FACTORS AFFECTING THE ADOPTION OF INFORMATION AND COMPUTER TECHNOLOGY IN SMALL AND MEDIUM ENTERPRISES IN KENYA: A CASE OF MATATU SACCOS IN THIKA TOWN

JOYCE NJERI NJAU

Abstract


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.

Key Words: Information, Computer Technology, Small and Medium Enterprises

Full Text:

PDF

References


Acheampong R. O., and Gyawu P., (2011). E-commerce and Internet Adoption among SMEs Non-Traditional Exporters. A Case Study of Ghanaian Fruit Exporters. Thesis. Lulea University of Technology, Sweden.

Amit R. and Zott C. (2001). Value Creation in E-Business. Strategic Management Journal 22: 493-520

Auger, P., BarNir, A., & Gallaugher, J. M. (2003). Strategic orientation, competition, and Internet–based electronic commerce: Information Technology and Management, April.-July, 4, (2), 139-146.

Bless, C., Higson-Smith, C., & Kagee, A. (2007). Fundamentals of social research methods – An African perspective (Fourth Edi.). Cape Town, South Africa: Juta.

Botelho A. J., and Alves A. S. (2007). Mobile Use/ Adoption by Small and Medium Enterprises in Latin America and the Caribbean. Creative Commons Attribution.

Bresnahan, T., Brynjolfsson, E. and Hitt, L. (2002). Information technology, workplace organization, and the demand for skilled labor: firm-level evidence, The Quarterly Journal of Economics, Vol. 117 No. 1, pp. 339-76.

Bryman, A., & Bell, E. (2011). Business Research Methods, (3rd ed.) New York:Oxford,University press

Chen, L., Haney, S., Pandzik, A., Spigarelli, J. and Jesseman, C. (2003), Small business internet commerce: a case study. Information Resources Management Journal, Vol. 16 No. 3, pp. 17-41.

Cooper, D.R., & Schindler, P., S. (2008). Business Research Methods. London, Mcgraw Hill Higher Education.

Cragg, P.B. and Zinatelli, N. (1995). The evolution of information systems in small firms. Information and Management, Vol. 29 No. 1, pp. 1-8.

Dholakia R. R., and Kshetri N. (2004). Factors Impacting the Adoption of the Internet among SMEs. Small Business Economics. Kluwer Academic Publishers: 311-322.

Gay, L.R (1981). Educational research competencies for analysis and applications: Columbus Toronto, Charles Mairill Publishing.

Kariuki, A.G., (2012). ICT Attributes as Determinants of E-commerce Adoption by Formal Small Enterprises in Urban Kenya. International Journal of Business and Social Science, 3(23): 65-74.

Kinyanjui, M., N., & McCormick, D. (2002). E-commerce in the garment industry in Kenya: usage, obstacles and policies, Report for project: Ecommerce for Developing Countries: Building an Evidence Base for Impact Assessment:Sussex, Institute for Development Studies

Kothari, C. R. ( 2004). .Research Methodology, New Delhi:New Age International Publisher.

Kvale, S. (2008). Doing interviews.Thousand Oaks,CA:Sage.

Lertwongstaien, C. & Wongpinunwatana, N. (2003). ICT adoption adoption in Thailand: an empirical study of small and medium enterprises (SMES).Journal of Global Technology Management, 6(3), 67-68.

Lin, H.F. and Lee, G.G. (2005). Impact of organizational learning and knowledge management factors on ICT adoption adoption. Management Decision Journal, Vol. 43 No. 2, pp. 171-88.

Mehrtens, J., Cragg, P.B. and Mills, A.M. (2001). A model of internet adoption by SMEs. Journal of Information and Management, Vol. 39 No. 3, pp. 165-76.

Mokaya, D.M., E. and Njoroge, A.G., (2012). ICT Attributes as Determinants of E-commerce Adoption by Formal Small Enterprises in Urban Kenya. International Journal of Business and Social Science, 3(23): 65-74.

Mser Gicheru (PhD), HSC; Mr. Wanjohi Migwi & Mr. Kirianki M’Imanyara An Analysis of the Socio-Economic Impacts of the New Integrated National Transport Policy: The Case of 14-Seat Transport SACCOs in Kenya. A research paper first presented at the ICA Global Research Conference Held at Mikkeli in Finland, 24-28 August 2011.

Mugenda, A., G. (2008). Social Science Research, Theory and Principles. Nairobi. Applied Research and Training Services Press.

Munro, B. (2005). Statistical Methods for health care research (5th Ed.). Philadelphia. Newark publishing

Nachmias, D., & Nachmias, C. (2004). Research Method in the social sciences: Boston, St.Martins Press

Passerini, K., Tarabishy A. E., and Patten K. (2012). Information Technology for Small Business: 19-35

Kimani, Ndugu P., Kibua, Thomas, and Masinde, Muyundo. (2010). The Role of the Matatu industry in Kenya: Economic Costs, Benefits and Policy Concerns. IPAR Discussion Paper Series, Discussion Paper No. 053/2004. Kenya Institute of Policy Analysis and Research. Kenya: Regal Press.

Lee-Smith, Diana, T. (2003). Urban Management in Nairobi: A Case Study if the Matatu Mode of Public Transit, in African Cities in Crisis: Managing Rapid Growth, Richard E. Stern and Rodney R. White (eds.), Boulder: Westview Press.

Mutongi, K. (2009). Thugs or Entrepreneurs? Perceptions of Matatu Operations in Nairobi, 2000 to the Present, Africa 76 (4) pg 549 -568.

Sekaran, U., & Bougie, R. (2009). Research Methods for Business:A skill building Approach.London:Wiley &Sons.

Shi J., Porter K., Otterson P., and Barclay I. (2004). E-Business implementation in SMEs: a success framework. IADIS International Conference e-Commerce 2004 ISDN: 972-98947-8-7: 79-86

Sushil,S.,& Verma,N.(2010). Questionnaire Validation Made Easy. European Journal of Scientific Research ,46(2), 172-178.

Sutanonpaiboon, J. and Pearson, A.M. (2006). E-commerce adoption: perceptions of managers/owners of transport enterprises (SMEs) in Thailand. Journal of Internet Commerce, Vol. 5 No. 3, pp. 53-82.

Turban, E., King, D., Lee, J. and Viehland, D. (2004). Electronic Commerce A Managerial Perspective. Prentice Hall, Upper Saddle River, NJ.

Wanjau, D. Macharia, J. and Ayodo K. (2012). The influence of leadership style, resources, infrastructure, and positioning on the adoption of electronic commerce among tour and travel firms in Nairobi. International Journal of Business and Social Science, 3(23): 65-74.

Welman, J. C., Kruger, S. . J., & Mitchell, B. (2008). Research Methodology (3 Ed.). Cape Town, South Africa; Oxford University Press.


Refbacks

  • There are currently no refbacks.