. The results of the study were presented in the form

of graphs, charts and figures.

In relation to the influence of technology on marketing. The study results revealed that

technology positively by assisting in reducing marketing cybercrime; helps in setting

appropriate prices; promote faster product distribution; and is used as a promotional tool.

The study has sufficiently demonstrated the influence of technology on procurement, the

study established that technology positively influence procurement processes at Sasini

Limited, majority confirmed that technology ease procurement logistics; facilitate online

search for supplies; used as an inventory tool; used to monitor procurement systems; and

enhance flexibility through e-procurement.

The survey has also illustrated the influence of technology on trading, majority of the

respondents indicated that technology positively influences trading to great extent.

Technology enhances customer relationship to great extent. Similar high score was

recorded for improvement of operational efficiency; promotion of trading innovation; and

increase efficiency.

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The study concludes that technology positively influence marketing. This influence

realized given that technology is used to reduce marketing cybercrime; helps in setting

appropriate prices; promote faster product distribution; and is used as a promotional tool.

The study further deduces that technology positively influence procurement processes at

Sasini Limited. The positive influence is achieved since the adopted technology ease

procurement logistics; facilitate online search for supplies; used as an inventory tool; used

to monitor procurement systems ; and enhance flexibility through e-procurement.

Finally, the study concludes that technology positively influence trading at Sasini

Limited. The study affirms that technology enhances customer relationship; improve

operational efficiency; promote of trading innovation; and increase efficiency.

The study therefore recommends that since technology helps in reducing marketing

crime, setting appropriate prices, promotes faster product distribution and is used as

promotional tool therefore it is important for agribusiness firms like Sasini Limited to

invest in sophisticated technology so as to reduce costs associated with cybercrime and

related effects and instead maximize returns generated through marketing.

Procurement has been made simpler with the modernization of the industry therefore

organizations should continue to invest in appropriate technologies to ensure real time

processing and business transactions to reduce the cost of doing businesses.

The study recommends strategic adoption of technology by the agribusiness firms to

strengthen the management of existing customer relations, create flexibility in operations,

continuously invest in innovation and above all explore trade related activities so as to

increase revenue.

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ACKNOWLEDGEMENT

I would like to express my deepest appreciation to all those who made it possible for the

completion of the project even though their names many not be enumerated. To all my

family, Dr. Mosoti, friends and others who in one way or another shared their support

either morally, financially I just want to say thank you.

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DEDICATION

I humbly dedicate this project to Sasini Limited for their assistance and cooperation

during the study and to my family for their unconditional love and support. The

Almighty God for the strength to complete it.

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TABLE OF CONTENTS

DECLARATION................................................................................................................ ii

COPYRIGHT .................................................................................................................... iii

ABSTRACT ....................................................................................................................... iv

ACKNOWLEDGEMENT ................................................................................................ vi

DEDICATION.................................................................................................................. vii

TABLE OF CONTENTS ............................................................................................... viii

LIST OF ABBREVIATIONS ........................................................................................... x

LIST OF TABLES ............................................................................................................ xi

CHAPTER ONE ................................................................................................................ 1

1.0 INTRODUCTION........................................................................................................ 1

1.1 Background of the Problem ........................................................................................... 1

1.2 Statement of the Problem ............................................................................................... 5

1.3 Purpose of the Study ...................................................................................................... 5

1.4 Research Questions ........................................................................................................ 6

1.5 Significance of the Study ............................................................................................... 6

1.6 Scope of the Study ......................................................................................................... 6

1.7 Definition of Terms........................................................................................................ 7

1.8 Chapter Summary .......................................................................................................... 7

CHAPTER TWO ............................................................................................................... 8

2.0 LITERATURE REVIEW ........................................................................................... 8

2.1 Introduction .................................................................................................................... 8

2.2 Influence of Technology on Marketing ......................................................................... 8

2.3 Technology as a Determinant to Procurement ............................................................. 16

2.4 Effect of Technology on Trading ................................................................................. 20

2.5 Chapter Summary ........................................................................................................ 24

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CHAPTER THREE ......................................................................................................... 25

3.0 RESEARCH METHODOLOGY ............................................................................. 25

3.1 Introduction .................................................................................................................. 25

3.2 Research Design........................................................................................................... 25

3.3 Population and Sampling Design ................................................................................. 25

3.4 Data Collection Methods ............................................................................................. 27

3.5 Research Procedures .................................................................................................... 28

3.6 Data Analysis Methods ................................................................................................ 29

3.7 Chapter Summary ........................................................................................................ 29

CHAPTER FOUR ............................................................................................................ 30

4.0 RESULTS AND FINDINGS ..................................................................................... 30

4.1 Introduction .................................................................................................................. 30

4.2 General Information ..................................................................................................... 30

4.3 Influence of Technology on Marketing ....................................................................... 32

4.4 Technology as a Determinant to Procurement ............................................................. 37

4.5 Effect of Technology on Trading ................................................................................. 40

4.6 Chapter Summary ........................................................................................................ 45

CHAPTER FIVE ............................................................................................................. 46

5.0 DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ...................... 46

5.1 Introduction .................................................................................................................. 46

5.2 Summary ...................................................................................................................... 46

5.3 Discussions .................................................................................................................. 47

5.4 Conclusions .................................................................................................................. 55

5.5 Recommendations ........................................................................................................ 56

REFERENCES ................................................................................................................. 58

APPENDICES .................................................................................................................. 64

Appendix I: Cover Letter ................................................................................................... 64

Appendix II: Questionnaire................................................................................................ 65

x

LIST OF ABBREVIATIONS

CIPS Chartered Institute of Procurement & Supply

FAO Food and Agriculture Organization

GDP Gross Domestic Product

SPSS Statistical Package for Social Sciences

US United States

xi

LIST OF TABLES

Table 3. 1: Population Distribution .................................................................................... 26

Table 3. 2: Sample Size Distribution ................................................................................ 27

Table 4. 1: Work Department of the Respondents ............................................................ 31

Table 4. 2: Years Worked by the Respondents ................................................................. 31

Table 4. 3: Education Level of Respondents .................................................................... 32

Table 4. 4: Effects of Technology on Marketing .............................................................. 33

Table 4.5: One Way Analysis of Variance (Technology versus Marketing) .................... 33

Table 4.6: Correlation between Technology and Marketing ............................................ 33

Table 4.7: One-Sample Statistics .................................................................................... 34

Table 4.8: One-Sample Test ............................................................................................ 34

Table 4.9: Frequency Distribution (Marketing) .............................................................. 35

Table 4.10: Model Summary (Marketing) ........................................................................ 35

Table 4.11: ANOVA (Marketing).................................................................................... 35

Table 4.12: Coefficientsa (Marketing) ............................................................................... 36

Table 4.13: Effects of Technology on Procurement ........................................................ 37

Table 4.14: One Way Analysis of Variance (Technology versus Procurement) .............. 37

Table 4.15: One-Sample Statistics (Technology versus Procurement) ............................ 37

Table 4.16: One-Sample Test (Technology versus Procurement) .................................... 38

Table 4.17: Frequency Distribution (Trading) ................................................................... 38

Table 4.18: Correlation Analysis between Technology and Procurement ....................... 39

Table 4.19: Model Summary (Procurement) .................................................................... 39

Table 4.20: ANOVAa (Procurement) ............................................................................... 40

Table 4.21: Coefficientsa (Procurement) ........................................................................... 40

Table 4.22: Effects of Technology on Trading ................................................................. 41

Table 4.23: One Way Analysis of Variance (Technology versus Trading) ...................... 41

Table 4.24: One-Sample Statistics (Technology versus Trading) ................................... 41

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Table 4.25: One-Sample Test (Technology versus Trading) ........................................... 41

Table 4.26: Frequency Distribution (Trading) ................................................................... 43

Table 4.27 : Correlation Analysis of Technology and Trading ......................................... 43

Table 4.28: Model Summary (Trading) ............................................................................. 44

Table 4.29: ANOVAa (Trading) ......................................................................................... 44

Table 4.30: Coefficientsa (Trading) .................................................................................... 44

xiii

LIST OF FIGURES

Figure 4. 1 Gender of Respondents ................................................................................ 30

Figure 4. 2 Salary Range of the Respondents ................................................................ 32

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Problem

Technology refers to a process designed to achieve a given action while reducing the

uncertainty in the cause-effect relationship involved in achieving a desired outcome

(Moore, 2002). Technology has become a global tool often used by individuals,

organizations, governments and intergovernmental organizations for personal or official

activities. Its application cut across all fields of human endeavour like medicine,

commerce, engineering, architecture, education, library services, and agriculture. It is

important to note that technology aids in handling, acquiring, processing, storing,

disseminating information, development of new products and services; improvement of

management and operation efficiencies (Afolabi, 2012).

Technology plays a leading role in agribusiness. For instance a study by Abraham (2007)

demonstrated that mobile phone as a form of technology aids in improving the efficiency

of agricultural fish markets in India. The fishermen who participated in the survey ranked

the mobile phone in third place among the technical advances that have assisted their

development, after mechanization and the improvement of transport infrastructure. More

than 80% of fish wholesalers, fishmongers and haulers acknowledge that the mobile

phone has helped to reduce price volatility and differentials between markets. That is,

information relayed through the mobile phones enable fishermen to land on the docks

where the market price is highest.

New capabilities which are brought about by technology are both absorptive and

innovative and have central importance in almost all economic sectors as they are the key

elements in the change of the key economic system (Malerba & Nelson, 2010). They are

necessary in order to adopt, adapt and modify technologies developed elsewhere,

introduce modifications and incremental innovations and eventually generate totally new

products and processes (Miller & Morris, 1999). Studies have shown that innovative

technological capability building is a key to technological and economic progress of

countries throughout history. According to Food and Agricultural Organization [FAO]

(2010), such capabilities are evident in the Nigerian cassava processing industry which

aids in increasing its shelf life, enhance its nutritional value, upgrade cassava traditional

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food technologies, as well as to develop value-added products with export potential which

could contribute considerably to transforming the economies. The cassava processing

industry entails cassava processors such as flour mill companies, starch companies;

cassava equipment and machineries fabricators that are involved in medium-scale

motorized cassava grater, hammer milling machine, cassava mash and gaari shifter, frying

system; and food processors that are involved in bread making and other confectioneries.

Notwithstanding, since the 1980s, Nigeria has remained the global leader in cassava

production with an annual production of 45 million metric tonnes (FAO, 2011). While

Nigeria is regarded as the largest producer of cassava however, output per hectare

remains one of the lowest in the world principally due to poor technological development

(Odebode 2008; Ogundari 2010). Cassava production like other crops in Nigeria is mostly

driven by land area expansion rather than productivity associated with improved

technology (IFPRI, 2010). Dynamic and sustainable approach to cassava development has

remained great concern to Nigerian government and policy makers (IFPRI, 2010).

Moreover, the utilization of cassava has largely explored traditional technologies for

processing of its roots into human food such as gari, fufu, and flour (NEPAD, 2006).

There is more than 40 million tonnes of demand for other products of cassava - starches

for the textile, pharmaceutical, pulp and paper, adhesives for packaging industries and

flour for bakery and confectionery industries (RMRDC, 2004).

The first publication on agribusiness came around the mid-20th century. Agribusiness

came as a estimate of check determine by Davis and Goldberg at the Harvard Interest

Tutor (Davis & Goldberg, 1957). At the origin, studies on agribusinesses punctilious on

the topic of agronomy in assistance the brief farmers (Goldsmith, 1985) and on the

perspective fish for of agribusinesses in the Board plans (Goldberg, 1965). Goldberg

constant dominion turn defining the charge of agronomy connected with top placing on

the role of multinational companies (Goldberg, 1981). The petition husbandry is interest

aberrant to assail integrity outlander a recreation husbandry operation to a multinational

company. The USDA Pecuniary Inhibition uses such clarity to pep a plank and fiber

customs: “Cultivation comprises the commercial activities of the farms and the firms

meander stock, liveliness, and impress wager agricultural commodities into final market

for distribution to U.S. and foreign consumers. Agribusiness includes almost money-

making activity drift supports raise performance and the suiting of raw raise products to

3

usefulness things for suitcase: requisites improve, horse-apples pleasure, farming itself,

food processing and manufacturing, transportation, wholesale and retail trade, distribution

of food and apparel, and eating establishments. The circulation and relevancy generated at

bottom agribusiness is the spread fitting and jobs provided by these firms.” (Goldberg,

1965, p.230).

According to FAO (1997), agribusiness is a term used to mean farming; plus all the other

industries and services that constitute the supply chain from farm through processing,

wholesaling and retailing to the consumer (from farm to fork in the case of food

products). In bygone grow older the on stand-by agronomy is in the matter of regularly

euphemistic pre-owned to portray speculator manoeuvres meander strive a corporate

structure, including many digress have an international scope. Historically, multinational

enterprises in the board traditions lean back swelling voluminous be partial components a

do away with in the upright enter pandect distance from curry favour with

businesswoman to through client and conveyance on those functions of input technology,

agriculture, have an effect, convention, storage, processing, and delivery that either are

not performed at all or ineffectively performed by others in the total vertical food system

we call ‘agribusiness’ (Goldberg, 1968).

The share of agriculture in total employment in developing countries constitutes 53% of

the total workforce (Aksoy, 2012). In Kenya agriculture, currently contributes 24% of the

GDP directly, and 27% indirectly (Government of Kenya, 2012). Agricultural Sector

Development Strategy (ASDS) revealed that the sector accounts for 65% of Kenya’s total

exports; provides more than 18% of formal employment; 70% of informal employment in

the rural areas and provides a livelihood for close to 80% of the Kenyan population which

the government attributes the uptake of technology in farming (Ministry of Agriculture,

2010). A study by Wouterse (2009) indicated that growth in agriculture and improved

rural incomes has significant and direct impact in reducing overall poverty. The sector

provides raw materials to the manufacturing sector and stimulates large indirect growth

effects in non-farm income and employment (Meijerink & Roza, 2010).

In addition, agriculture is one of the key sectors to deliver the 10 per cent annual

economic growth rate envisaged under the economic pillar of the Kenya Vision 2030; this

milestone is attributed to the adoption of technology by the government (Republic of

4

Kenya, 2008). It further emphasizes that to achieve this growth, transforming smallholder

agriculture from subsistence to an innovative, commercially oriented and modern

agricultural sector is critical. The strategies to make smallholders access markets include

catalyzing the formation of producer and processor groups for acquiring information,

inputs and accessing markets; and market promotion and development (Republic of

Kenya, 2008).

Sasini’s incredible history is peppered with adventure, innovation and resourcefulness.

From a single farm coffee operation to a multiproduct, multi-locational leading public

agribusiness, the history of Sasini has tremendous parallels with the History of Kenya,

Sasini’s motherland. Our historical backdrop started in 1952, in the thing that might have

been at that point known as Kenya Colony, eleven a long time former should Kenya’s

autonomy from british pioneer manage in 1963. Toward the time, Sasini might have been

initially joined similarly as Doondu Estates Ltd, with particular case espresso ranch in the

delightful national high countries from claiming Kenya for what is known as Kiambu

locale (Sasini Limited, 2016).

Understanding that development might have been those main option, those youthful

espresso developing agency went ahead with obtain three All the more espresso ranches

in the same region for Kiambu region clinched alongside 1959. Development requested

progressions in the company’s money related sourcing choices Furthermore because of

the opposition to this demand, the organization changed over from a privately owned

business to a state funded shares of the organization over 1960. This might have been an

incredible defining moment clinched alongside its enterprise of Growth What's more

broadening Likewise Sasini is indisputably a standout amongst the most seasoned

organizations in Kenya with a chance to be recorded on the share trading system. In the

correct soul for a bold pioneer, Sasini understood that agricola dangers need aid best

figured out how through result broadening. It might have been in this soul that Sasini

entered those tea pack sub-sector toward procuring a noteworthy stake clinched alongside

its tea sack operation known as Kipkebe Ltd in the great break valley area from claiming

kenya to 1964 (Sasini Limited, 2016).

Sasini thusly raised its stake to 100% to Kipkebe restricted done 1965. Extension

proceeded with the procurement from claiming extra espresso investment through buy of

5

huge lion's share shareholding in Mweiga Estates Ltd, a espresso cultivating operation

that required vast espresso ranches in the good country espresso zones of the mount

Kenya district clinched alongside Kenya’s national high countries. To a significant

number years, Sasini worked its benefits of the business concerning illustration Sasini tea

pack and espresso constrained for stress on its two fundamental lead results in the type

about tea pack is more so referred to espresso. This Nonetheless changed in 2007 when

Sasini figured it out that it might have been to agrestic differentiate its operations and

should incorporate dairy, cultivation and also ranger service. For recognitions of its

differentiated operations, it transformed its enrolled sake with Sasini Ltd clinched

alongside 2007 (Sasini Limited, 2016).

1.2 Statement of the Problem

Agriculture is one of the most important sectors of the Kenyan economy, and is

dominated by a vibrant private sector comprised mainly of small and medium-sized

farming and processing operations. Taken together, Kenya’s farms, farm product

processing and agro-industries generate about half of Kenya’s GDP (GTZ, 2010). It is on

this backdrop that agribusiness presents an area of study. There exist limited studies on

the contribution of technology to the performance of agribusiness firms in Kenya. For

instance, Karanja (2013) studied the factors influencing the growth of agribusiness

enterprises in Kenya while William & Alunga (2013) studied Gender Roles and

Agribusiness in the Kenyan Communities with focus on Likuyani District.

Mburia, Kimani & Kithae (2013) discussed hindrances to the growth of Youth Led Micro

and Small Agri-Businesses in Kenya. It is evident therefore that little literature exist on

the contribution of technology on the performance of agribusiness firms hence the need to

fill this study gap. This study sought to establish the contribution of technology to the

performance of agribusiness firms with specific reference to Sasini Limited. This was

realized by addressing how the use of technology influence marketing at Sasini Limited,

whether use of technology is a determinant to procurement as Sasini Limited and the

effect how technology to trading at Sasini Limited.

1.3 Purpose of the Study

The purpose of this study was to establish the contribution of technology to the

performance of Sasini Limited.

6

1.4 Research Questions

This study was made possible by the following research questions:

1.4.1 How has the use of technology influenced marketing at Sasini Limited?

1.4.2 Is the use of technology a determinant to procurement as Sasini Limited?

1.4.3 What is the effect of technology to trading at Sasini Limited?

1.5 Significance of the Study

This study finding is of importance to the following stakeholders:

1.5.1 Agribusiness Industry

From the findings, the industry is in a position to identify and understand whatever

eclipses performance, the measures to take in order to succeed and above all craft a road

map towards bettering the industry.

1.5.2 Policy Makers

The government and its agencies being the cornerstone of all legislations of the land will

be in a position to legislate on friendly policies that are aimed at promoting the success of

agribusiness given its significance to the economy.

1.5.3 Academicians and Scholars

This study finding provides a data bank of knowledge for scholars and other

academicians who intend to dig further in the knowledge area of agribusiness as well as

fill the gaps already identified by their predecessors in order to provide more meaning to

the field of agribusiness in Kenya and beyond.

1.6 Scope of the Study

The study established the contribution of technology to the performance of Sasini

Limited. The target population for this study was Sasini Head Office staff and who were

drawn from the various levels of management in the form of lower level management,

middle level management and top level management. Stratified random sampling was

used to pick out the respondents. This study was undertaken from February 2016 to May

2016 at Sasini Limited based in Nairobi Head Office, Loita Street.

7

1.7 Definition of Terms

1.7.1 Agribusiness

Agribusiness is used to mean farming; including all the other industries and services that

constitute the supply chain from farm through processing, wholesaling and retailing to the

consumer otherwise farm to fork in the case of food products (FAO,1997).

1.7.2 Technology

According to Moore (2002), technology is described as a process designed to achieve a

given action while reducing the uncertainty in the cause-effect relationship involved in

achieving a desired outcome.

1.7.3 Procurement

Business management function that ensures identification, sourcing, access and

management of the external resources that an organization needs or may need to realize

its strategic objectives (Chartered Institute of Procurement & Supply, 2005).

1.7.4 Trading

According to Oxford Dictionary (2015) trading refers to the process of buying, selling, or

exchanging goods or services.

1.8 Chapter Summary

This chapter gives an in depth analysis of the background of the problem, statement of the

problem, purpose of the study, research questions, significance of the study, scope of the

study and definitions of terms. Chapter two on the other hand highlights literature review

based on other studies in relation to the contribution of technology to the success of

agribusiness. Chapter three looks at the research methodology which entails research

design, population of the study, sample size, data collection instruments, data collection

procedures and analysis. Chapter four outlines results and findings while chapter five

provides summary of findings, conclusions and recommendations.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

The purpose of this study was to establish the contribution of technology to the

performance of Sasini Limited. This chapter covers an analysis of literature mostly

consisting of summaries of studies conducted in support of this research. The literature

consists mainly of a review and analysis of peer reviewed journals, news articles and

published books obtained from both online database sources and academic books. This

chapter is broken down into three major sections, each addressing the research questions

for the study.

2.2 Influence of Technology on Marketing

Marketing being a key functional department of any organization plays a vital role as far

as performance is concerned. This section will discuss the various forms of marketing

mix such as placement, product, price and promotion as well as other forms of marketing

such as advertisement, distribution as well as communication and how technology affects

them towards organizational performance.

2.2.1 Advertising

Advertising as a form of marketing is any paid form of non-personal presentation and

promotion of ideas, goods and services and it is required price (Kotler, 2003). Advertising

as a form of marketing has a direct relationship with the sales performance since it is a

tool which is used to attract intention of the customer by conveying the benefits relating

to the product or service. Muyiwa, Ogunshipe and John–Dewole (2013) explain that

advertisement is a form of communication use to encourage, persuade, or manipulate an

audience (viewers, readers or listeners; sometimes a specific group) to continue or take

some new action. The main reason is mainly to drive consumer behaviour with respect to

a commercial offering, offer reassuring employees or shareholders that a company is

viable or successful.

9

Advertisement has direct impact on the minds of the consumer to consume greater portion

of the product and quick consumption thus increasing organizational profitability

(Ailawadi & Neslin, 1998). Advertisement is beneficial in both short run and long run

businesses although in long run it is most valuable, it increase the value of the product

and organization (Pwaels, Silva-Risso & Hanssens, 2003). Advertisement consists of

some kinds of advantages while some are communicative according to their nature. Brand

loyalty is major requirement of the advertisement. With the advertisement we can easily

enhance the loyalty of our customer. It drives acceptable behavior relating to the brand

and it encourage the customer to repurchase the product.

The transmission modes include newspaper, magazines, television, radio, outdoor, mail or

through any other electronic means such as blogs, websites or text messages. Niazi,

Siddiqui, Shah and Hunjra (2012) posit that of all marketing weapons, advertising has

leading impact on viewers mind, as its exposure is much more wide. The rapid changes in

technology especially the emergence of the internet has revolutionized the way business

activities are carried out. According Yannopoulos (2011), organizations cannot survive in

this rapidly evolving technological environment unless they change the ways in which

they conduct their business. Hoffman and Novak (2000) adds that technological

development make it necessary to rethink how firms should conduct their business and

market their products as this new technology affects all aspects of marketing.

For example, development of the internet has provided a platform for mass

communication, customization and ease of referrals which reduces cost of advertisement

and enhances wider reach. Yannopoulos (2011) observes that search engines such as

Google and Yahoo use such recommendation systems to recommend relevant products or

services on the basis of keywords supplied by users. The others social media like

whatspp, facebook and youtube have been used to influence consumer behavior. Faraz

Farooq (2012) assert that the influence of any person close to an individual has some

impact on his life and this influence can also be seen in purchase decision making. In this

way technology when used appropriately have a major potential of reaching more persons

easily, influence purchasing decisions at a reduced cost.

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2.2.2 Pricing

Pricing is a big determinant in any industry. For example in Kenya pricing in the

automobile industry is pre-determined each month by the angry regulatory commission

which uses a formula to determine the price of the product (fuel) for the coming month.

The factors used to determine this are: international crude prices for the month preceding

effective mouth, the exchange rate and other costs related to geographical distance across

Kenya. Therefore, different towns have different prices with the lowest being at Mombasa

and highest at Lodwar (Kevin, Hartley & Rudelins, 2007).

Kevin, Hartley & Rudelins (2007) argued that in general, customers always went a

reasonable price in buying a product or services. The price must however show value of

the product for the customer to remain loyal. The main element of this is the amount a

customer pays for a product. This amount determines the level of profit for a company

and consequently its survival. Change of price has a profound impact on marketing

strategy, price elasticity of the product which then affects demand and sales a factor

triggered by technology. The price should therefore be set to compliment other elements

of to marketing mix (Needam & Dare, 1996).

Marketers are also advised to be aware of the customer perceived value when setting

price for the product as well as the role of technology as far as pricing is concerned.

Pricing strategies are: market skimming, market penetration and neutral pricing.

Reference value and differential value must be taken into account (Needham, 1996). Price

changes have inverse relationship with sales (demand) for a normal good and other things

assumed. Pricing include: discount, allowance and credit.

Studies indicate that there is a positive relation between suitable prices with customer

loyalty (Martin, Ponder & Lueg, 2008). It must be remembered that customers who are

loyal to a brand or company will always be less price sensitive. Prior to setting a price,

marketers often set objective for the price to facilitate the process of price determination.

The objective usually is to remain in the market, to capture a large market share,

maximize profit by highlighting product quality (Armstrong & Kotler, 2000). A suitable

price is one that will cover the costs (fixed and variable) and leave the proprietor with a

reasonable profit.

11

Technology has played critical role in price determination. Yannopoulos (2011) outlines

five ways in which technology especially the internet has influenced organizational

pricing strategy. First, the technology offer information explosion resulting into more

competition among firms and lower prices (Zettelmeyer, 2000). Secondly, according to

Iyer and Pazgal, (2003) the internet search engines make the search for the lowest price

for products easy, quick, and at a low cost. This increase the customers bargaining power

by providing them with information about large number of suppliers.

Third, is the collection of online suppliers which has unique the entering of ample

amounts of electronic retailers, which go provided online shoppers all round a concerning

brand name of choices countenance attractive their mediation talent, non-inclusion the out

of the limelight barricade regardless how declining cut off on prices (Yannopoulos,

2011). Lodgings, the internet has provided an collection in online auction housing which

surrebutter as agile methods of real-period pricing enabling conspicuous and sellers to get

or kidnap staples skim through an online order power go till the end of time advantages in

goods sold at downstairs prices (Hanson, 2000). Decidedly, the internet offers marketers

fine avant-garde pricing dash and grilling contribution.

Yannopoulos (2011) cash prowl in be in a class to common biography spin pricing

confirmation is favoured in interpretation of time and aggressive, the Internet allows

marketers to enquire about and over pricing decisions in real-time and connected with

respect to draw economize. Baker, Marn and Zawada (2000) sire lose concentration by

inception it easier to run after purchaser responses to prices, etailers hinie usual prices

with adjacent to wagerer focus and defend make allowance sortie adjustments the

moment that first. Online pricing stay makes open key detach from multiply sources such

as client get reckoning stored in databases or in cookies created in customers’ computers

or clickstream hint. Such pricing tip-off footing in reserve managers jot their markets in

avant-garde engagement and unembellished useful buyer groups (Yannopoulos, 2011).

2.2.3 Promotion

Promotion involves a variety of activities undertaken by a firm to communicate the merits

of its products and to persuade target consumes to purchase it (Nasirundin, 2011). It

includes activities like advertising, sales promotion, personal selling and publicity.

Promotional techniques common to the oil industry has been price discounts, free gifts

12

and vouchers, advertisements in the press and after sales service like checking for oil,

cleaning windows, wind screens, car washing and break fluids.

Alghamdi and Bach (2014) observes that technology has encouraged the development of

effective promotional activities and relationship marketing. A study by Brady, Fellenz

and Brookes (2008) allude to the fact that technology has an impact on the main activity

of marketing strategies, which is the securing and retaining of profitable relationships

with consumers. Alghamdi and Bach (2014) adds that technology affects the way

companies communicate with consumers and how they carry out their promotional

activities.

Further, studies by Aaker (1991) and Keller (1993) indicated that promotional activities

such as brand-oriented advertising (e.g., non-price advertising) strengthens brand image,

causes greater awareness, differentiates products and builds brand equity this is made

possible through the adoption of technology. Advertising may also signal product quality

leading to an increase in brand equity (Kirmani & Wright 1989).

2.2.4 Placement

Technology has made it possible for businesses to decide on the place of purchase or

where and how to distribute the product to the customer. Consumer would be satisfied if

products are made available at the right time, in the right place and in the right quantity

(Hashin, 2011). For example, oil marketers need to strategically locate their stations so

that motorists can easily access them whether in town or out of town. For instance, since

automotive fuels are demanded by motorists, its supply should be at convenient locations

for motorists (along busy highways or roads). The stations do not have to be widely

dispersed but should be guided by the volume of traffic along a given road.

Distribution breadth (the percent of distribution that carries a brand) can affect brand

performance, but as with product, theoretical and empirical evidence for these effects are

limited. Increases in the breadth of distribution lead to higher base sales as the wider

availability facilitates consumers’ ability to find the brand (Bronnenberg, Mahajan,

&Vanhonacker, 2000). A recent study by Ataman, Mela, and Van Heerde (2008) showed

that distribution plays a central role in building new brands. Product innovation is also

likely to have considerable effects as it is a core source of differential advantage.

Wairachu (2000) indicated the need of companies to ensure accessibility of their products

13

and services by establishment of convenience stores to ensure convenience and ease. Ease

of accessibility of products and services ensures customers are flexible and perceives the

purchase as easy. This wholesomely affects sales and in turn the market shares of the

company. Isoboke (2000) while addressing the responses of oil industry players

highlighted that many companies were developing new market as well as carrying out

market segmentation to ensure a wide coverage and ease of accessibility to customer

perception of a company changes as it becomes easy to deal with this kind of company.

2.2.5 Product

Lamb (2009) divided product into two parts, namely business and customer product. A

product can be a good or as service. When considering product as a marketing element,

issues such as brand, quality, design and packaging are very important. A company must

devise strategies to boost demand for its product in order to succeed in the market. The

brand should be acceptable to the customer; the quality should be high so that loyalty of

the buyer can be won through satisfaction, an achievement of technological adoption

(Seine, 1993).

The positive benefits of technological adoption on a product never be gain said. For

example a study by Djajanto, Nimran, Kumadji and Kertahadi (2014) while using the

case of the banking sector indicated that the application of technology such as on-line

banking system, internet banking, mobile banking, mobile phone-based (phone banking),

the use of Automatic Teller Machine (ATM) has been critical for banks in retaining and

satisfying customers and in creating a competitive advantage in an effort to compete with

other banks. Moreover, rapid use of technology indicates that consumers have changed

how they access various services, including accessing banking services.

In the automotive fuels, the product is uniform (homogeneous) but the quality may differ

depending on the process of transportation, storage and the temptation to adulterate in

order to increase profit margins. The dealers (marketers) in this respect must ensure that

they adop technologies that different the produces albeit in the customers mind to

maintain and attract customer loyalty. For instance, used a new technology to shell came

up with a product called V-Power intended to improve efficiency in motoring by covering

more mileage. Sulphur diesel has also been argued to be of better quality due to its low

residue. These are considerations that oil marketers must make in order to gain the

14

completion edge in the market. Motor engines require high quality automation fuels for

better service and problem free driving (Seine, 1993). Such strategies can also be used in

the agro industries to create differentiation and product value.

2.2.6 Distribution

Product distribution is a critical process of the supply chain, and links the entire firm with

its outbound supplies and market in general. Khan, Bakkappa, Bhimaraya & Sahay

(2009) envisages that business organizations’ operating efficiency depends on how well

the distribution nodes and strategies are structured and organized. They posit that

distribution process allows the flow of information, products and services smoothly, at the

best prices, which promotes the competitive edge to the firm which is enabled by the use

of technology. On the other hand poor distribution processes spread an array of

distractions and dissatisfaction across the supply chain and ultimately customers.

Technology is responsible for effective distribution practices that minimize costs,

ensuring that benefits such as increased sales and profits are gained (Schary & Backer,

1976). This improves firm performance since multi-channel distribution in supply

management is said to ensure prompt response to the flow of market place information,

provide valuable data for the distribution systems like customers’ orders, customers’ need

for information etc. (Chow, Choy, Lee & Chan, 2007). Some of the factors that have been

fuelling the utilization of multi-channel product distribution have included the need for

sales growth arising from an extended market coverage and improved satisfaction of the

customer target (Thornton & White, 2001).

A cost reduction by substituting high for low cost channels is necessitated by

technological adoption (Wright, 2002), more and better market information given the

increased number of means linking the company to with the market and a reduction in

business risks, by diversifying the sources of a company’s business. Further literature

indicates that incumbent channels should not automatically be alarmed when additional

channels are introduced. Consider that under certain circumstances one channel's efforts

can drive traffic to another channel, especially when conducted with such intent

(McIntyre, 1997, Schmid, 1999). And losing sales need not hurt overall profitability. For

instance, a new channel might be targeted at an existing channel's least profitable

customers. Or a manufacturer opening a direct channel might at the same time sweeten

15

the wholesale terms offered to existing intermediaries hence improving the performance

of the multichannel led product distribution firm (Chow, Choy, Lee & Chan, 2007).

Technology which is responsible for multi-channel distribution has been identified as

promoters of sales growth, improved satisfaction of consumers target and cost reduction

by substituting high for low cost channels, increased number means linking company

with market sections, reduced business risks and diversified sources of company business.

Stern et al., (1996) brings out the value of each independent channel performance. Each

independent channel contributes to the aggregated firm’s sales growth, improved

customer satisfaction, cost reduction, and increased means of linking the firm products to

the market, thus improved productivity (Thornton & White, 2001).

The sharing of intelligence between channel members has been virtually ignored by

proponents of single channel distribution. Yet, intelligence can be thought of as

information on the marketplace processed and retained by channel members that could

potentially reduce decision making uncertainty (Huber 1990). Channel members with

better intelligence than their competitors are arguably more market oriented and enjoy an

advantage in both forming and implementing marketing strategies (Jaworski & Kohli,

1993). This directly impacts performance of the multi-channel product distribution

entities.

2.2.7 Communication

Gabrielli & Balboni (2010) notes that the use of communication marketing is a process of

systematic coordination of a company’s multiple messages and many communications

activities, integrating these into an unvarying communications mix, to convey a clear

message about itself and what it offers, to its target market.

Technology more so mobile and internet technologies have made it possible for

businesses and owners to interact Moore (2012). This form of technology is significant

factor for the study given that interactive technologies are a major contributor to today’s

consumers. According to Moore (2012), “marketing and advertising is evolving with the

dissemination of the internet as a tool for commerce and technology p.437."

According to Kanibira, Saydanb & Nartc (2014), marketing communication entails the

processes of creating communication opportunities and sending messages to and

16

receiving messages from consumers, in order to create the desired reactions in the target

audience which is propelled by technology. Regarding the role of marketing

communication mix in SMEs growth, Duncan & Moriarty (1998) indicate that the

marketing concept places emphasis on bringing together all the marketing mix variables

and combining their programs and activities. SME owners/managers in some countries,

such as Slovenia, are aware of the importance of marketing communications as the viable

resource of their business performance (Mumel, Hocevar & Snoji, 2007). Keller (2009)

specifies that, to establish the required understanding, familiarity and image in

consumers’ minds as well as combining and matching different communication options.

According to Kanibira et al., (2014), the aims of marketing communication are generally

to support sales, to create product and brand awareness, to develop and corporate image

and to shape the attitudes and behaviours of the target audience. This emphasis is

maintained further by Kotler & Keller (2012), who state that it is through marketing

communications that firms attempt to, directly or indirectly, inform, persuade and remind

consumers, regarding the products and brands that they sell.

2.3 Technology as a Determinant to Procurement

This part will cover a discussion on logistics, search engines and inventory management

system.

2.3.1 Logistics

The Council of Supply Chain Management Professionals (2007) defines logistics

management as “that part of Supply Chain Management that plans, implements, and

controls the efficient, effective forward and reverses flow and storage of goods, services

and related information between the point of origin and the point of consumption in order

to meet customers’ requirements.” Both Stank et al. (2002) and Lin (2006) label the

accounting of unification the logistics processes of about house radiogram partners to

emend suffice for the needs of accurate patrons thumb ameliorate technological

cryptogram. Rodrigues, Bowersox and Calantone (2005, p.1) brand name logistics as

“one of the subdue cut back complicated in enormous good deal.”

Rabinovich & Knemeyer (2006) label a ground-breaking have relevance of logistics-

related firms: logistics abet providers object in reserve internet convenience cords on

17

technological greedy. These logistics subvention providers support internet sellers

compound almost the extensive of at hand logistics firms to fulfill purchaser orders round

immensely and efficiently scan the description notice of technology (Rabinovich &

Knemeyer, 2006). Logistics facilitate providers set shopkeeper not far from both internet

sellers and third-party logistics providers and unite the sanction and put about processes

enclosing the convenience rope scan the superintendence of what Rabinovich &

Knemeyer (2006) fascination “hub functionalities.” Vaidyanathan (2005) describes a

similarly duty for fourth-party logistics providers in surrounding familiar customize radio

configurations such as those turn aid manufacturers up clarifying business. Lai and Cheng

(2003) demonstrate the interest of a adapt telegram sighting on the admiration of drive out

logistics aid providers as they comport oneself to friend suppliers, manufacturers, sellers,

and customers around the convenience hawser. They prevail upon that dismiss logistics

relieve providers entertain focus on adjust rope bit in secondary to organizational

command.

2.3.2 Search Engines

The word being a global village has made it possible for businesses to transact

electronically. Procurement has adopted the use of search engines such as google, yahoo,

mamma just to mention a few to make it easy to transact. The adopted forms of e-

procurement are mainly in Electric Data Interchange (EDI) and e-marketplace. Albrecht,

Dean and Hansen (2005), stated that the mainline E-business architectures are: EDI,

company websites, B2B hubs, e-procurement system, and web services.

Technology is seen to provide a number of ways of handling core business competences

and as well as functions. The characteristics and nature of technology makes it possible to

perform the functions as well as initiating wide applications in marketing as a result of the

search engines. Sherman (2001) identifies that “search engines as being significant to get

people to your website for the first time visit but also for repeated visits or return. This is

possible through the use of newsletters (Sherman, 2001). Technology makes it possible

just like other web-based search engines and the internet to enable companies discover

new potential clients. They allow existing consumers to include the URL of the company

or its advertisement site to their list of favorites allowing them to easily return to the sites

and check out new products, announcements, and services. Nonetheless, according to

18

(Sands, 2003), this not necessarily translates to the first time consumers returning to the

company’s site or will regularly check for new products and services. Researchers have

revealed that that information and communication technology just like the e-mail

emphasize on the merits of the internet and web based technologies. This is so since e-

mail becomes a push and pull tool that offers consumers a platform with free useful

information in the form of e-bulletins and e-newsletters (Sherman, 2001). These are

added to web based technologies to add to the pull strategy of the websites (Sherman,

2001).

Websites are deemed to first attract new and existing consumers with the aid of a high

search engine score which in turn increases the probability of it appearing on the first

page of the search engine. This is realized by having the right combination of search

terms associated with the company, its brands, its advertisements, sales promotions, and

offers (Winter & Sundqvist, 2009). The e-newsletters as well as the e-bulletins add to the

pull strategy of technology since they offer the consumer useful information as well as

promotional materials. A satisfied consumer often contacts the company via their e-mail

list, executes their purchases online and above all places their delivery online. These web

based tools are the main technologies that improve the pull strategy of marketing (Winter

& Sundqvist, 2009).

Kim & Shunk (2004) on the other hand have defined the taxonomy in more detail and

clear manners for e-procurement systems: Buyer-centric e-procurement systems, included

intranet e-procurement systems, buy-side private e-marketplaces, and buy-side

consortium e-marketplaces; supplier centric e-procurement systems, included e-

storefronts (sell-side private e-marketplaces, web storefronts, virtual storefronts, online

shops, or merchant servers) and sell-side consortium e-marketplaces. Neutral e-

marketplaces included independent, third party e-marketplaces: End-to-end electronic

document/message exchange systems, including internet-enabled EDI, XML/EDI,

extranet, standard-based messaging systems (i.e. XML-based e-business framework such

as eb XML and Rosetta Net and e-mail which are as a result of technology to enable their

business transactions.

19

Especially, the e-marketplace today is getting mature and popular as internet has

prevailed over the world. They emerged in different industries, supporting the exchange

of goods and services of different kinds, with and for different types of actors, and are

following different architectural principles. Most observers have assumed that e-

marketplace would come to dominate the e-business landscape (Kim & Shunk, 2004).

Therefore, following the trend, there is need to know more about e-marketplace. On one

hand, it can help us understand the practical applications of e-procurement. On the other

hand, some definitions, characteristics or nature may represent a part of e-procurement.

An e-marketplace which entails the use of search engines effectively brings players

together in a real-time marketplace to perform basic exchange transactions, such as price

and production specifications, and strategic supply chain collaboration, as forecasting

demand and new product development (Kim & Shunk, 2004).

The primary objectives are to streamline complex business processes and gain efficiency.

It is based on the notion of aggregating buyers and sellers in a single contact point to

allow participant organizations to enjoy greater economies of scale and liquidity; and to

buy or sell anything easily, quickly and economically (Wamego, 2005). E-marketplaces

brought about by technology also enable companies to eliminate geographical barriers,

and expand globally to reap profits in new markets that were once out of reach (Eng,

2004).

2.3.3 Inventory Management System

Inventory Management is very vital in the performance and growth of the procurement

function in a company. The entire profitability of an organization is tied to the volume of

products sold which has a direct relationship with the quality of the product. The

procurement function does a lot to present a good company to the public in terms of

quality production. Good inventory management in any manufacturing organization saves

the organization from poor quality production, disappointment of seasoned customers,

loss of profit and good social responsibility, (Johnson, 2008). This is done by ensuring

timely delivery of raw materials to the factory and distribution of finished goods. If

inventory management is not adequately maintained, production cannot meet the

aspirations of customers which are loss of revenue to the organization. Right from

20

procurement to the time of processing, quality of raw material is the chief determinant of

the productive efficiency of any manufacturing concern (Johnson, 2008).

Lawson (2008), views that the most effective measurement systems assess performance in

the entire length of the organization’s procurement function, from suppliers through

internal processes to customers via technology. The measures are divided in five major

categories which include cost measures, quality measures, time measures, supplier

performance measures and customer satisfaction measures. The metrics that are used in

performance measurement should be those that truly capture the essence of the

procurement function performance (Lawson, 2008).

According to Lawson (2008) a measurement system should facilitate the assignment of

metrics to where they would be most appropriate. For effective performance

measurement, measurement goals must represent the goals of the function and metrics

selected should reflect a balance between financial and non-financial measures that can

aid in decision making. The performance of the procurement function encompasses the

financial performance and market performance. Business profitability is a justification of

its good performance and loss is a justification of poor performance. Profits are an

indication of good performance. A higher percentage of the return on assets shows how

profitable a company’s assets are generating revenue.

2.4 Effect of Technology on Trading

This area will cover customer relation management, flexibility and effectiveness as well

as innovativeness.

2.4.1 Customer Relations

According to Swift (2000) customer relation management (CRM) technology used in

trading refers to a method of understanding the customer behavior through intense

communication with him/her to improve the performance which is represented in

attracting the customer, keeping him/her and increasing his/her loyalty and profitability. It

can be noticed that this definition regards CRM as mere communication on the part of the

organization to understand the customer's behavior. On the other hand Stone & Findlay

(2001) defined CRM as the organization carrying out a lot of information about the

21

customer from various resources and keeping it in order to divide the territories, analyze

and reuse.

This definition regards CRM as only collecting and recording information about the

customer. Fross & Stone (2001) defined CRM as the company use of its abilities in the

field of research methodology, technology and e-commerce in order to manage customer

relationships. This definition for CRM regards it as the ability to use technology in the

domain of dealing with customers (Parvatiyar & Sheth, 2002) mentioned that CRM is a

comprehensive strategy that includes the process of acquiring certain customers, keeping

them and cooperating with them to create a distinguished value for both the company and

the customer. This strategy requires integrating the functions of marketing, sales,

customer service and exposition chain so as to achieve the highest competence and

efficiency in delivering value to the customer through technology. As it shows, this

definition regards CRM as a strategy with a main goal of delivering a distinguished value

to the customer through improving the marketing productivity.

Payne & Frow (2005) demonstrated that there are various points of view related to the

concept of CRM. Whereas, some points of view were in favor of regarding CRM as

correspondence in direct mail, a diagram for customer loyalty programs or databases,

other points of view regarded it as an assistant office work or a call center. Still, some

considered it data storage or taking care of data search and processing. Finally, some

considered it gaining the systems that make it able to perform ecommerce. Payne & Frow

(2005) mentioned that the obvious lack of accepted and appropriate definition of CRM

may lead to the failure of the project of CRM, particularly if organizations adopt the

limited point of view, which is related to specific technology (the technological

dimension).

Therefore, the two researchers tried to put a more comprehensive definition which pays

attention to the strategic point of view. So they defined CRM as a strategic method related

to creating a distinguished value for the contributors through improving good

relationships with the main customers and other customer categories, as it (CRM) seeks to

unify the strategies of marketing using relationships and information technology to create

profitable, long-term relationships with customers and other parties. This value is created

through providing good chances to use data and information to understand customers and

22

provide them with value. Consequently, this requires the integration of customers,

individuals and marketing abilities, which happens through information, technology and

applications (Payne & Frow, 2005).

Kumar & Reinartz (2006) agree with the above definition that CRM is merely a strategic

process by which the institution's more profitable customers are chosen, and interactions

between this institution and these customers is determined, in order to achieve the goal of

maximizing the present and future values for customers. Unlike all the above,

(Ramaseshan, 2006) defined CRM from the employment point of view as a process of

achieving a continuous dialogue with each customer on their own, using all the available

means to know the quantitative expected response of that customer as a result of

practicing marketing activities to the degree that maximizes the general profitability of

the organization. It is clear that this definition only concerns about short-term CRM, and

not long-term CRM.

The speed with which technology spurs growth and development as witnessed with the

increasing adoption of mobile digital devices globally like in the case of smart phones

and tablets, have a insightful transforming influence on consumer behavior in terms of

relation as well as on retail businesses at large (Bain, 2012; Nielsen, 2013).

Bain (2012) and Nielsen (2013) further opines that today that by keeping pace with

technological developments as well as innovation plays a significant role for businesses at

large. For example, mobile digital technologies aids develop ads as well as new on-the-go

services that help in customer relation. This ultimately ensures that relationships between

customers and retailers go beyond the physical store into the digital sphere. Retailers are

thus perceived as being indivisible part of digital connections amongst customers

themselves by through creation and participation on social media.

2.4.2 Flexibility and Effectiveness

Flexibility has often been defined as the ability of a system to respond effectively to

changing circumstances (Piore, 1989). Effectiveness can be referred to as a long term

firm orientation (Morgan et al., 2004). Scholars often equate effectiveness to non-

economic performance or nonfinancial measure. It is further emphasized by Ataollah et

al. (2010) that non-financial performance is crucial for a company’s future performance

which is boosted by technological adoption. Pertinent to distribution issue, Rhea et al.

23

(1987) see distribution effectiveness closely related to customer satisfaction. For instance,

if a customer expects a delivery of an order is on a two week time; then, the delivery

service is considered effective once the order arrives in less than two weeks or on the last

day of the delivery time (Rhea et al., 1987).

Further, ineffective use of technology when the order reaches the customer later than the

expected time is detrimental. In fact, the longer the order reaches the customer the less

effective the delivery services on the eyes of the customer will be. Innovation in

distribution channel as in other cases (Mukhamad & Kiminami, 2011; PlaBarber &

Alegre, 2007) would enhance firm performance. However, the impact of such innovation

on firm performance would be less if it does not improve the effectiveness of distribution

channel functions. Previous studies overlooked this possible association, thus the present

study attempts to examine the mediating effect of distribution channel effectiveness on

the relationship between distribution channel innovation and firm performance

(Mukhamad & Kiminami, 2011).

2.4.3 Innovativeness

Crossan & Apaydin (2010) highlights that innovation is creation or acceptance ,

adaptation and utilization of a value - added novelty in trade and industry spheres,

regeneration and expansion of product , services and markets, making of new ways of

product development and establishing new demands that is the main player between the

individual and organizational knowledge attributed to technological knowhow.

Technological adoption has ensured that companies’ abilities are anchored on their

performance (Bonn, 2000; Rosli & Sidek, 2013) or growth (Dobbs & Hamilton, 2006).

The concept of firm growth is associated with the law of proportionate effect, which

states that the firm growth is proportional to the firm’s current size.

The empirical research indicates that there is positive relationship between innovation and

growth of the firms if there is a constant supply of finances in more techno savvy world

(Hyytinen & Toivanen, 2003). In the presence of innovation, the overall firm

performance would enhance (Rosli & Sidek, 2013; Salim & Sulaiman, 2011). This shows

that innovation is critical for the growth of the organization in terms of its sales, market

penetration, profitability and sustainability of organizations especially for small and

medium enterprises (Hyytinen & Toivanen, 2003).

24

Adair (2004) opines that an innovative firm has bank of ideas and that according to

Skarzynski & Gibson (2008), an innovative process is often classified into two distinct

sections where one is tasked with the generation of the original idea, thought or concept

while the second phase deals with the implementation and marketing of the innovation all

which is realized through the adoption of technology.

2.5 Chapter Summary

This chapter has highlighted the various scholarly works with regards to the use of

technology in marketing, technology being a determinant to procurement and the effect of

technology to trading.

25

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter outlines presents how the study was carried out while at the same time

answering the research questions. This chapter further present chronologically the

research design, population and sampling design, data collection method, research

procedures as well as data analysis methods.

3.2 Research Design

The research design to be adopted was both qualitative and quantitative in nature.

Descriptive statistics is that branch of statistics that deals with the collection, organizing,

summarizing and presentation of sample data (Hershberger & Reynolds, 2007).

Descriptive statistics is therefore, critical in drawing conclusions and describing

characteristics associated with the subject population from which the sample was drawn.

It discovers and measures cause and effect relationships among variables (Cooper &

Schindler, 2001).

This study adopted descriptive research design to establish the contribution of technology

to the performance of Sasini Limited. This study incorporated the use of survey to collect

data from the respondents. Sarandakos (2005) defines surveys as methods of data

collection in which information is gathered through oral or written questioning. In order

to reinforce the research design, the study also incorporated the use of structured

questionnaires to collect primary data from Sasini Limited staff.

3.3 Population and Sampling Design

3.3.1 Population

Best & Kahn (2007) describes population as group of individuals who have one or more

characteristics in common that are of interest to the researcher. Further, Frankfort-

Nachmias & Nachmias, (1996), define population as the ‘aggregate of all cases that

conform to some designated set of specifications’. This represents the entire set of units

of analysis or the total collection of elements on which inference is to be made (Cooper &

26

Schindler, 2001). The total population understudy was 100 employees of Sasini Limited

whose job location is at the Nairobi Head Office.

Table 3.1: Population Distribution

Category Population Percentage

Top Level Management 14 14

Middle Level Management 47 47

Lower Level Management 39 39

Total 100 100

Research Data (2016)

3.3.2 Sampling Design

3.3.2.1 Sampling Frame

This study engaged the use of stratified random sampling technique for the purpose of

data collection. It is a probability sampling procedure where the target population is

divided into a number of cadres, from which a sample is drawn (Sarandakos, 2005).

Sampling frame on the other hand is defined by Hair, Black, Babin, Anderson & Tatham

(2007) as a comprehensive list of the elements from which the sample is drawn.

In this study, Sasini staffs were grouped depending on their cadre in the form of top level

management, middle level management and lower level management. The strength of this

technique lies in its ability to allow all population groups to be represented in the final

sample (Sarandakos, 2005), thus, reducing variability. It is economical and offers a high

degree of representativeness.

3.3.2.2 Sampling Technique

This study engaged the use of random sampling technique for the purpose of data

collection. It is a probability sampling procedure in which the target population is divided

into a number of strata, and a sample is drawn from each stratum (Sarandakos, 2005).

In this study, Sasini staffs were further grouped on different cadre in the form of top level

management, middle level management and lower level management. The vigor of this

technique is based on its ability to allow all population groups to be represented in the

27

final sample (Sarandakos, 2005), thus, reducing variability. It is economical and offers a

high degree of representativeness.

3.3.2.3 Sampling Size

According to Frankfort-Nachmias and Nachmias, (1996), a sample size represents a

subset of sampling units from a population. This gives the entire number of population

elements from which data is to be actually collected. A sample size of 100 was selected

from a total population of 100 drawn from Sasini Limited. The sample size selected is due

to members’ availability, time and cost of data collection.

Table 3.2 : Sample Size Distribution

Category Population Sample size Percentage

Top Level Management 14 14 14

Middle Level Management 47 47 47

Lower Level Management 39 39 38

Total 100 100 100

Source: Sasini Limited (2016).

The intended sample size was selected randomly from each category and the

questionnaires administered during the official working hours.

3.4 Data Collection Methods

Primary data for this study was collected using a questionnaire crafted in line with the

research questions. The questionnaire was developed in four sections; the first section

covered the general information, section two the use of technology on marketing at Sasini

Limited, section tackled technology as a determinant to procurement at Sasini Limited

and finally section four looked at the effect of technology to trading at Sasini Limited.

Sarandakos (2005) posits that questionnaires are stable, consistent, and uniform offering a

considered and objective view of issues, since respondents can consult their files. This

therefore allowed drawing of valid inferences from the study.

The questionnaire composed of both open-ended and closed ended questions detailing the

variables of study. The questionnaire also used both dichotomous and Likert scale

28

questions. Open-ended questions often permit free responses from the respondents,

without either providing or suggesting any structure for the replies. The close ended

questions on the other hand enabled responses of the respondents to be limited to stated

alternatives (Bryman & Bell, 2003). These alternatives will be designed in such a way as

to be simple for the respondents to understand. The use of close ended questions method

was adopted since it enables isolation of the responses from external influences (Bryman

& Bell, 2003) unlike the open ended questions which give the respondents total freedom

to express their views and attitudes in unbiased manner.

3.5 Research Procedures

The questionnaire was pretested on five participants (5% of the sample size) drawn from

Sasini Limited Head Office. These five respondents who took part in the pilot study were

not be included in the study. The questionnaires were administered with the help of two

trained research assistants during the working hours. The pilot study enabled the

researcher to be familiar with the research and its administration procedure as well as

identifying items that require modification. The result helped the researcher to correct

inconsistencies arising from the data collection tool, which ensured that it measures what

it is intended to.

Pre-testing of the questionnaire also helped in ensuring the validity of the research

instrument. It provides the best opportunity for the researcher to seek honest opinions of

experts in the field of study especially the researcher’s supervisor and the targeted

population. It also ensures that the necessary revision and modification, if any, is made on

the research instrument prior to the actual study. The study provided anonymity to the

respondents and responses were treated with utmost confidentiality in order to realize a

high response rate.

The responses to the open ended questions registered during data collection underwent

cleaning and thereafter coding and analysis using Statistical Package for Social Sciences

(SPSS) program in order to develop a quantitative inference to the subjects of study.

Moreover, the results were then be presented in the form of tables and figures so as to

establish whether the various observations made represent the entire population of study,

or if they are in any way biased towards the various sections of the population.

29

3.6 Data Analysis Methods

The collected data were screened and checked for completeness and comprehensibility.

The data was then summarized, coded and tabulated. The tabulated data was analyzed

with the help of the Statistical Package for Social Sciences (SPSS) that has data handling

and statistical analysis capability that can analyze data statistics and generate descriptive

statistics.

Data presentation was done by the use of tables and figures. The purpose of presentation

of data was to highlight the results and to make data or results more illustrative by

presenting in the form of figures and tables so that it is easy to observe general trends.

The study used inferential statistics in the form of one way ANOVA, frequency

distribution to analyze the findings.

3.7 Chapter Summary

The chapter handled the research design used in the study; explains why the design is

relevant to the study. Population, sampling technique, sample frame and sample size to be

used has also been explored. Lastly, the data analysis tools, Statistical Package for Social

Sciences (SPSS) is also talked about. Chapter four will presents results and findings of

the study.

30

CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

The purpose of this study was to establish the contribution of technology to the

performance of Sasini Limited. The first part of chapter four presents findings on the

gender of the respondents, department of the respondents, years worked by the

respondents, education level of the respondents and the salary range of the respondents.

The next section, (4.3) provided the study findings on the influence of technology on

marketing, 4.4 highlights the findings on the influence of technology on procurement and

lastly, section 4.5 contain results on the influence of technology on trading. The last part

of the chapter provides the chapter summary. The questionnaires were distributed

between September 2015 and May 2016. The data for this study was limited to hundred

(100) respondents compared to the one hundred (100) targeted, indicating 100% response

rate. The study findings are outlined below.

4.2 General Information

4.2.1 Gender of Respondents

The survey sought to show the gender of the respondents. From the study it is vivid that

majority of the respondents at 70 (70%) were male while the female were 30 (30%).

Figure 4.1: Gender of Respondents

Research Data (2016)

31

4.2.2 Work Department of the Respondents

The study sought to establish the departments of work by the respondents. Results of the

study shows that majority of the respondents at 40 (40%) were drawn from marketing, 23

(23%) finance; human resources contributed 20 (20%) while procurement department had

17 (17%).

Table 4. 1: Work Department of the Respondents

Work Department Distribution

F %

Human Resources 20 20

Finance 23 23

Marketing 40 40

Procurement 17 17

Total 100 100

Research Data (2016)

4.2.3 Years Worked by the Respondents

The study aimed at establishing the number of years worked by the respondents at Sasini

Limited. The findings shows that most of the respondents at 35 (35%) had worked

between 12-17 years, less than 5 years were 30 (30%), between 6-11 years 20 (20%),

over 24 years 10 (10%) whereas between 18-23 years were 5 (5%).

Table 4. 2: Years Worked by the Respondents

Number of Years Worked

Distribution

F %

Less than 5 years 30 30

6-11 years 20 20

12-17 years 35 35

18-23 years 5 5

Over 24 years 10 10

Total 100 100

Research Data (2016)

4.2.4 Education Level of Respondents

The study also sought to find out education level of the respondents. The study findings

shows that majority of the respondents at 72 (72%) have attained tertiary

college/university education, other level of education contributed 22 (22%), secondary

education 4 (4%) and high school 2 (2%).

32

Table 4. 3: Education Level of Respondents

Education Level of Respondents Distribution

F %

High School 2 2

Secondary School 4 4

Tertiary College/University 72 72

Others 22 22

Total 100 100

Research Data (2016)

4.2.5 Salary Range of the Respondents

The survey also aimed at establishing the salary range of the respondents. The results

shows that most of the respondents were earning between 61,000 – 80,000 KES (24%),

between 21,000 – 40,000 KES (21%), 41,000 – 60,000 KES (20%), above 100,000 KES

(15%), between 5,000 – 20,000 KES (12%) while between 81,000 – 100,000 KES

(8%).

Figure 4.2: Salary Range of the Respondents

Research Data (2016)

4.3 Influence of Technology on Marketing

To establish the influence on technology on marketing, of a set of seven Likert questions

were presented to the respondents. The mean influence of technology on the marketing

variables is presented in Table 4.4. The table shows that majority agreed that technology

has been used to reduce marketing cybercrime (55%); helps in setting appropriate prices

33

(84%); promote faster product distribution (52%); and is used as a promotional tool

(80%). Overall, majority agreed (61%) that technology positively influence marketing.

Table 4. 4: Effects of Technology on Marketing

Variable Percentage (%)

SD D N A SA

Reduce marketing cybercrime 5 25 15 41 14

Helps in setting appropriate prices 4 4 8 69 15

Promote faster product distribution 4 8 26 49 13

Used as a promotion tool 5 8 7 65 15

Summated Scale 2 11 26 49 12

Analysis of variance was then conducted using department to establish whether the

findings were related in any way to one department of the organization. ANOVA findings

in Table 4.5 shows lack of statistically significant difference between the groups (F (3,

96) = 1.970, p = .305. Hence, we can conclude that generally, technology positively

influence marketing at Sasini Limited.

Table 4.5: One Way Analysis of Variance (Technology versus Marketing)

Sum of Squares df Mean Square F Sig.

Between Groups 5.009 3 1.669 1.970 .305

Within Groups 81.351 96 .8474

Total 86.360 99

Table 4.6: Correlation between Technology and Marketing

METHOD Pearson’s (r)

Reduce cybercrime marketing .577**

Helping in setting up appropriate prices .350**

Promotes faster product distribution .291**

Used as a promotional tool .691**

Sig. (2-tailed) 0.01

N 100

**Correlation is significant at the 0.01 level (2-tailed)

Bivariate Pearson correlation was performed to establish the relationship between

technology and marketing and the results showed that there is a statistically significant

relationship between technology and marketing. This can be illustrated by the variables of

marketing where reduce marketing cybercrime (r =.577**, p < 0.01); helps in setting

34

appropriate prices (r =.350**, p < 0.01); promote faster product distribution (r =.291**, p

< 0.01); and is used as a promotional tool (r =.691**, p < 0.01).

Table 4.7: One-Sample Statistics

N

Mea

n

Std.

Deviation

Std. Error

Mean

Reduce cybercrime marketing 100 3.34 1.148 .115

Helping in setting up appropriate

prices

100 3.87 .861 .086

Promotes faster product

distribution

100 3.59 .954 .095

Used as a promotional tool 100 3.77 .973 .097

Table 4.8: One-Sample Test

Test Value = 2

t df

Sig.

(2-

tailed)

Mean

Difference

95% Confidence Interval

of the Difference

Lower Upper

Reduce cybercrime

marketing

11.674 99 .000 1.340 1.11 1.57

Helping in setting up

appropriate prices

21.731 99 .000 1.870 1.70 2.04

Promotes faster

product distribution

16.658 99 .000 1.590 1.40 1.78

Used as a

promotional tool

18.193 99 .000 1.770 1.58 1.96

As a matter of confirming whether technology influence marketing the study adopted

the use of T- test value of 2, the results shows that technology reduces marketing

cybercrime hence scoring a mean of 3.34, helps in setting appropriate prices 3.87;

promote faster product distribution 3.77; and is used as a promotional tool scored a

mean of3.19. In a nutshell, technology positively influences marketing.

35

Table 4.9: Frequency Distribution (Marketing)

Category Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

Tota

l

F % F % F % F % F % F %

Reduce

marketing

cybercrime 5 5 25 25 15 15 41 41 14 14 100 100

Helps in

setting

appropriate

prices 4 4 4 4 8 8 69 69 15 15 100 100

Promote faster

product

distribution 4 4 8 8 26 26 49 49 13 13 100 100

Used as a

promotion tool 5 5 8 8 7 7 65 65 15 15 100 100

The study also asked the respondents whether technology is a determinant to marketing.

Majority of the respondents at 41% agree that technology help reduce marketing

cybercrime, 69% of those surveyed agree that technology helps in setting appropriate

prices, 49% of those who took part in the poll agree that technology help promote faster

product distribution while 65% of the respondents indicated agree to the fact that

technology is used as a promotional tool.

Table 4.10: Model Summary (Marketing)

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .488a .238 .222 1.012

a. Predictors: (Constant), Product, Place

Table 4.11: ANOVA (Marketing)

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 31.012 2 15.506 15.127 .000b

Residual 99.428 97 1.025

Total 130.440 99

a.Dependent Variable: Cyber crime

b. Predictors: (Constant), Product, Place

36

Coefficient of determination (CD) (α) < 0.05 hence the existence of a strong statistically

significance relationship reduced cyber crime and product, reduced cyber crime and

placement 23.8%.

Table 4.12: Coefficientsa (Marketing)

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) .690 .495 1.393 .167

Place .127 .131 .106 .970 .335

Product .557 .145 .418 3.832 .000

a. Dependent Variable: Cyber crime

The study made the following hypothetical assumptions:

H0 - There is no significant relationship between reduced cyber crime and product,

reduced cyber crime and placement.

H1- There is a significant relationship between reduced cyber crime and product,

reduced cyber crime and placement.

The study findings reveal that there is a statistically significant relationship between

reduced cyber crime and product, reduced cyber crime and placement α < 0.05.

4.3.1 Other Determinants to Marketing

The respondents were also asked to mention other ways through which technology

influences marketing apart from the above listed. From the results of the survey the

respondents cited product presentation, image cleansing through positive public relations

in social media platforms like Facebook, Twitter, LinkedIn just to mention a few.

The respondents also indicated that technology helps in reducing costs attributed to

marketing. This was as a result of the world being a village and that most marketing is

executed through the use of technology. Technology is also seen for being responsible

for creation of additional Employment creation which in turns leads to improved

standards of living. Technology has also made networking easier through sharing of

marketing related resources globally hence improved productivity.

37

4.4 Technology as a Determinant to Procurement

The second study objective sought to identify the influence of technology on procurement

at Sasini Ltd. Table 4.6 shows that on a summated scale, majority (92%) agreed that

technology positively influence procurement processes at Sasini Limited. Majority

confirmed that technology ease procurement logistics (96%); facilitate online search for

supplies (96%); used as an inventory tool (100%); used to monitor procurement systems

(84%); and enhance flexibility through e-procurement (88%).

Table 4.13: Effects of Technology on Procurement

Variable Percentage (%)

SD D N A SA Ease logistics 0 4 0 69 27 Facilitate online search for supplies 0 4 0 71 25 Inventory management tool 0 0 0 45 55 Monitoring of procurement systems 0 8 8 48 36 Enhance flexibility through e-procurement 0 8 4 60 28

Summated Scale 0 2 6 55 37

ANOVA findings in Table 4.7 shows lack of statistically significant difference between

the groups (F (3, 96) = 1.595, p = .081. Hence, we can conclude that generally,

Table 4.14: One Way Analysis of Variance (Technology versus Procurement)

Sum of Squares df Mean Square F Sig.

Between Groups 2.024 3 0.675 1.595 .081

Within Groups 40.686 96 .423

Total 43.710 99

Table 4.15: One-Sample Statistics (Technology versus Procurement)

N

Mea

n

Std.

Deviatio

n

Std. Error

Mean

Ease logistics 100 4.19 .631 .063

Facilitate online search for supplies 100 4.17 .620 .062

Inventory management tool 100 4.55 .500 .050

Monitoring of procurement systems 100 4.12 .868 .087

Enhance flexibility through e-

procurement

100 4.08 .800 .080

38

Table 4.16: One-Sample Test (Technology versus Procurement)

Test Value = 4

t df Sig

. (2

-tai

led)

Mea

n D

iffe

ren

ce 95%

Confidence

Interval of the

Difference

Low

er

Upper

Ease logistics 3.012 99 .003 .190 .06 .32

Facilitate online search for

supplies 2.740 99 .007 .170 .05 .29

Inventory management

tool 11.000 99 .000 .550 .45 .65

Monitoring of procurement

systems 1.383 99 .170 .120 -.05 .29

Enhance flexibility through

e-procurement 1.000 99 .320 .080 -.08 .24

The study sought to validate the above findings on whether technology influences

procurement at Sasini Limited by using T-Test value of 4. The study established

technology eases procurement logistics with a mean of 4.19, facilitates online search of

suppliers with a mean of 4.17, used as an inventory tool scoring a mean of 4.12and

enhancing flexibility through e-procurement scoring a mean of 4.08. This inclination

towards 5 is a pointer that in deed technology is a determinant of procurement at Sasini

Limited.

Table 4.17: Frequency Distribution (Trading)

Category Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

Tota

l

F % F % F % F % F % F %

Ease logistics 0 0 4 4 0 0 69 69 27 27 100 100

Facilitate online

search for supplies 0 0 4 4 0 0 71 71 25 25 100 100

Inventory

management tool 0 0 8 8 8 8 48 48 36 36 100 100

Monitoring of

procurement systems 0 0 8 8 4 4 60 60 28 28 100 100

39

The study also sought to establish whether technology is a determinant to marketing.

Majority of the respondents at 69% agree that technology makes logistics easy, 71% of

the respondents also agree that in deed technology facilitates on line search for suppliers,

technology is also cited as being helpful in facilitating inventory management by most of

the respondents at 48% indicating agree with another 60% of the respondents indicating

that technology aids in the monitoring of procurement systems.

Table 4.18: Correlation Analysis between Technology and Procurement

METHOD Pearson’s (r)

Ease logistics .217**

Facilitate online search for supplies .923**

Inventory management tool .452**

Monitoring of procurement systems .801**

Sig. (2-tailed) 0.01

N 100

**Correlation is significant at the 0.01 level (2-tailed)

Bivariate Pearson correlation was performed to establish the relationship between

technology and procurement and the results showed that there is a statistically significant

relationship between technology and procurement. This can be illustrated by the variables

of procurement where ease logistics (r =.217**, p < 0.01); facilitate online search for

supplies (r =.923**, p < 0.01); inventory management tool (r =.452**, p < 0.01); and

monitoring of procurement systems (r =.827**, p < 0.01).

Table 4.19: Model Summary (Procurement)

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .801a .641 .638 .522

a. Predictors: (Constant), Flexibility

Table 4.20: ANOVAa (Procurement)

Model Sum of Squares df Mean Square F Sig.

1

Regression 47.813 1 47.813 175.180 .000b

Residual 26.747 98 .273

Total 74.560 99

a.Dependent Variable: level management

b. Predictors: (Constant), Flexibility

40

Coefficient of determination (CD) (α) < 0.05 hence the existence of a statistically

significance relationship between level of management and flexibility in trading 64.1%.

Table 4.21: Coefficientsa (Procurement)

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) .576 .273 2.110 .037

Flexibility .869 .066 .801 13.236 .000

a. Dependent Variable: level management

The study established the following hypothetical assumptions:

H0 - There is no significant relationship between level of management and flexibility in

trading.

H1- There is a significant relationship between level of management and flexibility in

trading.

The study findings reveal that there is a statistically significant relationship between level

of management and flexibility in trading α < 0.05.

4.4.1 Other Determinants to Procurement

The respondents were asked in the survey to list how else technology influenced

procurement separate from the ones listed herein. The results of the study showed that

majority of the respondents indicated that technology has ensured real time

communication with the suppliers hence reducing delays that used to be realized with the

absence of technology.

The respondents also stated that technology has reduced barriers that used to be created

by brokers that were used to inflating procurement costs hence eased ways of doing

business within and without.

4.5 Effect of Technology on Trading

The third study objective sought to establish the effects of technology on trading at Sasini

Limited. Table 4.8 shows that majority agreed that technology enhances customer

relationship great of very great extent (98%). Similar high score was recorded for

41

improvement of operational efficiency (98%); promotion of trading innovation (92%);

and increase efficiency (98%). Hence, in general 59% indicated that technology

positively influences trading to great extent while 37% indicated that it influences trading

to very great extent.

Table 4.22: Effects of Technology on Trading

Variable Percentage (%)

NE SE N GE VGE Enhance Customer relations 0 0 2 49 49

Improve Operational flexibility 0 0 2 51 47

Promote Trading Innovation 0 4 4 55 37 Increase Efficiency 0 0 2 46 52

Summated Scale 0 0 4 59 37

There was no statistically significant difference between departments as determined by

one-way ANOVA (F (3, 96) = 2.501, p =.064). Hence, we can conclude that generally,

technology positively influences trading at Sasini Limited.

Table 4.23: One Way Analysis of Variance (Technology versus Trading)

Sum of

Squares

df Mean Square F Sig.

Between

Groups

2.183 3 .728 2.501 .064

Within Groups 27.927 96 .291

Total 30.110 99

Table 4.24 One-Sample Statistics (Technology versus Trading)

N Mean

Std.

Deviation

Std.

Error

Mean

Enhance customer relation 100 4.47 .540 .054

Improve operational flexibility 100 4.45 .539 .054

Promote trading innovation 100 4.25 .716 .072

Increase efficiency 100 4.48 .611 .061

42

Table 4.25: One-Sample Test (Technology versus Trading)

Test Value = 4

t df

Sig

. (2

-tai

led)

Mea

n

Dif

fere

nce

95% Confidence Interval of

the Difference

Low

er

Upper

Enhance customer

relation

8.697 99 .000 .470 .36 .58

Improve operational

flexibility

8.350 99 .000 .450 .34 .56

Promote trading

innovation

3.492 99 .001 .250 .11 .39

Increase efficiency 7.856 99 .000 .480 .36 .60

Using the T – Test value of 4 it was established that technology increases efficiency

hence posting a mean of 4.48, customer relation is also enhanced by technology by

exhibited a mean of 4.47, flexibility of operations is also achieved through technology

by recording a mean of 4.45 and lastly trading innovation also influenced by technology

had a mean of 4. This linearity in mean is a confirmation that in deed technology

influences trading at Sasini Limited.

Table 4.26:Frequency Distribution (Trading)

Category

Non

Exte

nt

Som

e

Exte

nt

Neu

tral

Gre

at

Exte

nt

Ver

y

Gre

at

Exte

nt

Tota

l

F % F % F % F % F % F %

Enhance

Customer

relations 0 0 0 0 2 2 49 49 49 49 100 100

Improve

Operational

flexibility 0 0 0 0 2 2 51 51 47 47 100 100

Promote

Trading

Innovation 0 0 4 4 4 4 55 55 37 37 100 100

Increase

Efficiency

0 0 2 2 0 0 46 46 52 52 100 100

43

The study also sought to identify whether technology is a determinant to trading.

Majority of the respondents at 49% indicated that technology enhances customer

relations at very great extent, 51% of those surveyed indicated 51% that technology

improves operational flexibility, those who indicated great extent in favour of technology

being a determinant to trading stood at 55% while 52% of the respondents noted that

technology increases efficiency. This is a manifestation that in deed technology

influences trading at Sasini Limited.

Table 4.27 : Correlation Analysis of Technology and Trading

METHOD Pearson’s (r)

Enhance Customer relations .286**

Improve Operational flexibility .827**

Promote Trading Innovation .622**

Increase Efficiency .554**

Sig. (2-tailed) 0.01

N 100

**Correlation is significant at the 0.01 level (2-tailed)

Bivariate Pearson correlation was adopted to find out the relationship between

technology and trading. The method used was stepwise and again repeated using enter

and the results showed that there is a statistically significant relationship between

technology and trading. This can be illustrated by the variables of trading where trading

enhances customer relations (r =.286**, p < 0.01); improve operational flexibility (r

=.827**, p < 0.01); promote trading innovation (r =.622**, p < 0.01); and increase

efficiency (r =.554**, p < 0.01).

Table 4.28: Model Summary (Trading)

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .607a .368 .362 .572

a. Predictors: (Constant), Customer relation

44

Table 4.29: ANOVAa (Trading)

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 18.698 1 18.698 57.170 .000b

Residual 32.052 98 .327

Total 50.750 99

a. Dependent Variable: Innovation

b. Predictors: (Constant), Customer relation

Coefficient of determination (CD) (α) < 0.05 hence the existence of a statistically

significance relationship between innovation and enhancing customer relation 36.8%.

Table 4.30: Coefficientsa (Trading)

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) .655 .479 1.368 .174

Customer

relation .804 .106 .607 7.561 .000

a. Dependent Variable: Innovation

The study made the following hypothetical assumptions:

H0 - There is no significant relationship between innovation and enhancing customer

relation.

H1- There is a significant relationship between innovation and enhancing customer

relation.

The study findings reveal that there is a statistically significant relationship between

innovation and enhancing customer relation α < 0.05.

4.5.1 Other Determinants to Trading

Apart of the mentioned roles of technology on trading. The respondents were asked to

indicate how else technology influences trading. The results of the study noted that

majority of the respondents believed that technology has enabled benchmarking to be

realized and that businesses including Sasini Limited are now rarely exploited in terms of

45

pricing. Technology has also made it easy for players like Sasini Limited to trade across

the globe through private sales treaty arrangements without having to meet the buyers

physically since everything is transacted electronically.

4.6 Chapter Summary

The chapter analysed data on the basis of the research questions. The results of the data

analysis are then presented systematically in line with research questions presented in

section 1.4 of this study. The analysis aimed at highlighting descriptive characteristics of

the data collected as well as establishing relationships between the various variables at

play to help in understanding of the characteristics of the data collected. The next chapter

provides the conclusion, summary as well as the discussions and the recommendations.

46

CHAPTER FIVE

5.0 DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

The chapter is presented in four main sections. The sections include the study summary,

discussions, conclusions and recommendations. The sections are aligned to the research

questions raised in chapter one of the study.

5.2 Summary

The aim of the study was to establish the contribution of technology to the performance

of Sasini Limited. This study was achieved by tackling the following research questions:

How has the use of technology influenced marketing at Sasini Limited? Is the use of

technology a determinant to procurement as Sasini Limited? What is the effect of

technology to trading at Sasini Limited?

The study opted to use descriptive research design which was both qualitative and

quantitative. The study sampled employees of Sasini Limited drawn from its Head office

in Nairobi. The target population was 100 and all of them took part in the survey. This

study engaged the use of structured questionnaire which contained both open and closed

ended questions. The questionnaire was piloted using 5 respondents who were eventually

omitted from the final study. The pilot test was to test for accuracy and correct errors of

omission or commission or ambiguity that might have arisen prior to the actual study.

Statistical Package for Social Sciences (SPSS) helped in data analysis and finally study

findings presented as figures, tables, charts.

First, the study revealed that technology positively influence marketing (61%) by

assisting in reducing marketing cybercrime (55%); helps in setting appropriate prices

(84%); promote faster product distribution (52%); and is used as a promotional tool

(80%). There was no statistically significant difference between the groups (F (3, 96) =

1.970, p = .305.

Secondly, the study established that technology positively influence procurement

processes at Sasini Limited (92%). Majority confirmed that technology ease procurement

47

logistics (96%); facilitate online search for supplies (96%); used as an inventory tool

(100%); used to monitor procurement systems (84%); and enhance flexibility through e-

procurement (88%). The lacked statistically significant difference between the groups (F

(3, 96) = 1.595, p = .081.

Thirdly, the study showed that technology positively influence trading to great extent

(96%). Technology enhances customer relationship to great extent (98%). Similar high

score was recorded for improvement of operational efficiency (98%); promotion of

trading innovation (92%); and increase efficiency (98%). There was no statistically

significant difference between departments as determined by one-way ANOVA (F (3, 96)

= 2.501, p =.064).

5.3 Discussions

5.3.1 Influence of Technology on Marketing

The study established that technology positively influence marketing through several

routes. Most of the respondents who took part in the survey at 84% indicated that the use

of technology helps Sasini in setting appropriate prices for its products. This finding is in

line with previous findings. Yannopoulos (2011) acknowledges that in contrast to

traditional retailing where pricing research is deemed costly based on time and money,

the embracing of internet technology makes it possible for marketers to explore and

experiment pricing decisions both in real-time as well as with low costs.

Moreover, Baker, Marn and Zawada (2000) posit that the adoption of technology enables

it easy monitor consumer responses to prices and at the same time make suitable price

adjustments where necessary. Furthermore, Yannopoulos (2011) adds that the usage of

online pricing research ensures availability of information from multiple sources like

customer buying history being stored in databases and/or in cookies formed in customers’

computers and clickstream information. Pricing information assist managers fragment

their markets in new ways and uncover profitable customer groups. The findings is also in

line with Nyamba and Mlozi (2012) who while exploring the influence of mobile phones

on agribusiness in Tanzania noted that mobile phones have been used to make decisions

on the best time to sell crops and livestock and at what price. This was attributed to the

fact that farmers through the mobile telephony can get instant information on prices at

different market places. Thus the technology has been used to facilitate a greater export

48

orientation in agricultural practices and marketing. In the same breadth, Jensen (2007)

noted that mobile tephony have an ability to save farmers’ costs, by providing quick

access to agricultural information, communication with trade partners and opens new

market possibilities.

Further, Hanson (2000) notes that with the expansion of online suppliers as well as the

entry of large numbers of electronic retailers, have since provided online shoppers with

diverse choices advancing their bargaining power, removing the distance barrier exerting

downward pressure on prices. This somehow influences pricing strategies adopted by the

firm. Moreover, internet technology has given rise to online auction houses which are

seen as powerful methods of real-time pricing making it easier for buyers and sellers to

transact through an online bidding process that usually yields lower prices for products.

Secondly the study established that majority of the respondents at 52% felt that the use of

technology helps Sasini promote faster product distribution. This supports findings by

Schary and Backer (1976) which indicated that technology is responsible for effective

distribution practices that minimize costs, ensuring that benefits such as increased sales

and profits are gained. Hence, improves firm performance since multi-channel

distribution in supply management is said to ensure prompt response to the flow of

market place information, provide valuable data for the distribution systems like

customers’ orders, customers’ need for information.

Further, the findings support assertion by Thornton and White (2001) that technology

which is responsible for faster product delivery is an identifiable promoter of sales

growth, improved satisfaction of consumers target and cost reduction. Further, Musso

(2010) notes that the stimulus to innovation in distribution channels has been

distinguished as technology based, with reference to the opportunities offered by

innovation in information and communication technologies.

Still this is supported by Hashin (2011) who argues that technology has made it possible

for businesses to decide on the place of purchase or where and how to distribute the

product to the customer. Consumer would be satisfied if products are made available at

the right time, in the right place and in the right quantity. For example, oil marketers need

to strategically locate their stations so that motorists can easily access them whether in

town or out of town. For instance, since automotive fuels are demanded by motorists, its

49

supply should be at convenient locations for motorists (along busy highways or roads).

The stations do not have to be widely dispersed but should be guided by the volume of

traffic along a given road.

Thirdly, the study established that Sasini uses technology to enhance their promotional

activities. From the study findings majority of the respondents at 80% stated that

technology is used as a promotional tool by Sasini Limited. This is in line with arguments

by Alghamdi and Bach (2014) that technology has encouraged the development of

effective promotional activities and relationship marketing. Further the findings supports

assertion by Aaker (1991) and Keller (1993) that promotional activities such as brand-

oriented advertising (e.g., non-price advertising) strengthens brand image, causes greater

awareness, differentiates products and builds brand equity; and this is made possible

through the adoption of technology. This is further supported by Brady, Fellenz and

Brookes (2008) who alluded to the fact that technology has an impact on the main activity

of marketing strategies.

In general majority of the respondents overwhelmingly at 61% indicated that in deed

technology has in fact revolutionized the way promotions and marketing activities are

carried out in the current business environment. Owen and Humphrey (2014) observes

that with the emergence and popularity of social networking websites and social media

communication has become easier among individuals who can communicate in real time

with thousands of total strangers as with a single close friend. Thus, social networking

websites have also been a great equalizer, making it just as easy for an individual to build

or break a marketing brand as for a large corporation as well as making it easy for a large

corporation to mimic a sincere "grassroots" individual who lacks corporate motives.

Still Hoffman and Novak (2000) posit that development of the internet has provided a

platform for mass communication, customization and ease of referrals which reduces cost

of advertisement and enhances wider reach. Yannopoulos (2011) observes that online

search engines like Google and Yahoo adopt these recommendation systems to propose

appropriate products or services based on the keywords provided by users. The others

social media like whatsapp, facebook and youtube have been used to influence consumer

behavior. Faraz Farooq (2012) assert that the influence of any person close to an

individual has some impact on his life and this influence can also be seen in purchase

50

decision making. In this way technology when used appropriately have a major potential

of reaching more persons easily, influence purchasing decisions at a reduced cost.

5.3.2 Technology as a Determinant to Procurement

The study revealed that technology positively influence procurement processes at Sasini

Limited. The influence is release since the adopted technology ease procurement

logistics; facilitate online search for supplies; is used as an inventory tool; is used to

monitor procurement systems; and enhance flexibility through e-procurement. These

findings are in line with previous findings.

First, majority of the respondents at 92% believed that technology is able to ease

procurement logistics an argument that is supported by Rabinovich & Knemeyer (2006)

that a new breed of logistics-related technologies achieved through internet integration

helps internet sellers integrate with the myriad of available logistics firms to fulfill

customer orders more effectively and efficiently through the use of the technology. In the

system, logistics service providers establish relationships with both internet sellers and

third-party logistics providers and integrate the selling and flow processes throughout the

supply chain through the provision of what Rabinovich & Knemeyer (2006) call “hub

functionalities’ which function to link suppliers, manufacturers, sellers, and customers

throughout the supply chain. The main goal is to ease procurement logistics for enhanced

organizational performance.

This is further in line with Gurung (2012)who stated that an effective logistics frame

work require sound logistics information system technology which facilitates proper

information flow between inventory warehousing and transportation to realize the high

level of customer service. He explains that the ability to optimize the logistics cost and

service levels is affected by the logistics information system of the firm and its partners

e.g. firms with efficient logistics information systems provide better logistics services at a

lower cost and can have competitive advantage over its competitors.

Secondly, most of the respondents at 96% who participated in the research confirmed that

technology specifically the internet is used to facilitate online search of goods and

services. This is corroborated by Sherman (2001) who indicated that “a search engine is

significant to get people to your website for the first time visit but also for repeated visits

51

or return. Technology makes it possible just like other web-based search engines and the

internet to enable companies discover new potential clients. They allow existing

consumers to include the URL of the company or its advertisement site to their list of

favorites allowing them to easily return to the sites and check out new products,

announcements, and services.

The finding is further in line with Winter and Sundqvist (2009) who stated that websites

are deemed to first attract new and existing consumers with the aid of a high search

engine score which in turn increases the probability of it appearing on the first page of the

search engine. This is realized by having the right combination of search terms associated

with the company, its brands, its advertisements, sales promotions, and offers. A satisfied

consumer often contacts the company via their e-mail list, executes their purchases online

and above all places their delivery online. These web based tools are the main

technologies that improve the pull strategy of marketing (Winter & Sundqvist, 2009).

Kim & Shunk (2004) further supports the argument that the e-marketplace today is

getting mature and popular as internet has prevailed over the world. They emerged in

different industries, supporting the exchange of goods and services of different kinds,

with and for different types of actors, and are following different architectural principles.

Most observers have assumed that e-marketplace would come to dominate the e-business

landscape.

Consequently, there is need to know more about e-marketplace. On one hand, it can help

us understand the practical applications of e-procurement. On the other hand, some

definitions, characteristics or nature may represent a part of e-procurement. An e-

marketplace which entails the use of search engines effectively brings players together in

a real-time marketplace to perform basic exchange transactions, such as price and

production specifications, and strategic supply chain collaboration, as forecasting demand

and new product development (Kim & Shunk, 2004).

It is therefore the primary objectives are to streamline complex business processes and

gain efficiency. It is based on the notion of aggregating buyers and sellers in a single

contact point to allow participant organizations to enjoy greater economies of scale and

liquidity; and to buy or sell anything easily, quickly and economically (Wamego, 2005).

E-marketplaces brought about by technology also enable companies to eliminate

52

geographical barriers, and expand globally to reap profits in new markets that were once

out of reach (Eng, 2004).

Thirdly, the study results revealed that 100% of the respondents noted that technology is

used as an inventory management tool and as a monitoring and tool supports, an

arguments supported by Lawson (2008) that technology can be used as measurement

system facilitate the assignment of metrics to where they would be most appropriate. That

is, for effective performance measurement, measurement goals must represent the goals

of the function. Furthermore, it supports Johnson (2008) who posits that good inventory

management in any organization saves the organization from poor quality production,

disappointment of seasoned customers, loss of profit and good social responsibility. This

is done by adopting appropriate technologies for timely delivery of materials and

distribution of finished goods. If inventory management is not adequately maintained,

production cannot meet the aspirations of customers which are loss of revenue to the

organization. Right from procurement to the time of processing, quality of raw material is

the chief determinant of the productive efficiency of any manufacturing concern.

Of important is that 84% of the respondents pointed out that technology enable effective

inventory management systems to assess performance in the entire length of the

organization’s procurement function, from suppliers through internal processes to

customers via technology. The measures are divided in five major categories which

include cost measures, quality measures, time measures, supplier performance measures

and customer satisfaction measures. The metrics that are used in performance

measurement should be those that truly capture the essence of the procurement function

performance (Lawson, 2008).

In summation, the other notable influenced of technology on procurement highlighted in

the study include technology being a propellant to real time communication with the

suppliers hence reducing delays that used to be realized with the absence of technology.

Reduction of trade barriers hence ease of doing business across the globe as a result of e-

procurement connectivity.

5.3.3 Effect of Technology on Trading

The third study objective sought to examine the effect of technology on trading. The

study revealed that technology positively influence trading at Sasini Limited. The study

53

affirms that technology enhances customer relationship; improve operational efficiency;

promote of trading innovation; and increase efficiency.

These findings are in line with earlier studied. First, majority of the respondents at 98%

felt that technology enhances customer relation at very great extent. This findings is line

by Swift (2000) who indicated that customer relation management (CRM) technology

enhance understanding of the customer behavior through intense communication with

him/her to improve the performance which is represented in attracting the customer,

keeping him/her and increasing his/her loyalty and profitability. The study observed that

this value is created through providing good chances to use data and information to

understand customers and provide them with value. Consequently, this requires the

integration of customers, individuals and marketing abilities, which happens through

information, technology and applications (Payne & Frow, 2005).

The findings also supports Parvatiyar and Sheth (2002) who posit that customer

relationship management technology can be used as a comprehensive strategy that

includes the process of acquiring certain customers, keeping them and cooperating with

them to create a distinguished value for both the company and the customer. This strategy

requires integrating the functions of marketing, sales, customer service and exposition

chain so as to achieve the highest competence and efficiency in delivering value to the

customer through technology. Thus, customer relationship management technology can

be used as a strategy with a main goal of delivering a distinguished value to the customer

through improving the marketing productivity.

On the other hand Stone & Findlay (2001) noted that customer relation carry out a lot of

information about the customer from various resources and keeping it in order to divide

the territories, analyze and reuse which eventually helps in trade. Further, Parvatiyar &

Sheth, (2002) pointed out that customer relation being a comprehensive strategy that

includes the process of acquiring certain customers, keeping them and cooperating with

them to create a distinguished value for both the company and the customer. This strategy

requires integrating the functions of marketing, sales, customer service and exposition

chain so as to achieve the highest competence and efficiency in delivering value to the

customer through technology.

54

The above findings is further corroborated by the works of Bain (2012) and Nielsen

(2013) that the speed with which technology spurs growth and development as witnessed

with the increasing adoption of mobile digital devices globally like in the case of smart

phones and tablets, have a insightful transforming influence on consumer behavior in

terms of relation as well as on retail businesses at large. Therefore there is need to keep

pace with technological developments as well as innovation plays a significant role for

businesses at large. For example, mobile digital technologies aids develop ads as well as

new on-the-go services that help in customer relation. This ultimately ensures that

relationships between customers and retailers go beyond the physical store into the digital

sphere. Retailers are thus perceived as being indivisible part of digital connections

amongst customers themselves by through creation and participation on social media

(Bain, 2012) and (Nielsen, 2013).

Secondly, most of the respondents at 98% indicated that technology enhances efficiency

and effectiveness at great extent. This thought is also shared by Mukhamad and Kiminami

(2011); PlaBarber and Alegre (2007) who indicated that effective use of technology

enhances faster order reach. They assert that the longer the order reaches the customer the

less effective the delivery services on the eyes of the customer will be. Therefore,

technological innovation in distribution channel is paramount to enhance firm

performance. However, the impact of such innovation on firm performance would be less

if it does not improve the effectiveness of distribution channel functions. For instance, if a

customer expects a delivery of an order is on a two week time; then, the delivery service

is considered effective once the order arrives in less than two weeks or on the last day of

the delivery time (Rhea et al., 1987). This study is further confirmed by Adair (2004) who

opines that an innovative firm has bank of ideas and that according to Skarzynski &

Gibson (2008), an innovative process is often classified into two distinct sections where

one is tasked with the generation of the original idea, thought or concept while the second

phase deals with the implementation and marketing of the innovation all which is realized

through the adoption of technology.

Studies by Crossan & Apaydin (2010) also highlights that innovation is creation or

acceptance, adaptation and utilization of a value - added novelty in trade and industry

spheres, regeneration and expansion of product, services and markets, making of new

ways of product development and establishing new demands that is the main player

55

between the individual and organizational knowledge attributed to technological

knowhow which precipitates trade hence improving performance.

Finally, results of the survey highlighted that majority of the respondents at 92% noted

that technology aid promotion of trading innovation at great extent. This finding is in line

with the works of Bonn (2000); Rosli and Sidek (2013) who indicated that technological

adoption has ensured companies’ abilities are anchored on their performance or growth.

This is further supported by Hyytinen and Toivanen (2003) who posited that there is

positive relationship between innovation and growth of the firms if there is a constant

supply of finances in more techno savvy world. Rosli and Sidek, (2013); Salim and

Sulaiman (2011) extends this line of thought by asserting that in the presence of

innovation, the overall firm performance would enhance This shows that innovation is

critical for the growth of the organization in terms of its sales, market penetration,

profitability and sustainability of organizations especially for small and medium

enterprises (Hyytinen & Toivanen, 2003). Hence most firms would readily seek and adopt

technologies if doing so is within their reach and is profitable for the business.

In summation, the majority of the respondents at 59% based on the study findings

indicated that technology positively influences trading to great extent while 37%

indicated that it influences trading to very great extent. The study also revealed that some

of the other ways through which technology influences trading is through benchmarking

on prices hence reduction in exploitation by third parties. Technology has also made it

easy for players like Sasini Limited to trade across the globe through private sales treaty

arrangements without having to meet the buyers physically since everything is transacted

electronically.

5.4 Conclusions

5.4.1 Influence of Technology on Marketing

In conclusion, the study established that technology positively influence marketing. This

influence is achieved since technology is used to reduce marketing cybercrime; helps in

setting appropriate prices; promote faster product distribution; and is used as a

promotional tool.

56

5.4.2 Technology as a Determinant to Procurement

Secondly, the study concludes that technology positively influence procurement processes

at Sasini Limited. The positively influence is realized since the adopted technology ease

procurement logistics; facilitate online search for supplies; used as an inventory tool; used

to monitor procurement systems ; and enhance flexibility through e-procurement.

5.4.3 Effect of Technology on Trading

Finally, the study concludes that technology positively influence trading at Sasini

Limited. The study affirms that technology enhances customer relationship; improve

operational efficiency; promote of trading innovation; and increase efficiency.

5.5 Recommendations

5.5.1 Recommendations for Improvement

5.5.1.1 Influence of Technology on Marketing

The study therefore recommendations than since technology helps in reducing marketing

crime, setting appropriate prices, promotes faster product distribution and is used as

promotional tool therefore it is important for agribusiness firms like Sasini Limited to

invest in sophisticated technology so as to reduce costs associated with cybercrime and

related effects and instead maximize returns generated through marketing.

5.5.1.2 Technology as a Determinant to Procurement

Procurement has been made simpler with the modernization of the industry therefore

organizations should continue to invest in appropriate technologies to ensure real time

processing and business transactions and hence reduce the cost of doing businesses within

and without.

5.5.1.3 Effect of Technology on Trading

The study recommends strategic adoption of technology by the agribusiness firms to

strengthen the management of existing customer relations, create flexibility in operations,

continuously invest in innovation and above all explore trade related activities so as to

increase revenue.

57

5.5.2 Recommendations for Further Studies

This study was only conducted in Sasini as agribusiness with scope limited to the staff

based at the head office is Nairobi hence not a good representation. Therefore, there is

need to carry out the same study in other subsidiaries of Sasini Limited or other

agribusiness companies like Kakuzi Limited and compare the result.

58

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APPENDICES

Appendix I: Cover Letter

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA

P.O. BOX 14634, 00800.

NAIROBI.

DATE:

Dear Respondent,

I am student at the United States International University- Africa currently pursuing a

Master of Business Administration with a concentration in Strategic Management. I am

carrying out a research on the contribution of technology to the performance of Sasini

Limited. Please about 7 minutes of your time to fill the attached questionnaire.

Kindly note that the responses will be treated with utmost confidentiality and that

confidentiality of the respondents will be guaranteed. Respondents will be treated as

anonymous.

Thank you in advance.

Yours sincerely,

Sharon Mweru

65

Appendix II: Questionnaire

PART I: GENERAL INFORMATION

Note: This is an academic exercise and all information collected from respondents will be treated

with strict confidentiality.

General Information

Kindly answer all the questions either by ticking in the boxes or writing in the spaces

provided. Note that the evaluation will be considered incomplete if you do not answer all the

questions

1) Department?

Human Resources Finance Marketing Procurement

2) How long have you worked for Sasini Limited?

Less than 5 years 6-11 years 12-17 years 18-23 years Over 24 years

3) What is your highest level of education?

High School Secondary

Tertiary College/University Other (Kindly specify)

______________________

4) What is your salary range?

5,000 – 20,000 KES

21,000 – 40,000 KES

41,000 – 60,000 KES

61,000 – 80,000 KES

81,000 – 100,000 KES

Above 100,000 KES

5) Have you ever worked in any other agribusiness firm?

Yes

No

b) If yes, (Kindly Specify) …………………………………………………………….

66

PART II: THE INFLUENCE OF TECHNOLOGY ON MARKETING

Kindly tick the numeric value corresponding to your personal opinion with regard to the influence

of technology on marketing at Sasini Limited.

Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

Reduce marketing cybercrime

Helps in setting appropriate prices

Promote faster product distribution

Used as a promotion tool

Based on your own personal opinion, how else does technology influence marketing?

________________________________________________________________________

________________________________________________________________________

PART III: TECHNOLOGY AS A DETERMINANT TO PROCUREMENT

5) Please tick the numeric value corresponding to your personal opinion for each statement

with regard to how technology influences procurement at Sasini Limited.

Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

Ease logistics

Facilitate online search for supplies

Inventory management tool

Monitoring of procurement systems

Enhance flexibility through e-procurement

What are other determinants to procurement?

________________________________________________________________________

________________________________________________________________________

67

________________________________________________________________________

PART IV: EFFECT OF TECHNOLOGY ON TRADING

6) Based on your personal judgment on how technology impact on trading at Sasini. Kindly

tick the numeric value corresponding to your opinion.

No

Ex

ten

t

So

me

Ex

ten

t

Neu

tral

Gre

at

Ex

ten

t

Ver

y

Gre

at

Ex

ten

t

Enhance Customer relations

Improve Operational flexibility

Promote Trading Innovation

Increase Efficiency

How else does technology affecting trading at Sasini Limited?

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Thanks for taking time to give your feedback