Influence of E-services Strategy on the Performance of Parastatals in Kenya

Abstract

The general objective of this study was to determine the effect of e-services strategy on the performance of parastatals in Kenya. In particular, the study examined how strategies such as service flexibility, e-reporting, e-documentation and cost reduction affect the performance of the parastatals. The study was guided by resource-based view and technology acceptance theory. Resource-based view argues that a firm is able to attain competitiveness by offering quality and superior services and products to its customers. The RBV theory gives a good foundation for this study since it acknowledges that economic resources have the potential to influence e-service strategy adoption. Technology acceptance theory denotes that people have a desire to lower disharmony by changing their way of thinking, their practices and convictions of by either justifying or advocating for them. Technology acceptance theory was essential to the study because it holds that the perceived usefulness of any technological device is the main determinant of its use within a firm. The study was premised on a cross-sectional descriptive survey research design. A random sample of 65 parastatals was targeted. Primary data collected through a questionnaire was used. The data was analyzed using descriptive statistics and multiple linear regression. The results revealed that Kenyan parastatals implement e-service strategies to a large extent. In addition, it was found that each of the e-service strategies had a positive and significant effect on the performance of the parastatals. Based on these findings, it was concluded that e-service strategies facilitates creation of unique value and competitive advantage, which in turn leads to improvement in the performance of the parastatals. In this regard, the study recommends that parastatals conduct regular evaluations to gauge the satisfaction of the public with their services, revamping of the existing IT infrastructure and crafting of stricter policies geared towards protection of the citizens’ private information.