ANALYSIS OF INFORMATION TECHNOLOGY ON THE
PERFORMANCE OF ONLINE BUSINESSES IN UGANDA: A CASE
STUDY OF JUMIA MARKET UGANDA
BY
AINEMBABAZI PRIMAH
CSD/M/032/JAN/2021
A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE AWARD OF DIPLOMA
IN COMPUTER SCIENCE OF YMCA COMPREHENSIVE INSITITUTE
DECLARATION
I AINEMBABAZI PRIMAH do hereby declare that the content of this research proposal is my
original work researched upon as a result of intensive research, consultations and security.
Therefore it has never been submitted or presented to any other institution for any academic award.
Signature ………………………………………… Date: ………………………………….
i
APPROVAL
This is to certify that AINEMBABAZI PRIMAH prepared this research proposal under my
supervision
MR. OTUBA JOHN JOSEPH
SUPERVISOR
Signature ………………………………………… Date: ………………………………….
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TABLE OF CONTENTS
DECLARATION ........................................................................................................................... i
APPROVAL .................................................................................................................................. ii
TABLE OF CONTENTS ............................................................................................................ iii
CHAPTER ONE: Introduction ................................................................................................... 1
1.1 BACKGROUND STUDY ........................................................................................................ 1
1.2 STATEMENT OF THE PROBLEM ........................................................................................ 4
1.3 PURPOSE OF THE STUDY .................................................................................................... 4
1.4 OBJECTIVES OF THE STUDY .............................................................................................. 4
1.4.1 GENERAL OBJECTIVES OF THE STUDY ....................................................................... 4
1.4.2 SPECIFIC OBJECTIVES ...................................................................................................... 5
1.5 RESEARCH QUESTIONS ...................................................................................................... 5
1.6 HYPOTHESIS .......................................................................................................................... 5
1.7 SCOPE OF THE STUDY ......................................................................................................... 5
1.7.1 TIME SCOPE ........................................................................................................................ 5
1.7.2 SAMPLE SCOPE .................................................................................................................. 5
1.7.3 GEOGRAPHICAL SCOPE ................................................................................................... 5
1.8 SIGNIFICANCY OF THE STUDY ......................................................................................... 6
1.9 LIMITATIONS OF THE STUDY ........................................................................................... 6
CHAPTER TWO: LITERATURE REVIEW ............................................................................ 7
2.0 Introduction ............................................................................................................................... 7
2.1. Impact of information technology on the performance of online businesses in Uganda. ....... 7
2.2. Benefits of E-Commerce or online business.......................................................................... 11
2.3. Challenges faced by online companies in Uganda ................................................................ 12
2.4. Summary ................................................................................................................................ 13
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CHAPTER THREE: Methodology .......................................................................................... 14
3.1Itroduction ................................................................................................................................ 14
3.2. Research design ..................................................................................................................... 15
3.2.1 Literature Survey ....................................................... Ошибка! Закладка не определена.
3.2.2 The case study design ................................................ Ошибка! Закладка не определена.
3.3 Population ............................................................................................................................... 15
3.4 Sampling ................................................................................................................................. 16
3.5 Description of data collection methods .................................................................................. 16
3.6.1 Interview method ................................................................................................................. 17
3.6.2 Observation .......................................................................................................................... 17
3.6.3 Questionnaire ....................................................................................................................... 17
3.10 ETHICAL CONSIDERATIONS .......................................................................................... 18
3.11 Conclusion .................................................................. Ошибка! Закладка не определена.
REFERENCES............................................................................................................................ 18
APPENDIX 1 .......................................................................... Ошибка! Закладка не определена.
INTERVIEW GUIDE ................................................................................................................... 21
Appendix 2: Questionnaire ........................................................................................................... 22
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CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter contains the background of the study, limitations of the study, significance of the
study, scope of the study, hypothesis, research questions, objectives of the study, purpose of the
study and the statement of the problem
1.1 BACKGROUND OF THE STUDY
In order to study information technology, it is absolutely essential to define information
technology, as well as to identify and investigate the nature of information technology as a new
clue for researchers. Within the literature of information technology, there is not any generally
accepted information technology definition, since lots of definitions of information technology
have been used in different studies (ChooWouOnn and Shahryar Sorooshian, 2013).
Information Technology has become an integral part of the modern day societies and economies
across the world. It has led to unprecedented transformations in the business world,
communication, social interactions, research and education, governance, philanthropic pursuits
and many other spheres of life (St.Amour, 2012). The Internet World Stats 2012 estimated the
global internet users to be about 2.4 billion, with developed nations having significantly higher
internet penetration rates.
The advent of information technology saw entrepreneurs all over the world capture ideas and
infuse technological innovations to create new products, services and business models
(Mahadevan, 2000; Hasan& Harris, 2009). Information technology phenomenon also gave rise to
purely internet-based businesses now commonly referred “Internet based companies” or “online
company” a name that is applied to a company that conducts ‘most’ of its business online, since
such businesses also engage physical logistic systems (Schultz, 2009). The convenience of online
shopping is a compelling allure to consumers who value the ease and efficiency of purchasing
some services online such as travel packages and tickets. A global survey conducted by Nielson.
Global (2010) found that some products bought online are universal. The leading products are
books, clothing/accessories/shoes, airline ticket reservations, electronic equipment, tours/hotel
reservations and cosmetics/nutrition supplies. Interestingly, online-only shops (such as
Amazon.com) have the greatest appeal with one-third of online consumers preferring them to sites
that also have traditional “brick and mortar” stores and those that allow consumers to select
products from many different online stores.
The concept of information technology has played a central role in ‘virtual global organization’.
The virtual business is a revolution to contend, creating new business opportunities and challenges
(Nath, 2013). Electronic commerce is beginning to play a central role in fulfilling the daily needs
of people. A particularly insightful view was expressed that “Spread of Ecommerce shall be
directly related to growth of internet in the country.” (Mehta, 2001).
There is no consensus on the exact definition of e-commerce with a number of different definitions
being used in different contexts. A report by United Nations Conference on Trade and
Development [UNCTD] (2000) pointed to the existence of six different mediums of electronic
commerce (e-commerce): telephone, fax, television, electronic payment and money transfer
systems, Electronic Data Interchange (EDI) and Internet. Indeed, it can be argued that the rapid
evolvement and the increasingly vital role of the internet have resulted in much of the confusion
on e-commerce. E-commerce has been described as conducting commercial activities via
electronic media, and most commonly, the internet (Kinuthia&Akinnusi, 2014).
Nath (2013) defined e-commerce as the buying and selling of goods and services over the World
Wide Web or internet. It is apparent from the variety of definitions offered that the key attributes
of e-commerce relate to all technology mediated exchanges between organizations and a third
party, different forms of electronic media are engaged at some point to facilitate such exchanges
(Kinuthia&Akinnusi, 2014; Litondo&Ntale, 2013; Wanjau, Macharia, N.,&Ayodo, M. A, 2012
they are different models of e-commerce some of the most common are discussed here.
Business-to-Business (B2B e-commerce) refers to the full spectrum of activities that can occur
between two organizations and which is by far the most common form of e-commerce (Harris,
2000; Oracle, 2012; Nath, 2013).
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Businesses-to-Consumers (B2C e-commerce) e-commerce involves retailing transactions between
organizations and individual shoppers for example the online retailers Amazon direct and
Target.com. Consumer-to-Consumer (C2C e-commerce) involves transactions between
consumers, the e-commerce website serves to facilitate the transaction, and good examples of such
auction sites in Uganda is www.jumia.ug .Consumer-to- Business (C2B e-commerce) allows
consumers to sell products and services to businesses, examples include freelancer sites such as
Task Rabbit and Monster.com. In addition to the models discussed so far, there is e-governance
which an umbrella entity used to describe transactions between the government and other entities,
such as consumer, business organizations, and other governments. The e-commerce revolution is
far from over, newer models and opportunities are likely to arise as internet technologies continue
to evolve
(Fox,2000; Majmudar&Prabhu, 2000).In Uganda, JUMIA, KILIMALL, OLX,DONDOLO SHOP
are among the new Internet Caesars that appear to be conquering this new cyber business world
by building an empire in their respective online product or service categories in Uganda.
JUMIA MARKET This is an online retailer in Africa that was established in May 2012 with the
aim and vision to become the one-stop shop for retail in Africa with implementation of best
practices both online and offline.Jumia is the largest online retail store in Uganda with an average
delivery time of 2-5 days.Initially Jumia started with 3 employees, however presently has staff
strength of over 3000 young and entrepreneurial people including over 750 man strong customer
service team available 7 days a week. Jumia set-up the 1st e-commerce academy, the Jumia
Academy, building young entrepreneurs pioneering various aspects of business in Africa. Jumia is
the first African company to win the world retail awards in 2013 with the previous winners
including ASOS and Zappos.com, Leadership ICT Company of the year 2013, Ecommerce website
of the year (Beacon of ICT Award), among other awards
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1.2 STATEMENT OF THE PROBLEM
Businesses in Uganda have come of age and as such, competition has alerted them to look for
innovations that will keep their customers and even win more. Because of the need for efficiency
and effectiveness in the business sector, the web is introduced and used mostly for commercial
purposes through internet trading and information technology. Despite the adoption of information
technology in Uganda’s business sectors today with its numerous objectives, observation has
however shown that, not all the objectives have been realized and felt by users.US Commercial
Service-USA Department of Commerce (2016), E-commerce is relatively new and undeveloped
in Uganda, due to the lack of widespread internet access.
This not being the case, online business management needs to keep up with the continuous
technological changes taking place around the world as this has the potentiality of affecting their
performance in terms of security, clearance and service delivery. Irrespective of the fact that online
businesses in Uganda are making more profits, they still suffer from inefficiencies and insecurity.
Critically evaluating the introduction of information technology owing to its objectives, it is not
concern with how much technology is provided but how well it serves potential users. This study
therefore, sought to examine the impacts of information technology on the performance of online
businesses in Uganda to realize its significant impact on their operations in order to guarantee their
profitability and growth.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to find out the negative and the positive impacts of information
technology on the performance of online businesses in Uganda.
1.4 OBJECTIVES OF THE STUDY
1.4.1 GENERAL OBJECTIVES OF THE STUDY
The major objective of the study is to find out the impact of information technology on the
performance of online businesses in Uganda.
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1.4.2 SPECIFIC OBJECTIVES

To establish the performance of online businesses in Uganda.

To identify the challenges online companies in Uganda face.

To determine the perceived benefits of online trading.
1.5 RESEARCH QUESTIONS
In order to achieve its objectives, the researcher used the following research questions in line with
the research objectives. These include the following;
i.
What are the impacts of information technology on advertising?
ii.
What are the challenges faced by online businesses in Uganda?
iii.
What are the perceived benefits of online businesses in Uganda?
1.6 HYPOTHESIS
The following hypotheses are formulated in line with the objectives and research questions of the
study:
Has IT been of positive impact on the performance of online businesses?
Has IT been of negative impact on the performance of online businesses?
1.7 SCOPE OF THE STUDY
This include the time, sample and geographical scope
1.7.1 TIME SCOPE
The is estimated to take a period of 3 months for the researcher to prepare the proposal, collect
data and present the findings.
1.7.2 SAMPLE SCOPE
The research will target Jumia market Uganda for data collection
1.7.3 GEOGRAPHICAL SCOPE
The research will take place in Kampala at Jumia Online Market Uganda a franchise that is rapidly
growing and majorly dealing in online business like online shopping, online restaurants, Jumia
travel among others
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1.8 SIGNIFICANCY OF THE STUDY
Research is a required tool in education that qualifies someone to attain a certain level of education.
This is purposely for an academic award
Once this study is done, it will provide information to other researchers who will need similar
information that is it will provide information about the impact of information technology on the
performance of online businesses in Uganda.
The study will also provide solutions to the negative impacts of information technology on the
performance of online businesses in Uganda
1.9 LIMITATIONS OF THE STUDY
During the research, the researcher expects to the following limitations.
i.
Financial constraint; financial support is required for all the study yet the researcher is
still a student.
ii.
Time constraint; to achieve desired results from any study one needs enough time to
critically analyze the situation.
iii.
Some respondents may have suspicion about the good intentions being the study as
such may not be willing to provide the needed knowledge on the research topic.
iv.
The researcher is also expected to be both physically and mentally challenging e.g. data
collection, organization, interpretation and analysis.
1.10 Definition of terms
a) Business is an entity that works towards gaining profits.
b) Budgeting; may be seen as calculating the gross incomes, expenditures, revenues and
funds.
c) Inventory management; is the act of ensuring proper stock control.
d) Government A government is the system by which a state or community is controlled. In
the case of this broad associative definition, government normally consists of legislators,
administrators, and arbitrators.
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
In this chapter, the empirical literature is reviewed on the dynamics of e-commerce or online
businesses and its performance evaluation. This progresses from an overview of how the internet
revolutionized the business world, through its central role in acceleration of e-commerce. This is
followed by a discussion on the impacts of Internet on the performance of online businesses,
literature that uncovers the foundations of performance evaluation in e-commerce and the
pinpoints to the research gap.
2.1. Impact of information technology on the performance of online businesses in Uganda.
Information Technology (ICT) play a very important role in helping businesses to have hedge over
competitors in terms of accessibility to global markets. Duan et al (2002), ascertains that the use
of Information Technology in many organizations has assisted in reducing transactional costs,
overcome the constraints of distance and have cut across geographic boundaries thereby assisting
to improve coordination of activities within organizational boundaries. In fact, Information
Technology has the potential to improve the core of every business process.
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Through the use of information technology, Small Micro Enterprises can gain from developing
capabilities for managing information, intensive resources, enjoy reduced transaction costs,
development capacity for information gathering and dissemination of international scale and gain
access to rapid flow of information (Minton, 2003).
In a study carried out by Lymer in 1997 it was observed that that ICT implementation in the
organizations has the potential to reduce costs and increase productivity level resulting into cost
effectiveness and thus a motivating factor for SMEs to use Internet commerce for improving
communication with trading partners and consumers. ICTs are being used for strategic
management, communication and collaboration, customers’ access, managerial decision making,
data management and knowledge management since it helps to provide an effective means of
organizational productivity and service delivery (Sajuyigbe and Alabi, 2012); they have positive
effect on firm performance in terms of productivity, profitability, market value and market share
(Ashrafi and Murtaza, 2008). Buyers and sellers are able to share information and transfer goods
across national borders with the use of ICT, which helps to increase access to global supply chains
(Minton.S, 2003).
Information Technology enhances the production process in organizations as monitoring
technologies could be used to reduce the number of supervisors required in the process (Chau,
1995). In the same view Brynjolfsson and Hitt, 2003 confirm that there is a substantial long-term
productivity gain with the use of Information Technology in organizations. The application of IT
in businesses cause’s fundamental changes that can provide powerful strategic and tactical tools
for organizations if properly applied and used (Buhalis, 2003). This could have great impact in
promoting and strengthening e-commerce competitiveness. The extensive use of ICT can allow
micro-enterprises with ideas and technologies to remain small and profitable or generate
substantial global sales by exploiting their intellectual property over the Internet (Sakai, 2002).
Therefore, the use of ICT can help to lower coordination cost and increase outsourcing in
organizations.
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OECD 2004 discovers that IT is able to improve information and knowledge management inside
the firm and increase the speed and reliability of transactions for both business-to-business (B2B)
and business-to-consumer (B2C) transactions. Lauder and Westall,
1997, have given their experts opinion that IT impacts include cheaper and faster communications,
better customer and supplier relations, more effective and efficient marketing, product and service
development and better access to information and training.
This is the new era of the Internet and globalization, indee9d there is little doubt that the Internet
has made it possible to start a global online business than it ever was to start a business before
(Fox, 2000). Entrepreneurs are coming up with new ideas and infusing technological advances to
gain leverage in the business world, redefining business models in ways many never thought
possible (Fruhling & Digman, 2002; Jebur, Gheysari, & Roghanian, 2012). Away from the plush
offices in Silicon Valley in the United States, in India it has been reported that smallscale soybean
farmers use a village internet Kiosk to check spot prices for their products on the Chicago Board
of Trade’s website, and getting better prices by cutting out local brokers (United Nations
Development Programme [UNDP], 2004).
Information technology particularly through its ability to enable electronic commerce (ecommerce) has redefined the rules of entire industries. Those firms that have embraced ecommerce have stumbled on new opportunities and those that lag behind are quickly becoming
irrelevant (Fruhling & Digman, 2002). E-commerce is revolutionizing the way businesses
compete, creating fundamental operational changes in business and business-level strategy. A
reorientation in strategic thinking by businesses is therefore necessary in order to view ecommerce
as an engine of growth and profit rather than cost (Fruhling & Digman, 2002; Andam, 2003).
IT has a critical role in collecting, processing, and storing data that is summarized and reported in
financial statements (Cannon and Crowe, 2004). Advances in ICT continuously render control
procedures obsolete; and the "value" of traditional internal audit becomes seriously questioned
(Tongren, 1997). As ICT changes occur more quickly, auditors must keep pace with emerging
technological changes and their impacts on their client’s data processing system, as well as their
own audit procedures (Rezaee and Reinstein, 1998). Internal audit functions are looking at
technology as a way of improving the organization’s productivity and risk management process.
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Technology has helped internal audit departments to automate and adopt best practices in audit
and assurance processes. Continuous auditing and monitoring are good examples and this has
resulted in freeing of internal audit professionals to lend their expertise in other high impact areas.
Traditionally, internal audit’s testing of controls has been performed on a retrospective and cyclical
basis, often months, if not longer, after business activities have occurred. The testing procedures
were often based on a sampling approach and included activities such as reviews of policies,
procedures, approvals, and reconciliations. Unfortunately, this approach only affords internal
auditors a narrow scope of evaluation that is often too late to be of real value to business
performance or regulatory compliance. In some organizations; however, technology has been
employed to perform continuous auditing, a process that automatically performs control and risk
assessments on a more frequent basis (Institute of Internal Auditors, 2009). Continuous auditing
changes the audit paradigm from periodic reviews of a sample of transactions to ongoing audit
procedures that test 100 percent of transactions. The power of continuous auditing lies in the
intelligent, uninterrupted testing of controls and risks that results in timely notification, follow-up
and remediation of gaps and weaknesses.
By changing the overall approach in this way, auditors will develop a better understanding of their
business environment and the potential risks to their company to support compliance and drive
online business performance (Institute of Internal Auditors, 2009). The enhanced ability to collect,
organize and analyze information helps institutions to better understand their customers, their
costs, and their options online.
They use this information to:

make better decisions about strategy, objectives and priorities;

monitor and test performance;

learn from the methodologies and techniques being applied by the institution; and

Make timely adjustments. (Joseph Kizito Bada)
Despite the fact that information technology plays a very big roles on the performance of online
businesses, information technology has also played a negative role otherwise. It is noted that In
the 2010/11 Census of Business Establishments, information was collected on the status of
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ownership and internet use by businesses in Uganda. Unfortunately, some of the businesses did
not respond. From the information obtained it is noted that, 95% of the businesses did not own
computers compared to only 5% that owned computers, Appendix 1e. Out of those businesses
without computers, the businesses in the Trade sector dominated (with 53%) while the majority
(26%) of those businesses that owned computers were in the Real Estate and Business Services
sector. Further analysis on internet usage also showed that only 3% of the businesses used internet
for business operations. 95% of businesses did not own computers. (Uganda National Bureau of
Statistics, 2010). This is also based on the fact that there is high charges on the data rates that is
used in Uganda charged by the Internet Service Providers in Uganda. This has led to a general
poor performance of online businesses in Uganda
2.2. Benefits of E-Commerce or online business
Many innovations in human history have transformed the way of life, it can be said that few
encompass as many benefits to organizations, individuals, and society as does e-commerce (Jebur
et al., 2012). The great facilities availed by the internet have greatly propelled the growth of ecommerce therefore increasing the magnitude of benefits. These include: access to global markets
at low costs, operational efficiency, cost reduction, mass customization, inventories reduction,
business efficiency, 24 hours accessibility, lower communication costs, increases sales and
profitability (to organizations).
Consumers on the other hand can benefit from; more choices, 24 hours access, new markets and
price comparisons, better prices due to competitive environments, convenience, time saving,
access to extensive information. To the society the benefits are; improved living standards since
some merchandise can be sold at lower prices, flexible working conditions, enhanced social
connections and facilities delivery of public services which reduces cost and increases quality of
the offered services (Wen et al., 2001; Kuzic et al., 2002; Marshall & Mckay, 2001; Jebur et al.,
2012; Souter & Kerretts-Makau, 2012).
By breaking down the barrier of time and space the internet increases competitiveness in the
business environment and levels the playground which allows small businesses can compete with
big businesses (Kinuthia & Akinnusi, 2014). According to the European Union Survey (2012), the
top reasons why consumers shop online for frequent online shoppers include; better prices,
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perceived savings in time, easier price comparisons, flexibility due to 24 hours access and a wider
selection. The report estimated that consumer welfare gains from e-commerce in goods alone in
terms of lower online prices wider choice are estimated to be around €11.7 billion, an amount
equivalent to 0.12% of EU, gross domestic product.
The product categories where savings of at least 5% can be found online are women's fragrances,
in-car navigation, LCD TVs, and mobile phones. The report however cautions that these benefits
will not be realized if businesses and consumers refrain from shopping online. Adam (2003)
postulates that in developing countries e-commerce poses the advantages of reduced information
search costs and transactions costs. Businesses seek this information to guide their business
strategies, in addition they can also automatically package and distribute information to specific
target groups. Marshall, and Mckay (2001) found out that there seemed a disconcerting lack of
planning, evaluation and proactive management of benefits with respect by most SME
organizations in regards to their e-commerce initiatives.
2.3. Challenges faced by online companies in Uganda
There has been consistent accelerated growth of e-commerce activities in Uganda as the number
of organizations and consumers seeking to tap the benefits of this trade continue to rise. However,
this has not been without a myriad of obstacles that still continue to impede the adoption of ecommerce and hamper potential benefits for organizations. Jebur, Gheysari and Roghanian (2012)
grouped the limitations of e-commerce into technical (Lack of universally accepted standards for
quality, security, and reliability, communication bandwidth, security, ecommerce software
incompatibility with operating system and other applications) and nontechnical (privacy, internet
access difficulty and expense, consumers will to touch the products, loss in the social interaction).
Pinsonneault and Kraemer, 1993 in their study have categorized internal and external barriers that
impede adoption of ICT by businesses in developing countries including Uganda.
Other clusters of inhibitors to e-commerce have been grouped as; technological (security, web site
issues, technology issues including costs, software, infrastructure), managerial (people and
organizational issues, management support) and business challenges (customers service, customer
old habits, legal issues), (Kuzic et al., 2002).
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The creation of a successful company is challenging at best and the unique characteristics of the
Internet make it particularly difficult (Schultz, 2009). Perhaps one of the most pertinent issue
remains to be trust which is a key unlocking the success of e-commerce. Consumers must have
confidence about the product information and reliability of the trading partner (Kenpankho,
Suwanjan, & Siripongdee, 2005; Hauswirth et al., 2001; Souter & Kerretts-Makau, 2012). Many
consumers across the world are reluctant to shop online because of risk both perceived and real
associated with such transactions.
These security risks are especially high due to the open nature of the internet coupled with
increasing technical knowledge of modern day sophisticated criminals (Jebur et al., 2012). Security
is key in achieving to ecommerce success, the parties involved need have a high degree of
assurance that their data is protected against accidental or intentional disclosure to unauthorized
persons, or unauthorized modifications or destruction (Hauswirth et al., 2001).An European
commission survey (2012) reported that whilst most consumers were potentially interested to shop
online they abstained not due to lack of skills or internet access; it was for reasons associated with
a general lack of trust in online businesses. This major inhibiting factors about shopping online are
concerns with: the security of payments, privacy, receiving or returning goods and getting redress,
access to payment card and delivery.
In developing economies potential businesses and consumers also have to confront additional
issues associated with poor and/or limited internet accessibility and high costs (Souter & KerrettsMakau, 2012). The growth of e-commerce is also posing challenges to governments especially tax
authorities as they begin to institute mechanisms to collect taxes on these transactions (Jebur et al.,
2012). Additionally, the complexity and lack of global harmonization of legal framework
governing cross-border e-commerce transactions is also a major hurdle that prevents some traders
and consumers from engaging in e-commerce (European Commission, 2012; Souter & KerrettsMakau, 2012).
2.4. Summary
Since that initial business transaction across the internet occurred in the USA, the world has
witnessed an unprecedented revolution in e-commerce. So much so, that e-commerce to most
people is almost synonymous with transacting business online. While e-commerce is haunted by
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a myriad of challenges, it poses massive benefits to organizations, customers and the society as a
whole. Perhaps of great interest is the fact that, e-commerce has made it possible for some
businesses to offer their products and services virtually with minimal need to physically interact
with customers. This breed of ‘pure-play’ e-commerce firms has been greatly successful in the
developed countries and companies such as Amazon, Groupon, and E-bay are widely known
across the world. In developing countries like Uganda, this type of e-commerce business model is
still in the formative stages. However, there is need to evaluate the performance of the relatively
few online companies that do exist, as research in this area seems to be lacking. The framework
for evaluating performance of e-commerce websites is a multi-dimensional construct that cannot
be based on financial measures alone. This study adopted a model based on three measures (usage,
financial benefits and owner’s satisfaction) to evaluate performance of online companies in
Uganda.
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter describes the research design and methods for this study. It specifically identifies the
processes of gathering, analyzing and interpretation of data that will be used in this study. This
chapter begins with the research design, which is a description of the research approach. It further
attempts to describe the population of this study. It also looks at the data collection tools that will
be used in the course of the research. It also presents the data collection instruments that will be
used in the process of data collection and methods that will be used to maintain the validity of the
research instruments.
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3.1. Research design
Katebire (2007) describes the concept research design to refer to a general strategy adopted for
answering the research questions. Bell (1997) observes that the research design outlines the basis
for making interpretation of data and establishes the format for detailed steps to follow when
conducting this study. Bell (1997) further contends that the ‘research universe’ is guided by two
major research design paradigms; that is quantitative research and qualitative research paradigms.
Each of these paradigms is further conducted using relevant data collection and analysis
approaches as the need may arise (Enon, 1998).
This study will be conducted using a qualitative research paradigm. Easterby-Smith et al., (1991)
notes that qualitative researchers use words and meanings from studies as opposed to the use of
number and quantifiable units to draw meanings which is the focus of quantitative research.
In adopting the qualitative research paradigm, two approaches of this study will be used; that is
literature survey and case study design.
3.2 Population
Epsteil (1997) defines a population as a complete set of elements (individuals and objects) with
some common observable characteristics on the basis of which they are included into a study. Enon
(1998) notes that it is critical to distinguish between the populations for which the results are
required. For the purpose of this study, the population included the systems administrator, the
director and the sales manager of the Jumia online market agency. These were selected because of
their roles in the establishment and management of Jumia online market agency. The research
population of this study will also include the IT systems adopted in the running of Jumia online
market agency.
The size of the population in this study is consistent with the application of qualitative research
design. Enon (1998) confirms that in the conduct of qualitative research, there is little influence of
the size of the population since this study seeks more to establish meanings than draw quantitative
conclusions.
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3.4 Sampling
Enon (1998) defines sampling as a deliberate process of selecting a part of population for study
with the intention of generalizing the findings to the whole population. As such a part of the
population (sample) is selected with the results generalized to the whole population. Sampling in
a research undertaking can be random, non-random, or a combination of both (Bell, 1997). The
researcher will use purposive sample method for managers, random for salesmen and IT officers
will snow ball for customers.
This study will involve a sample population of 44 respondents selected from customers, sales men,
Information experts and management of Jumia firm.
Table below shows the sample size
Category
population
Sample
Managers
08
04
Jumia I. T experts
20
05
Salesmen
20
10
Customers
200
25
TOTAL
248
44
3.5 Description of data collection methods
From 3.2 above it is stated that this study will consider the use of both secondary data and primary
data.
For purposes of this study, secondary data will be collected through the use of a literature survey.
Under this method both published and non-peer reviewed materials such as books, reports, journals
and internet resources will be used. The literature survey further provided a background to
developments in ICT, online businesses and how ICT impact the performance of the online
businesses.
Primary data will be collected using three methods; that is the interview method the observation
method and the Questionnaire. However, it should be noted that care and thought will be given in
the application of these methods since this study has taken a case study dimension.
16
3.6.1 Interview method
Bell (1997) describes an interview as a dialogue between the interviewer and respondent with the
purpose of eliciting certain information from the respondents. Interviews take different forms
ranging from face-to-face interviews to technology mediated interviews.
In this study face-to- face interviews were conducted to obtain primary data. This type of method
is credited for allowing the interviewer with room for probing and gathering more information
depending on the knowledge, ability and experience of the respondents (Epsteil, 1997).
In using this method, interviews will be conducted with the systems administrator to establish the
performance of the Jumia online market agency, the usability of the system across the services
range and challenges faced in the use of the system.
An interview will also be conducted with the Director of Jumia online market agency to establish
the history of the Jumia online market agency and its adoption of ICTs.
The third interview will be conducted with the manager of Jumia to establish the performance of
this online business in line with sales.
3.6.2 Observation
Observation can be defined as a purposeful examination of research phenomenon for purposes of
gathering data. It involves the use of sensory organs to make sense of this study phenomenon
(Katebire, 2007). This method was chosen because it provides the advantage of eliminating bias
that may not be presented by the respondents particularly through other methods such as
questionnaires and interviews (Katebire, 2007).
Observation is a good technique especially for activities that could not be measured; for example
the time the spent uploading goods on the computer, the number of users who can access the
platform at a time, the time the spent in searching for the goods, the instruction guidelines and
rules on use of the platform, for example how to search for goods, payment methods and delivery
methods.
3.6.3 Questionnaire
Questionnaires were designed (Appendices A and B) such that each question was related to a given
research question and the topic. Both closed and open ended questions were used. Open ended
questions were to help supplement the information given in the closed ended questions and helped
17
in obtaining more complete data. The questionnaires are preferred because it gives clear and
specific responses and enable the respondent to express themselves freely especially lecturers who
may not have enough time to attend to personal interview.
3.10 ETHICAL CONSIDERATIONS
In order to abide by the general best practices that guide empirical studies at the YMCA
comprehensive Institute, the following process will be adhered to ensure that this study is ethically
done.

Ethical clearance for this study will be obtained from the Head of computer science
department.

The participants that will be interviewed will be asked to assign a sign-off sheet to prove
that they have accepted to take part in this study with their consent. In the sign-off sheet,
the researcher will provide contacts for participants to request for any further information
that they may need regarding this study.

The researcher will assure the participants about confidentiality and that the information
given to the researcher will be used for purposes of this study only.

The researcher will ensure that the research process is devoid of any tireless psychological
or physical risks.
REFERENCES
1. Bell, K. 1997. How to complete your research successfully: A guide for first time
researchers; New Delhi: UBS Publishers
2. ChooWouOnn, Shahryar Sorooshian2013
3. Commercial Service-USA Department of Commerce (2016)
4. Communications Technology-Uganda.
5. Easterby-Smith, M… et al. 1991. Management Research: An Introduction. London, Sage
Publishers
6. Enon, J. C. 1998. Education Research: Statistics and measurement. Kampala, Makerere
University
18
7. Epsteil, I. (1997), Research techniques for program planning, monitoring and evaluation.
New York, Columbia University `
8. Katebire, D. A. 2007. Social Research Methodology: An introduction. Kampala, Makerere
University Printery
9. Olivier, M.S. 2004. Information Technology research: A practical guide for Computer
Science and Informatics. 2nd Ed. Pretoria, Van Schaik Publishers
10. Paper for the National Development Plan. Kampala: Ministry of Information and
11. Ritchie, J. & Lewis J. 2004. Qualitative Research practice. London, Sage Publications.
12. St.Amour, 2012, ICT Sector Thematic
13. Yin, R. K. 2003. Case study research: Design and methods. 3rd Ed. California, Sage
Publications
14. Yin, R. K. 2009. Case study research: Design and methods. 4th Ed. California, Sage
Publications
Appendix 1
TIME SCHEDULE
Activity
Months
Topics
MAY 2022
JUNE 2022
Chapter one
Chapter two
Chapter three
Typing the proposal
19
JULY 2022
Final approval of
proposal
Submission of
proposal
APPENDIX II:
BUDGET
Item
Quantity
Unit cost
Total Amount
Stationery
1 ream and Pens 15000
15000/=
Transport
20 days
1500
30000/=
Meals and Refreshments
20 days
1500
30000/=
Typing and editing
29
600
17400/=
Printing
58
200
11600/=
20
Binding
2
1500
3000/=
Research fee
30000/=
Airtime
7000/=
Total
144000/=
INTERVIEW GUIDE
QUESTIONS
1) What is your name?
2) Do you work?
3) What is your area of specialty in Jumia?
4) Is your business linked on any social media platform, if yes tell those platforms?
5) When did you link your business to social media platforms you named above?
6) Tell me about the difference between the performance of your business before and after
connecting it to social media platforms you named in question four.
21
7) What are your customers’ reactions about your business
8) Which means of delivery services do you use?
9) How do you deal with customers’ orders online and offline
10) How has internet helped you to advertise your goods online
Appendix III:
QUESTIONNAIRE
Dear Respondent,
I AM AINEMBABAZI PRIMAH a student of YMCA Comprehensive Institute, Kampala am
conducting a research study on the topic impact information technology on performance of online
businesses in Uganda..I kindly request you to spare time to answer this questionnaire. The
information given will be treated as confidential and the results of the study will be used for
academic research purposes only.
Part A: Bio Data
Please tick where appropriate
1) Name of company _______________________________
2) Title of respondent _______________________________
3) Division/Department ______________________________
22
4) What is your age bracket?
18-26 [ ] 27-35 [ ] 36 -45 [ ] 46-55 [ ] 56 and above [ ]
5) Indicate ownership of your company
a) Local [ ] b) Foreign [ ] c) Government [ ] d) Others (Specify) …
6) How many years have you worked in your organization?
a) Less than 3 years [ ] b) 3 – 5 years [ ] c) 6 – 7 years [ ] d) Above 8years [ ]
SECTION I: EFFECTS OF INFORMATION TECHNOLOGY ON PERFORMANCE OF
ONLINE BUSINESSES IN UGANDA
SECTION A: Level of ICT usage.
a) How many departments are using ICT in your company?
None
1-2
3-5 all department
b) How many hours to you spend using IT in performing your duty in the company?
0-5 hrs
6-10hrs
10hrs and above.
c) Using a scale of 1 to 5 Tick as an appropriate using the key ;where 1-strongly agree, 2agree, 3- Not sure, 4- disagree, 5- strongly disagree. To what extent do you agree with the
following statements IT usage in your company?
1
Statement
The management encourages the use of IT within the company
The level of IT usage is very low within the company
Employees resist the usage of IT within the company
The IT equipment’s within the companies are not effective
All activities within the company are computerized
23
2 3
4
5
The customers service delivery has improved since the incorporation of IT
within the firm
SECTION B: Security & Tracking
a) Do you offer cargo tracking services?
Yes
No
b) What are the tracking systems and services do your company offer on service delivery?
(a) Car tracking (b) Fuel management (c) Driver management (d) Routing, mapping and
scheduling
c) Using a scale of 1 to 5 Tick as an appropriate using the key; where 1-strongly agree, 2agree, 3- Not sure, 4- disagree, 5- strongly disagree. To what extent do you agree with the
following statements IT usage in your company?
1
STATEMENT
2
3 4 5
The cost of tracking cargo is more expensive hence lowers the profit
The tracking system increases customers confidence resulting into sales
increase
Online tracking and management of cargo is more secure than the manual
1 2 3 4 5
MANAGEMENT SYSTEMS
The online tracking system can be easily be tampered with compared to
manual system
24
Computerized clearing and forward is quicker and faster compared to the
manual system
All supply chain employees are trained on supply chain risk management
The organization has defined and documented its Occupational Health and
Safety (OHS) policy
SECTION C: Customer service delivery
a) Using a scale of 1 to 5 Tick as an appropriate using the key; where 1-strongly agree, 2agree, 3- Not sure, 4- disagree, 5- strongly disagree. To what extent do you agree with the
following statements IT usage in your ccomplany?
Customers can launched complains and get services online with incorporation 1 2 3 4 5
of IT system
Customers preferred being served manually compared to online services
The time to serve one customer has reduced significantly with incorporation
of IT on customer service delivery
The cost of employing customer service attendance has reduced while serving
them online
Manual customer attendance is more fulfilling than online attendance
Part D: Integration of IT services
25
1. Has the company integrated the customer and major supply in their system?
Yes [ ] No [ ]
2. If yes what are the major activities that has been integrated?
3. Using a scale of 1 to 5 Tick as an appropriate using the key; where 1-strongly agree, 2agree, 3- Not sure, 4- disagree, 5- strongly disagree. To what extent do you agree with the
following statements IT integration in your company?
Integration helps in easy evaluation of major suppliers
1
2 3 4 5
Integration helps easy payment and attendance of major customers
It is easy and simple to handle integrated clients within the system
It is easier an more simple to serve integrate suppliers
Integration increases customer service delivery efficiency
Integration improves control system of an organization
Part E: Performance
Indicate the average sales increase in your company over the following years
Average sales per year (Ushs)
After ICT Adoption 2013 [ ]
2012 [
]
2011 [
]
Before ICT adoption 2010 [ ]
2009 [
]
2008 [
]
The following areas compare your firm performance with other firm in the industry. Tick
as appropriate which you feel best estimates how your firm currently compares to other
firms in the industry on each item.
Lowest
Lower
Mid
(20%-40%)
(40%-60%)
26
Next
Top
(80%-100%)
(0%-
(60%-
20%)
80%)
After tax return
on total assets
After tax return
on total sales
Firms total sales
growth
FIRM’S TOTAL
SALES
GROWTH
Over past 5
years
Overall firm
performance
and success
Our
competitive
position
Net profit
Gross profit
27
Return
on
Investment
Summary
Objectives
Levels
usage
of
High
Middle
Low
IT
Security tracking
system
Customer service
delivery
Information
integration
system
28
Percentage
1