Effect of Technological Collaboration on the Growth of Selected Retail Chains in Kenya

Abstract

Technological collaboration is increasingly central to inter-organizational coordination and sustained growth within contemporary retailing. However, empirical evidence remains limited on how collaborative deployment of digital systems and technology-enabled capabilities influences the growth of retail chains in Kenya. The study examined the effect of technological collaboration on the growth of selected retail chains in Kenya. Specifically, it investigated whether shared information and communication technology (ICT) systems, collaborative e-commerce development and supply-chain technology integration contributed to retail-chain growth. The study adopted a positivist philosophy and an explanatory-correlational cross-sectional research design. The study focused on Naivas Limited, Quickmart Limited and Carrefour Kenya and included external suppliers involved in strategic and operational relationships with the selected retail chains. Primary data were collected using structured questionnaires administered through physical and electronic modes. Of the 263 questionnaires targeted, 215 usable responses were obtained, representing an 81.7% response rate. Data was analyzed using descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM), with bootstrapping employed to test the significance of the hypothesized relationship. The findings established a positive and statistically significant relationship between technological collaboration and the growth of selected retail chains in Kenya (β = .166, t = 2.283, p = .022). The result indicates that stronger technological collaboration is associated with higher retail growth, although the magnitude of the relationship is relatively modest. The findings suggest that shared ICT systems, collaborative e-commerce development and supply-chain technology integration can strengthen information visibility, operational coordination, responsiveness and organizational scalability. The study concluded that technological collaboration constitutes a strategically relevant capability for retail-chain growth. Its value, however, does not arise from the adoption of technology in isolation but from the ability of retailers and strategic partners to integrate technological resources and coordinate interdependent activities across organizational boundaries. The study recommends that retail-chain managers should shift from fragmented, firm-centered technology adoption towards strategically governed technological collaboration with suppliers and other ecosystem partners. Priority should be given to interoperable ICT systems, collaborative forecasting, real-time inventory visibility, electronic ordering, integrated e-commerce platforms and technology-enabled supply-chain coordination.

Keywords: Technological collaboration; strategic alliance; strategic partnership capabilities; retail growth; ICT integration; e-commerce; supply-chain integration.