Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption

Charles Momanyi; Maengwe Orwaru; Lameck Ondieki Agasa; Ronald Tombe

doi:doi:10.11648/j.ijber.20251405.13

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Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption

Charles Momanyi^*

, Maengwe Orwaru

, Lameck Ondieki Agasa

, Ronald Tombe

Published in International Journal of Business and Economics Research (Volume 14, Issue 5)

Received: 6 September 2025 Accepted: 4 October 2025 Published: 30 October 2025

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Abstract

Small and medium-sized enterprises (SMEs) are critical to Kenya’s economy, representing 98% of all businesses and contributing 33.8% to GDP. Despite this, many rural SMEs face persistent challenges, including limited market access, inadequate financing, and slow adoption of digital technologies. This study examined the determinants of adopting multiple digital payment methods among SMEs in Kisii and Nyamira Counties, with a focus on digital transformation strategies and e-commerce awareness. A mixed-methods exploratory design was employed. In the qualitative phase, interviews and focus group discussions were conducted to inform the development of a digital platform prototype. In the quantitative phase, survey data were collected from 104 SMEs, and chi-square tests and logistic regression analyses were applied to identify factors influencing digital payment adoption. The findings revealed that type of business, business location, and e-commerce awareness were significantly associated with adoption of multiple digital payment systems, with e-commerce awareness emerging as the strongest predictor (p < 0.001). Demographic characteristics such as age, gender, and capital base were not statistically significant. The results highlight that SMEs with higher e-commerce awareness are more likely to embrace diversified payment methods, suggesting that digital market knowledge is a key enabler of broader technological adoption. The study concludes that targeted e-commerce literacy training, improved digital infrastructure, and affordable technology solutions are necessary to strengthen SME digital transformation in rural settings. These interventions can enhance financial inclusion, expand market opportunities, and contribute to sustainable SME growth. The findings provide insights for policymakers, development partners, and SME support organizations seeking to promote inclusive digital economies in Kenya and similar emerging market contexts.

Published in	International Journal of Business and Economics Research (Volume 14, Issue 5)
DOI	10.11648/j.ijber.20251405.13
Page(s)	211-224
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Digital Transformation, E-commerce Awareness, SME Sustainability, SME Growth, Rural Enterprises

References

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Momanyi, C., Orwaru, M., Agasa, L. O., Tombe, R. (2025). Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. International Journal of Business and Economics Research, 14(5), 211-224. https://doi.org/10.11648/j.ijber.20251405.13

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ACS Style

Momanyi, C.; Orwaru, M.; Agasa, L. O.; Tombe, R. Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. Int. J. Bus. Econ. Res. 2025, 14(5), 211-224. doi: 10.11648/j.ijber.20251405.13

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AMA Style

Momanyi C, Orwaru M, Agasa LO, Tombe R. Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. Int J Bus Econ Res. 2025;14(5):211-224. doi: 10.11648/j.ijber.20251405.13

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@article{10.11648/j.ijber.20251405.13,
  author = {Charles Momanyi and Maengwe Orwaru and Lameck Ondieki Agasa and Ronald Tombe},
  title = {Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption
},
  journal = {International Journal of Business and Economics Research},
  volume = {14},
  number = {5},
  pages = {211-224},
  doi = {10.11648/j.ijber.20251405.13},
  url = {https://doi.org/10.11648/j.ijber.20251405.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20251405.13},
  abstract = {Small and medium-sized enterprises (SMEs) are critical to Kenya’s economy, representing 98% of all businesses and contributing 33.8% to GDP. Despite this, many rural SMEs face persistent challenges, including limited market access, inadequate financing, and slow adoption of digital technologies. This study examined the determinants of adopting multiple digital payment methods among SMEs in Kisii and Nyamira Counties, with a focus on digital transformation strategies and e-commerce awareness. A mixed-methods exploratory design was employed. In the qualitative phase, interviews and focus group discussions were conducted to inform the development of a digital platform prototype. In the quantitative phase, survey data were collected from 104 SMEs, and chi-square tests and logistic regression analyses were applied to identify factors influencing digital payment adoption. The findings revealed that type of business, business location, and e-commerce awareness were significantly associated with adoption of multiple digital payment systems, with e-commerce awareness emerging as the strongest predictor (p < 0.001). Demographic characteristics such as age, gender, and capital base were not statistically significant. The results highlight that SMEs with higher e-commerce awareness are more likely to embrace diversified payment methods, suggesting that digital market knowledge is a key enabler of broader technological adoption. The study concludes that targeted e-commerce literacy training, improved digital infrastructure, and affordable technology solutions are necessary to strengthen SME digital transformation in rural settings. These interventions can enhance financial inclusion, expand market opportunities, and contribute to sustainable SME growth. The findings provide insights for policymakers, development partners, and SME support organizations seeking to promote inclusive digital economies in Kenya and similar emerging market contexts.
},
 year = {2025}
}

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TY  - JOUR
T1  - Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption

AU  - Charles Momanyi
AU  - Maengwe Orwaru
AU  - Lameck Ondieki Agasa
AU  - Ronald Tombe
Y1  - 2025/10/30
PY  - 2025
N1  - https://doi.org/10.11648/j.ijber.20251405.13
DO  - 10.11648/j.ijber.20251405.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 211
EP  - 224
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20251405.13
AB  - Small and medium-sized enterprises (SMEs) are critical to Kenya’s economy, representing 98% of all businesses and contributing 33.8% to GDP. Despite this, many rural SMEs face persistent challenges, including limited market access, inadequate financing, and slow adoption of digital technologies. This study examined the determinants of adopting multiple digital payment methods among SMEs in Kisii and Nyamira Counties, with a focus on digital transformation strategies and e-commerce awareness. A mixed-methods exploratory design was employed. In the qualitative phase, interviews and focus group discussions were conducted to inform the development of a digital platform prototype. In the quantitative phase, survey data were collected from 104 SMEs, and chi-square tests and logistic regression analyses were applied to identify factors influencing digital payment adoption. The findings revealed that type of business, business location, and e-commerce awareness were significantly associated with adoption of multiple digital payment systems, with e-commerce awareness emerging as the strongest predictor (p < 0.001). Demographic characteristics such as age, gender, and capital base were not statistically significant. The results highlight that SMEs with higher e-commerce awareness are more likely to embrace diversified payment methods, suggesting that digital market knowledge is a key enabler of broader technological adoption. The study concludes that targeted e-commerce literacy training, improved digital infrastructure, and affordable technology solutions are necessary to strengthen SME digital transformation in rural settings. These interventions can enhance financial inclusion, expand market opportunities, and contribute to sustainable SME growth. The findings provide insights for policymakers, development partners, and SME support organizations seeking to promote inclusive digital economies in Kenya and similar emerging market contexts.

VL  - 14
IS  - 5
ER  -

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Author Information

Charles Momanyi

Department of Business Administration, Kisii University, Kisii, Kenya

Contact Email

http://orcid.org/0009-0004-5762-3441
Maengwe Orwaru

Department of Business Administration, Kisii University, Kisii, Kenya

Contact Email

http://orcid.org/0009-0002-1890-0982
Lameck Ondieki Agasa

Department of Community Health and Behavioral Sciences, Kisii University, Kisii, Kenya

Contact Email

http://orcid.org/0000-0002-3740-8865
Ronald Tombe

Department of Computing, Kisii University, Kisii, Kenya

Contact Email

http://orcid.org/0000-0002-0765-2947

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APA Style

Momanyi, C., Orwaru, M., Agasa, L. O., Tombe, R. (2025). Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. International Journal of Business and Economics Research, 14(5), 211-224. https://doi.org/10.11648/j.ijber.20251405.13

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ACS Style

Momanyi, C.; Orwaru, M.; Agasa, L. O.; Tombe, R. Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. Int. J. Bus. Econ. Res. 2025, 14(5), 211-224. doi: 10.11648/j.ijber.20251405.13

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AMA Style

Momanyi C, Orwaru M, Agasa LO, Tombe R. Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption. Int J Bus Econ Res. 2025;14(5):211-224. doi: 10.11648/j.ijber.20251405.13

Copy | Download

@article{10.11648/j.ijber.20251405.13,
  author = {Charles Momanyi and Maengwe Orwaru and Lameck Ondieki Agasa and Ronald Tombe},
  title = {Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption
},
  journal = {International Journal of Business and Economics Research},
  volume = {14},
  number = {5},
  pages = {211-224},
  doi = {10.11648/j.ijber.20251405.13},
  url = {https://doi.org/10.11648/j.ijber.20251405.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20251405.13},
  abstract = {Small and medium-sized enterprises (SMEs) are critical to Kenya’s economy, representing 98% of all businesses and contributing 33.8% to GDP. Despite this, many rural SMEs face persistent challenges, including limited market access, inadequate financing, and slow adoption of digital technologies. This study examined the determinants of adopting multiple digital payment methods among SMEs in Kisii and Nyamira Counties, with a focus on digital transformation strategies and e-commerce awareness. A mixed-methods exploratory design was employed. In the qualitative phase, interviews and focus group discussions were conducted to inform the development of a digital platform prototype. In the quantitative phase, survey data were collected from 104 SMEs, and chi-square tests and logistic regression analyses were applied to identify factors influencing digital payment adoption. The findings revealed that type of business, business location, and e-commerce awareness were significantly associated with adoption of multiple digital payment systems, with e-commerce awareness emerging as the strongest predictor (p < 0.001). Demographic characteristics such as age, gender, and capital base were not statistically significant. The results highlight that SMEs with higher e-commerce awareness are more likely to embrace diversified payment methods, suggesting that digital market knowledge is a key enabler of broader technological adoption. The study concludes that targeted e-commerce literacy training, improved digital infrastructure, and affordable technology solutions are necessary to strengthen SME digital transformation in rural settings. These interventions can enhance financial inclusion, expand market opportunities, and contribute to sustainable SME growth. The findings provide insights for policymakers, development partners, and SME support organizations seeking to promote inclusive digital economies in Kenya and similar emerging market contexts.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Digital Transformation and SME Growth: Understanding the Role of E-Commerce Awareness and Technology Adoption

AU  - Charles Momanyi
AU  - Maengwe Orwaru
AU  - Lameck Ondieki Agasa
AU  - Ronald Tombe
Y1  - 2025/10/30
PY  - 2025
N1  - https://doi.org/10.11648/j.ijber.20251405.13
DO  - 10.11648/j.ijber.20251405.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 211
EP  - 224
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20251405.13
AB  - Small and medium-sized enterprises (SMEs) are critical to Kenya’s economy, representing 98% of all businesses and contributing 33.8% to GDP. Despite this, many rural SMEs face persistent challenges, including limited market access, inadequate financing, and slow adoption of digital technologies. This study examined the determinants of adopting multiple digital payment methods among SMEs in Kisii and Nyamira Counties, with a focus on digital transformation strategies and e-commerce awareness. A mixed-methods exploratory design was employed. In the qualitative phase, interviews and focus group discussions were conducted to inform the development of a digital platform prototype. In the quantitative phase, survey data were collected from 104 SMEs, and chi-square tests and logistic regression analyses were applied to identify factors influencing digital payment adoption. The findings revealed that type of business, business location, and e-commerce awareness were significantly associated with adoption of multiple digital payment systems, with e-commerce awareness emerging as the strongest predictor (p < 0.001). Demographic characteristics such as age, gender, and capital base were not statistically significant. The results highlight that SMEs with higher e-commerce awareness are more likely to embrace diversified payment methods, suggesting that digital market knowledge is a key enabler of broader technological adoption. The study concludes that targeted e-commerce literacy training, improved digital infrastructure, and affordable technology solutions are necessary to strengthen SME digital transformation in rural settings. These interventions can enhance financial inclusion, expand market opportunities, and contribute to sustainable SME growth. The findings provide insights for policymakers, development partners, and SME support organizations seeking to promote inclusive digital economies in Kenya and similar emerging market contexts.

VL  - 14
IS  - 5
ER  -

Copy | Download