Business Development Strategies and Organizational Performance of Selected Online Retailers in Nairobi City County, Kenya

The study examined the relationship between development strategies and organizational performance among selected online retailers in Nairobi City County. The specific objectives of the study were to examine the influence of value creation, value delivery and value networking on organizational performance of selected online retailers in Nairobi City County, Kenya. The study, grounded in stakeholder theory, competitive advantage theory, dynamic capabilities theory, and the balanced scorecard model, employed a cross-sectional descriptive survey targeting 100 middle and top management staff from 10 online retailers in Nairobi City County. Using a sample size of 80 determined by the Krejcie and Morgan table, data was collected through questionnaires and a secondary data template, with qualitative data analyzed using content analysis and quantitative data examined through descriptive and inferential statistics. The study found value creation is positively and insignificantly related to organizational performance (β = 0.054, p > .05). The value delivery was positively and significantly related to organizational performance (β = 0.155, p < .05). The value networking was positively and significantly related to organizational performance (β = 0.431, p < .05). In conclusion, value networking has the highest contribution to organizational performance among the specific variables. This means that online retailers that focus on building relationships with other businesses and organizations are more likely to have better organizational performance. It is important to note that the t-statistic is a measure of the statistical significance of the coefficient. A higher t-statistic means that the coefficient is more likely to be statistically significant. In this case, value networking has the highest t-statistic, which means that it is the strongest predictor of organizational performance. The study recommends that online retailers in Kenya should focus on understanding what customers value most, such as fast shipping, product variety, or competitive prices, and ensuring consistent value delivery across all platforms, whether online or in-store. The use of technology, such as data analytics and automation, is emphasized to enhance value delivery and streamline processes. The study also recommends building relationships with key businesses and organizations that can aid in improving organizational performance, emphasizing networking and maintaining a strong online presence. Keywords: Value creation, value delivery, value networking, organizational performance, online retailers, Nairobi City County