FACTORS AFFECTING THE ADOPTION OF INFORMATION AND COMPUTER TECHNOLOGY IN SMALL AND MEDIUM ENTERPRISES IN KENYA: A CASE OF MATATU SACCOS IN THIKA TOWN
The study aimed at investigating the factors that affect the adoption of Information Communication Technologies (ICTs) by Small-and-Medium-sized Enterprises (SMEs) in the Matatu SACCOs in Thika town. The study was based on the following general objectives: the influence of innovative top management and organizational innovation on the adoption of ICT adoption among Matatu SACCOs. The study was significant since the findings of this study are expected to benefit government policy makers, ICT specialists, business experts and SMEs in transport sector. The study was carried out in Thika Town in Kenya. The study focused on the Matatu SACCOs who had adopted ICT adoption in their transactions. The study used survey study method to collect both qualitative and quantitative data. Self-administered questionnaires were used in collecting data. Cronbach’s alpha was used to test the reliability of the measures of the questionnaire. Quantitative data was edited to eliminate inconsistencies, summarized and coded for easy classification. Descriptive statistics were used in describing the sample data with an aid of Statistical Package for Social Sciences (SPSS). A response rate of 78% was obtained from the study participants with 27 % of the respondents being managers, 46 % drivers and 51% were conductors. The study findings revealed that 77 % of the respondents had secondary school certificate. At the same time, 47 % of the Saccos had an average of 11-49 workers with most of the Saccos (53 %) having above 50 workers. The study findings revealed that 2NK, Chania, and Manchester saccos were evenly distributed with a population of between 21-22% of the Matatus in Thika. 4NTE and Thika road sacco had a population of between 17 and 19% of the population. Majority of the respondents agreed with the assertion that knowledge level affects ICT adoption. Reliability test was conducted and all factors had cronbach alphas of 0.7 and therefore measures were internally consistent. The questionnaire was validated using discriminant validity tests. The measures of convergent validity met threshold of more than 0.5 AVE. The first objective of this study was to establish the effect of innovative top management support on the adoption of ICT adoption among the Matatu SACCOs in Thika town. Innovative top management had the leading correlation of 0.876 which is a strong positive correlation. This implied that the Sacco growth solely depends on the management skills and innovation of its top managers. The second objective of this study was to determine the effect of organizational innovation on the adoption of ICT among the Matatu SACCOs. Organization innovation had the second best correlation, a moderate positive correlation of r=0.549. This implied that the Sacco’s ability to integrate ICT in its operations is important in the overall success, survival and growth. The third objective sought to establish the effect of innovative IT expertise in the adoption of ICT adoption among Matatu SACCOs. This implied that integration of ICT in the Sacco operations will still give it an edge over its competitors. The study concluded that, innovative top management had the leading correlation which was a strong positive correlation. The strong relationship indicated the important role the management of the Matatu Saccos plays in decision making in terms of whether the organization is to adopt ICT and grow and prosper or the status quo will remain. Organization innovation had the second best correlation which was a moderate positive correlation to adoption of ICT. It was concluded that the ability or inability of an organization to adopt ICT is an indicator of prosperity or growth problems. The overall success the adoption of ICT by Matatu Saccos will solely depend on the ability of top management to embrace innovation, the organization to be holistic to technology, the ability to positively compete and the effective utilization of innovation and technology expertise to drive the organization to growth. The study recommended that the Government should make ICT more affordable to small enterprises by lowering the tax and regulating their prices so as to curtail dealers inflating prices. The Government through the relevant bodies should initiate and support training programmes to develop the capacity of small and medium entrepreneurs in Matatu Saccos on ICT tools.
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