Open-Source Software Adoption and Organizational Growth of Safaricom Public Limited Company, Kenya
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Date
2025-01
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Kenyatta University
Abstract
Safaricom PLC, a leading telecommunications company in Kenya, has experienced significant growth since its inception, expanding its services and market share in East Africa. This success is largely due to the adoption of mobile technology, innovative services like M-Pesa, and strategic infrastructure investments. However, recent data suggests that Safaricom's growth may be slowing. Metrics such as revenue growth, subscriber acquisition, and market penetration indicate challenges that could hinder its momentum. Factors include increased competition, market saturation, regulatory pressures, and economic fluctuations affecting consumer spending. Therefore, this study investigated the influence of open source software adoption on the growth of Safaricom Public Limited Company in Kenya. This study was guided by the technology organisation environment framework, the balanced scorecard model, the resource-based view theory, and the technology acceptance model. A descriptive research design was employed for this study. The sample consisted of 679 individuals drawn from the Digital IT department of Safaricom PLC, situated in Nairobi City County, Kenya. A random sampling method was utilised to select the participants, resulting in a final sample size of 252 respondents. Primary data was gathered using a structured questionnaire that included both closed and open-ended questions. A pilot test was conducted with 25 questionnaires, and the participants from this test were excluded from the final analysis. The reliability of the questionnaire was assessed using the split-half technique, while content, construct, and criterion validity tests were performed to ensure the validity of the instrument. The qualitative data analysis was based on identifying themes and presenting them narratively. To evaluate the importance of each variable, inferential statistical methods such as multiple regression and correlation analyses were utilized. The results were illustrated through tables and figures. The research indicated a significant positive relationship among the technological context, environmental context, organisational context, and the growth of Safaricom Public Limited Company in Kenya. The study concluded that customer trust plays a vital role in promoting customer loyalty and satisfaction, as clients tend to engage more with companies that emphasise the security and privacy of their data. Furthermore, the study determined that the swift progression of technology has allowed Safaricom to improve its service delivery and operational efficiency. An expanding middle class coupled with increasing disposable incomes establishes a conducive market for Safaricom's offerings, propelling revenue growth as a greater number of consumers engage with mobile technology. A robust and flexible corporate culture promotes innovation and motivates employees to share their ideas and efforts in pursuit of the company's objectives. The study recommends that Safaricom should conduct regular workshops and seminars aimed at informing employees, developers, and stakeholders about the advantages of open source software. Safaricom ought to collaborate with governmental bodies to establish a regulatory framework that promotes the adoption of open source software (OSS), thereby affirming its status as a legitimate alternative to proprietary software. Additionally, Safaricom should cultivate an organisational culture that prioritises collaboration, transparency, and innovation by implementing internal initiatives that emphasise the advantages of OSS, including cost efficiency, adaptability, and community backing.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Management Information Systems) of Kenyatta University, January, 2025
Supervisor;
1.Morrison Mutuku