The Impact of Information Communication and Technology on the Productivity of Small and Medium Enterprises (a Case Study of Smes Within Kisii Municipality)

Abstract

The environment in which small and medium-sized businesses (SMEs) operate is fraught with a great deal of unpredictability and is never static. Small and medium-sized businesses must be as dynamic as their surroundings in order to remain relevant and competitive in comparison to larger industry competitors. In the continuous process of evolution, the significance of Information and Communication Technology (ICT) cannot be overstated. Facilitating the swift transformation of the business landscape, technology plays a crucial role. The primary aim of this research was to assess the influence of information communication and technology on the productivity of small and medium enterprises (SMEs). To achieve this, the study aimed to identify the fundamental factors affecting the productivity of SMEs, examine the impact of ICT tools employed by firms on SME productivity, analyze the effects of ICT on the productivity of SMEs, and propose recommendations to enhance SME productivity through the effective utilization of ICT. Descriptive research design was adopted to guide on the application and type of data analysis carried out. Descriptive research design works on an identified study population hence the need to select samples to determine and analyze occurrences. The study adopted questionnaires for data collection from the respondents. The research employed regression analysis on the gathered data in order to ascertain the correlation between innovation, capital, labor, training, and the utilization ofICT tools and labor. The study revealed that small and medium enterprises should utilize modern ICT tools to achieve their goals. The study concluded that capital, labour, education; ICT tools used and innovation have a significance relationship on productivity of firms. The study made the following recommendations; SMEs should adopt modern ICT tools which will assist in business management practices. The SMEs should organize training for the employees. The county government of Kisii should set up research center which would facilitate innovation of new products in the market.