The Determinants of Adoption of Information and Communication Technology by Small and Medium Enterprises within the Health Sector in Nairobi, Kenya
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Date
2010
Authors
Muathe, Stephen M. A.
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Small and Medium Enterprises (SMEs) playa very important role in the economy in terms
of wealth creation and provision of employment opportunities. However, competition from
more established firms poses a great challenge to their existence. With the adoption of
Information and Communication Technologies (lCTs), it was envisaged that SMEs would
compete more effectively and efficiently in both domestic and international markets, but
recent research portrays a gloomy picture about the adoption of ICT by SMEs. Most SMEs
have failed to adopt ICT citing significant impediments. Since literature on ICT adoption
by SMEs in Kenya is limited and inconsistent, this study examined the effects of various
contextual factors such as individual factors, organizational factors, technological factors,
and the external environment on the adoption of ICT by health-related SMEs in Kenya. A
cross-sectional descriptive survey design was used. The target population was 17 health-related
SMEs. In addition, 172 end - users were sampled using purposive and simple
random sampling techniques. Both primary and secondary data were used. Primary data
was collected using a semi-structured questionnaire and an interview guide. Secondary data
was collected through review of records and documents. Descriptive statistics were used to
summarize the properties of the mass data. The Logit model was used to predict the
potential effects on the determinants of ICT adoption by SMEs. Open-ended questions were
analysed by capturing the common themes, categorizing them, and drawing conclusions
from the findings. The research findings showed that age, CEO's ICT knowledge, quality of
ICT systems, information intensity, ICT specialization, organizational readiness, relative
advantage, government policies on ICT applications, and pressure from suppliers and
patients were the main determinants of ICT adoption. The study concludes that, for the
health related- SMEs to cope with the dynamics of the global competition and move Kenya
towards middle level income country as envisaged in the Vision 2030, the above nine
determinants must be addressed. The study, therefore, Recommends that government should
develop a differentiated ICT policy arid incorporate compulsory training in computer applications in the national school curriculum. In addition, SMEs should invest in quality
systems that are functioning and also technically usable. They should set a mechanism for
monitoring the changes in technological innovations as the electronic marketplace evolves.
Finally, SMEs should adopt ICT within a participatory plan.
Description
A thesis submitted to the School of Business in partial fulfillment of the requirement of Doctor of Philosophy Degree in Entrepreneurship of Kenyatta University, November 2010