Abstract:
Small businesses appear to be slow in adopting e-marketing. This study sought to investigate the challenges
faced by small businesses in adoption of E-marketing. Specifically, this study sought to determine the relationship between
security concerns and adoption of E-marketing and to determine the relationship between perceived cost of e-marketing
technology and adoption of E-marketing among small businesses in the hospitality industry in Kenya. A cross sectional
survey design was employed. Stratified random sampling method was used to generate the study sample of 115 small
businesses, out of which respective owner-managers responded. The study used structured self administered questionnaire
to collect primary data while secondary data were collected via relevant publications. Instrument reliability assessment was
confirmed using cronchbas alpha while validity was confirmed using content and construct validity testing. The data was
analyzed using descriptive and inferential statistics using Partial Least Squares-Structural Equations Modeling implemented
in WarpPLS v.5 software. The results show that a negative relationship exists between Security concerns and e-marketing
adoption (β= -0.158, p= 0.047). The results also show a negative relationship between perceived costs and e-marketing
adoption (β= -0.260, p= 0.002).This study recommends the provision Information Technology security systems to prevent
spy ware, viruses and hackers and hence improve security of the Internet and provide relatively affordable hosting services
for small businesses. The policy makers should also play an active role to ensure that the cyber laws effectively regulate
online transactions and protect against virtual theft and hacking. The Vendors of E-marketing applications should also
create awareness among small businesses on the advantages of e-marketing and especially on newer technologies like the
provision of Software As A Service (SAAS) using cloud technologies. This may reduce the cost of adoption of e-marketing
among small businesses that are resource constrained. The Government should also invest in the necessary I.T.
infrastructure to allow E- marketing and payment services to be conducted
