Determinants of Adoption of Cloud Practice Accounting in Insurance Firms in North Rift Region, Kenya

Abstract

Administrations in the insurance firms need to take advantage of cloud expertise to appreciate augmented efficiency and improved efficiency in organizational operations. However, insurance firms in North Rift Region of Kenya are reluctant to embrace cloud technology wholly; the developing drift is the non-core applications deployment such as email on the cloud. The study objective was to establish the determinants of adoption of cloud practice accounting among insurance firms in North Rift Region of Kenya. Technology-Organization-Environment (TOE) Framework and Diffusion of Innovation (DOI) Theory were adopted in this study. A descriptive survey design was adopted. The targeted population was insurance firms in North Rift Region of Kenya. The target population was 31 insurance firms. The study used survey. The research mainly gathered primary data. This type of data was gathered using a questionnaire. Data analysis was done with the aid of SPSS (Version 20.0). Descriptive (percentages, frequencies, mean as well as standard deviation) as well as inferential statistics were adopted to analyse the data. ANOVA was used to examine the influence of the identified determinants on cloud practice accounting adoption among insurance firms. The findings of the study indicated that there was a significant statistical effect of availability of technology (r=0.574, p=0.000); cost savings (r=0.536; p=0.000); regulatory support (r=0.348; p=0.000) and top management support on adoption of cloud practice accounting of insurance firms (r=0.422; p=0.000). ANOVA model predicted the adoption of cloud practice accounting among insurance firms in North Rift Region significantly well (p=0.000a). The study concluded that availability of technology affects adoption of cloud practice accounting among insurance firms. Since cloud practice accounting is an equally new technology, availability of supporting technologies affects adoption of cloud practice accounting. Cost savings has a significant relationship with adoption of cloud practice accounting. There is a correlation between regulatory support and cloud practice accounting adoption. Top management support affects adoption of cloud practice accounting. The top management of the insurance companies offer the vision and commitment for innovation and creates environments that foster this modernization. The study recommended that top management ought to invest in IT technologies that will aim towards the advantage of their insurance firms. Insurance firms in their desire to adopt new technologies should ensure they comply with regulations governing adoption of new technologies. Insurance firms should invest in information technology that will work towards the benefit of their organization.