DIGITAL TRANSFORMATION STRATEGIES ON THE PERFORMANCE OF SOLAR POWER ENTERPRISES IN NAIROBI, KENYA

Abstract

The solar power industry in Nairobi, Kenya, has grown significantly in recent years but faces challenges such as high operational costs, inefficient supply chain management, and limited financing access. This study aimed to establish the effects of strategic responses, specifically digital transformation strategies, on the performance of solar power enterprises in Nairobi County. The research was anchored on the Technology Acceptance Model (TAM) and employed a descriptive survey design, targeting managerial personnel in firms licensed by the Ministry of Energy. Given the relatively small population size, a census approach was used, covering all 187 operational solar energy firms in Nairobi County. Data collection was conducted using self administered questionnaires, and analysis was performed using qualitative content analysis and statistical methods via SPSS version 25. Descriptive statistics, including frequencies, percentages, means, and standard deviations, were utilized, while inferential methods such as Chi-Square, Contingency Coefficient Measure of Association, ANOVA, and Multiple Linear Regression tested variable relationships. The findings revealed that digital transformation strategies significantly impacted the performance of solar power enterprises, with a regression coefficient of β=0.196 and a p-value of 0.041. These strategies improved operational efficiency, reduced costs, and enhanced customer engagement. The study highlighted the critical role of strategic management practices in ensuring the success and sustainability of solar power enterprises in Nairobi.