Drivers of Information Communication Technology Adoption by Small and Medium Enterprises: A Case of Klynveld Peat Marwick Goerdeler Top 100 Small and Medium Enterprises

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Benson, Baituru Mwongela
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Kenyatta University
The SME sector is important in the social economic development of Kenya and is perceived as an engine for economic growth. However, SMEs seem ill equipped to confront the challenges of globalization, whose hallmark is ICT and information a major determinant of competitiveness. Whereas large enterprises have embraced ICT to gain a competitive edge, evidence relating to ICT adoption and use by SMEs has suggested a slow response and limited progression. The objective of the study was to establish the determinants of ICT adoption by small and medium enterprises: A case of KPMG Top 100 SMEs. The study specifically sought to determine the extent to which knowledge of ICT, availability of ICT infrastructure, availability of enabling policies and perceived benefits affects ICT adoption by SMEs in Kenya. The study adopted descriptive research design. The target population was the KPMG top 100 SMEs in Kenya (2015). Since the population is small, a census study was adopted whereby the entire population of Top 100 SMEs (2015). The respondents were the ICT managers in the targeted SMEs. The study will collect primary data using a questionnaire which will contain both closed and open ended questions. A pilot test was conducted to test the validity and reliability of the questionnaire. The questionnaire was personally administered to the respondents, drop and pick later method was adopted. Both descriptive and inferential statistics were adopted in analyzing the data. The quantitative data was analyzed using descriptive statistics which included frequency distribution tables, mean and standard deviation while the qualitative data was analyzed in prose form. The regression model was adopted to establish the relationship between variables. Data was presented using tables, charts and graphs. The study found out that staff had the right skills and training to use technologies in the firms and that the staff were also aware of the ICT being adopted in the organizations. Majority of the SMEs had adequate computer systems and telephone line connections that enhanced the adoption of ICT. The study also found out that the growth of infrastructure such as Fiber optics had enhanced internet growth in small businesses. The study however established that the SMEs did not have sufficient principles and procedures to guide on the adoption of ICT in the firms. The study concludes that there was a positive and statistically significant relationship between knowledge on ICT and adoption ICT by SMEs. The study also concludes that there is a positive and significant association between ICT infrastructure and adoption of ICT. The existence of adequate infrastructure enhanced the adoption of ICT. The study concludes that the perceived benefits of the ICT being adopted are key to the adoption of ICT by SMEs. The benefits that ICT seeks to offer to the organization, employees and to the customers are a major determinant or drive of ICT adoption. The study recommends that the management of SMEs should ensure that the staffs are well trained on the use of technologies to ensure they are competent to use the technologies. The study recommends that the management of SMEs in should formulate ICT policies to facilitate ICT adoption in the organizations.
A Research Project Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Masters in Business Administration (Management Information System), Kenyatta University