Determinants of adopting computer integration model on financial forecasting: a case of small and medium enterprises in Kisumu East District, Kenya

Abstract

The study sought to identify determinants of adopting Computer Integration Model on financial forecasting a case of Small -Medium Enterprises in Kisumu East District. The study focused on the antecedents of adoption of Computer Integration Model as driver of change for Small and Medium Enterprises in attainment of Kenya's vision 2030 and transformation of Kenya into a newly industrializing, middle income providing a high quality of life to all citizens by the year 2030.The economic growth level for Kenya according to economic survey is between 5% to 6% annually compared to growth levels of other developing countries Kenya may not be able to realize the goals as envisioned by 2030.

It is the adoption of CIM technology on financial forecasting by SMEs that is perceived as the engine of growth. in Kenya and non adoption posses a formidable risk of survival and competing in the ever-changing business market. In view of these the pace of adopting Computer Integration Model in financial forecasting of SMEs was the focus of the study. The purpose of the study was to unravel the determinants of Computer Integration Model on financial forecasting for SMEs in Kisumu East District.

The study objectives were to determine relationships between systems support readiness and Computer Integration Model adoption in financial forecasting of SMEs in Kisumu East District. The study also assessed the contribution of managerial support readiness in adopting Computer Integration Model in financial forecasting of Small and Medium Enterprises in Kisumu East District; Established how the firm size influences adoption of CIM on financial forecasting of SMEs in Kisumu East District; Examined how operational efficiency determines adoption of CIM in financial forecasting of Small and Medium Enterprises in Kisumu East District and explored the extent to which financial support readiness determines adoption of CIM on financial forecasting of Small and Medium Enterprises in Kisumu East District.

This study was anchored on Diffusion· of innovation adoption theory advanced by Rogers(1995).The study adopted descriptive survey methodology with both quantitative and qualitative approaches to source and analyze data. The study used stratified simple random procedure .A set of questions and interview guide were administered to respondents to elicit appropriate responses .The obtained responses was analyzed, synthesized and presented using statistical packages for social sciences .This program enabled variety of analysis in form of frequency distribution and percentages presented in tables.

The analysis was done based on demographic characteristics of respondents such as gender, age, education and profession followed by analysis in thematic form. The findings established that financial support and operational efficiency are lead determinants of CIM adoption on financial forecasting amongst SMEs in Kisumu East District. The study recommended that the government review school curriculum to include information technology from primary level of education to enhance proficiency and technology savvy. The study also recommended replication of the study in other parts of the country focusing more on large organizations and educational institutions.