Information Communication Technology Adoption, External Environment and Firm Performance of Small and Medium Enterprises in Kiambu County, Kenya

Abstract

The research aimed to explore the impact of Information4Communication4Technology (ICT) adoption on the performance of SMEs in Kiambu County. It assessed the link between ICT adoption and SMEs' performance in Kiambu County as well as the impacts of the external environment on the relationship between ICT adoption and the performance of SMEs in Kiambu County. The study was grounded in two theories: the diffusion of innovations and the technology acceptance model. The study utilized a crosssectional survey reliant on questionnaires. The study population comprised all registered Small and Medium Sized Enterprises (SMEs) in Kiambu County. The study targeted a sample of 385 respondents; 286 respondents completed the questionnaire, equivalent to a 74.3% response rate. Data analysis was done, and correlation was calculated. The results showed a moderate positive correlation (r=0.494) between the relationship of ICT adoption (Frequency4of usage of ICT tools) and SMEs' performance. The results also showed a weak positive correlation (r=0.149) between the external environment and SMEs' performance. The results show that an increased frequency of ICT tool usage would lead to increased SMEs' performance in Kiambu County by 0.188. The researcher proposes additional studies to assess the combined impact of ICT adoption and the external environment on SME's performance.