Entrepreneurial Competencies and Performance of Online Retail Enterprises in Kenya: Moderating role of Legal framework

Abstract: Despite the transformative potential of online trading, retail enterprises in Kenya continue to experience uneven performance. These constraints undermine the sector’s full potential and pose a significant barrier to broader national economic development. This study assessed the impact of entrepreneurial competencies on the performance of online retail enterprises in Kenya as well as the moderating role of the legal framework. Using a descriptive design, it targeted 495 employees from 165 registered online retail enterprises, with a sample size of 351 determined by Yamane’s formula. Data was analysed using a triangulation approach. Regression analysis revealed that entrepreneurial competencies significantly and positively influence enterprise performance. From the findings, entrepreneurial competencies were found to have a significant positive influence on performance online retail enterprises in Kenya (p < 0.001). The results show that the legal framework significantly influence performance on its own, its interaction with entrepreneurial competencies has a notable impact, with the interaction term showing a significant moderating role (p<0.01). To improve the performance of online retail enterprises, managers should focus on developing entrepreneurial competencies while advocating for supportive legal frameworks. Policymakers should update laws to support the digital economy, provide financial incentives, and enhance access to resources for small businesses. The study contributes to entrepreneurship theory by emphasizing the importance of human capital and government policies. Keywords: Entrepreneurial Competencies, Enterprise Performance, Legal Framework, Online Retail Enterprises. Title: Entrepreneurial Competencies and Performance of Online Retail Enterprises in Kenya: Moderating role of Legal framework Author: Leonard Matolo Ngungi, Dr. Jane Omwenga, Dr. Joseph Ndururi International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 14, Issue 1, January 2026 - March 2026 Page No: 205-217 Research Publish Journals Website: www.researchpublish.com Published Date: 26-February-2026 DOI: https://doi.org/10.5281/zenodo.18787384 Paper Download link (Source) https://www.researchpublish.com/papers/entrepreneurial-competencies-and-performance-of-online-retail-enterprises-in-kenya-moderating-role-of-legal-framework