Determinants of online marketing adoption among small and medium enterprises in Nakawa industrial area, Uganda

Abstract

This study examined the determinants for online marketing adoption among Small and Medium Enterprises (SMEs) in Nakawa Industrial Area. Specifically, the study examines the relationship between perceived usefulness and online marketing adoption, perceived ease of use and online marketing adoption, as well as the moderating role of attitude in this relationship. The study adopted a cross sectional survey. The study population comprised of 246 SME firms and a sample of 150 firms were drawn using systematic sampling. Data were collected through surveys administered to SME owners and managers, and interviews were conducted with some SME owners. The study analyzed data using descriptive, correlations and regression analyses. The findings reveal that both perceived usefulness and perceived ease of use are significantly related and influence online marketing adoption among SMEs. Additionally, it was found out that attitude plays a mediating role between perceived ease of use and online marketing adoption while for perceived usefulness, it does not have a statistically significant role. These findings underscore the importance of considering factors such as perceived benefits, ease of use, and individual attitudes in promoting the adoption of online marketing strategies among SMEs in Uganda. The study extends the following recommendations to those seeking to enhance SME competitiveness and sustainability in the digital age; prioritizing investment in digital skills development for SME owners and employees to enhance their proficiency in online marketing strategies, selecting online marketing platforms and tools that are user-friendly and intuitive to use, considering factors such as ease of navigation, simplicity of interface, and availability of support resources and reflecting on the success stories and testimonials from other SMEs that have successfully implemented online marketing strategies.