AN EVALUATION OF THE DRIVERS AND BARRIERS OF TECHNOLOGICAL INNOVATION ADOPTION AMONG SMES IN KENYA
Abstract
The small and medium enterprises (SMEs) in Kenya face huge challenges as the rate of adoption of technological innovation is very low, hence stifling their growth, competitiveness, and overall performance. This study was conducted through desk research that elicited the key drivers and barriers impacting the adoption of technological innovation, to better understand the dynamics affecting SMEs in Kenya. The purpose of this study was to develop the understanding of key drivers and barriers that impacts the adoption of technological innovation by Kenyan SMEs. This study was conducted with particular focus on four key objectives; to examine the extent of adoption of technological innovation by SMEs in Kenya, to identify drivers and barriers to adoption of technological innovation, to determine impact of organizational and government policies as a factor to adoption of technological innovation, and finally to provide recommendations to enhance the adoption of technological innovation. Technological innovation is closely linked to numerous benefits such as economic growth and competitiveness of the business among others. However, despite these advantages, uptake of innovations in SMEs in Kenya remains worryingly inadequate. This study found out that organizational and operational drivers such as the perception of usefulness, compatibility and changes in the organizational culture are key factors that facilitate the uptake of innovations among SMEs in Kenya. On the other hand, the main challenges or barriers that hinder adoption of technological innovation are costs of innovations, lack of technical skill and inadequate infrastructure. The study highlights the need for a multifaceted approach targeting policymakers, financiers and private sector players to move Kenya forward, to create the right environment that facilitates successful digital transformation and triggers growth among Kenyan SMEs.
Keywords: Technological Innovation, SMEs, Adoption, Drivers, Barriers
CITATION: Korir, D. K., & Mutua, J. (2024). An evaluation of the drivers and barriers of technological innovation adoption among SMEs in Kenya. The Strategic Journal of Business & Change Management, 11 (2), 462 – 476. http://dx.doi.org/10.61426/sjbcm.v11i2.2920
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2920
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