Influence Of Information And Communication Technology On Performance Of Small And Medium Enterprises: A Case Of Kibra Constituency, Nairobi County, Kenya

Abstract

The purpose of this research is to examine the influence of information and communication technologies on the performance of small and medium enterprises. The study was carried on Kibra Constituency, in Nairobi County and focused on 310 SMEs. The study established how types of information communication technologies influence performance of small and medium enterprises in Kibra constituency, by finding out how the use of information communication technologies influence performance of small and medium enterprises in Kibra constituency, assessing how awareness levels on information communication technologies influence performance of small and medium enterprises in Kibra constituency, establishing the extent to which cost of information communication technologies influence performance of small and medium enterprises in Kibra constituency and ascertained the extent organizational leadership in information communication technologies influence performance of small and medium enterprises in Kibra constituency. The descriptive survey design was used to carry out this study. This study targeted small and medium enterprises in, Kibra constituency, Kenya. These enterprises consist of businesses that have been operational; each enterprise having engaged 10 or more employees to manage the day to day operations of the business. The estimated total population of small and medium enterprises in Kibra constituency is 1600. The study employed in the design of this research was descriptive correlation survey technique where a sample of 310 respondents was picked. The data was collected using questionnaires and business records from the SMEs. The data was analyzed both quantitatively and qualitatively using SPSS and content method respectively. The study established that ICT influence performance of small and medium enterprises, with cost of ICTs, being the leading determinant on performance of SMEs, followed closely by organizational leadership in ICTs. Use of ICT and awareness levels of ICT are both closely correlated on their influence on performance of SMEs. Both affecting performance of SMEs nearly on the same scale. On the use of multiple types of ICTs in SMEs the study showed that this negatively affected performance of SMEs however use of mobile technologies was most prevalent, accounting for 92% on the types of ICTs, in SMEs. It is hoped that this study is significant in the generation of new knowledge, providing business owners and scholars with information concerning the influence of ICTs on small and medium enterprises. Providing answers to questions such as which types of ICTs to adopt ICTs, when and what is ICT return on investments to the business. By providing qualitative and quantitative information about ICTs and SMEs, the study recommends that SMEs adopt focused types of ICTs that are affordable to the SMEs this are most likely to impact positively on the performance of the SMEs. Also the awareness levels in ICTs should be appraised by the SME to ensure these are in harmony with use of ICTs in the SME.