Internationalizing E-commerce: Challenges and Opportunities for SMEs in Kenya as a Developing Country

Abstract

This study explores the multidimensional impact of digital marketing and ecommerce on the internationalization of Small and Medium-sized Enterprises (SMEs) in Kenya's e- commerce sector. The research is done using a mixed-methods approach with both quantitative and qualitative data collected from 50 SME owners across all 47 counties in Kenya. The study aims to enhance understanding of how digital marketing can overcome challenges and capitalize on opportunities in the global market. Quantitative data (gathered through structured survey questionnaire) highlight the prevalence of digital marketing tools such as social media, SEO, email marketing, and content marketing among SMEs. The findings reveal that while 90% of SMEs leverage social media to extend their reach, 70% use SEO to enhance visibility, and 60% employ email marketing to maintain customer engagement. Qualitative insights (obtained through interviews) show the critical challenges SMEs face, including cybersecurity threats, limited digital infrastructure, and regulatory compliance. These challenges are mitigated through strategic digital marketing practices, such as investing in cybersecurity measures and leveraging local influencers. The study's findings show the significant impact of digital marketing on SME performance, with 80% of respondents reporting increased sales and enhanced brand visibility. The use of data analytics and adaptive SEO strategies further supports SMEs in navigating the dynamic digital marketing environment. Recommendations for SMEs include prioritizing cybersecurity, enhancing digital infrastructure, and leveraging data analytics to optimize marketing strategies. This comprehensive analysis provides valuable insights and practical recommendations, demonstrating how digital marketing can effectively support the internationalization of Kenyan SMEs, thereby contributing to their resilience and growth in the global digital marketplace.