ASSESSMENT OF ICT APPLICATION BY SMALL AND MEDIUM SIZED ENTERPRISES IN THE KENYAN PROFESSIONAL SERVICE INDUSTRY: A CASE OF SMES LOCATED ALONG MPAKA ROAD (WESTLANDS)

Authors

  • Kennedy Chege Catholic University of Eastern Africa
  • Mr. J. Ntare Catholic University of Eastern Africa

DOI:

https://doi.org/10.47941/jepm.132

Keywords:

ICT application, small and medium sized enterprises, challenges

Abstract

Purpose: The study was an assessment of ICT application by small and medium sized enterprises in the Kenyan professional service industry, a case of SMEs located along Mpaka road (Westlands).

Methodology: A descriptive survey design was used as it was appropriate for reporting the way things are. A population of 124 SMEs gave rise to a sample of 25 SMES (20% of population) which were selected on a stratified non random sampling technique. The data collection instrument was a self-report questionnaire and the data was analyzed using descriptive and inferential statistics. It was then presented using graphs and charts

Results: Findings in this study indicated that though majority of SMES used various forms of ICT, they did not have faxes and internet connection. In addition, the SMEs did not use a website as an advertising tool since they did not have one and also didn't use faxes for transmitting documents such as quotations and invoices. The challenges facing ICT use by SMEs were financial in nature, infrastructural in nature and capacity (training in nature). Benefits accruing to SMEs were as delineated in literature review though regional expansion was not applicable to SMEs in the study.

Unique contribution to theory, practice and policy: The study recommended that there should be facilitation of training through workshops and courses on ICT, bridging the financial gap for SMEs, improvement in infrastructure and the internet backbone and a policy frame work on SMEs. Areas of further studies included a relationship analysis between the use of ICT and the financial performance, customer satisfaction, and staff morale in the context of SMEs.

Downloads

Download data is not yet available.

Author Biographies

Kennedy Chege, Catholic University of Eastern Africa

Undergraduate student

Mr. J. Ntare, Catholic University of Eastern Africa

Lecturer

References

Akerlof, G. A. (1970). The market for lemons: Qualitative uncertainty and the market mechanism. Quarterly Journal of Economics, 84, 488-500.

Avgerou, C. (1998): How can IT enable growth in developing countries? Information Technology for Development, 8, 15-28.

Basu, S., & Fernald, F. G. (1995). Are apparent productive spillovers a figment of Biggs, T., specification error? Journal of Monetary Economics, 36, 165-188.

Blili, S., & Raymond, L. (1993). Information technology: Threats and opportunities for small and medium-sized enterprises. International journal of information management, 13(6), 439-448.

Brynjolfsson, E., & Hitt, L. (2000). Beyond computation: Information technology, organizational transformation and business performance. Journal of Economic Perspectives, 14, 23-48.

Duncombe, R., & Heeks, R. (2001). Information and communication technologies and small enterprise in Africa: Lessons from Botswana, IDPM University of Manchester.

Matambalya, F. (2000). The significance of information and communication technologies (ICTs) for economic productivity in Africa: Micro level evidences from a survey of small and medium scale enterprises (SMEs) in Tanzania. Internationales Afrika Forum, 3, 271-278.

Pohjola, M. (1998). Information technology and economic development: An introduction to the research issues. Working Paper, UNU/WIDER.

Power, L. (1998). The missing link: Technology, investment and productivity. The Review of Economics and Statistics, 80 (2), 300-313.

Shultz, T. (1975). The value of ability to deal with equilibria. Journal of Economic Literature, 13, 827-896.

Söderbom, M. and Teal, F. (2000): Skills, Investment and Exports from Manufacturing Firms in Africa. Journal of Development Studies, 37(2), 13-43.

Söderbom, M. and Teal, F. (2001): Firm Size and Human Capital as Determinants of Productivity and Earnings: New Evidence from Manufacturing Firms in Ghana. Paper presented at the Annual Conference 2001 of the ESRC Development Economics Study Group, Nottingham.

Söderling, L. (2000): Dynamics of export performance, productivity and real effective exchange rate in manufacturing: The case of Cameroon. Journal of African Economies, 9(4), 411-429.

Srivastava, P. (1996). Structural aspects of manufacturing in sub-Saharan Africa. World Bank Discussion Paper No. 346. Africa technical Department Series, 1996.

Torero, M. (2000). The access and welfare impacts of telecommunications technology in Peru. ZEF Discussion Papers on Development Policy No. 27, Bonn.

Tybout, J. (2000). Manufacturing firms in developing countries: How well do they do, and why? Journal of Economic Literature, 38 (1), 11-44.

Weir, S. (1999). The effects of education on farmer productivity in rural Ethiopia. CSAE Working Papers Series 99-7, Oxford.

World Bank (2001 a). World development indicators, GDN webpage, Washington.

World Bank (2001 b). Competitiveness indicators database, WB webpage, Washington.

Downloads

Published

2017-03-13

How to Cite

Chege, K., & Ntare, M. J. (2017). ASSESSMENT OF ICT APPLICATION BY SMALL AND MEDIUM SIZED ENTERPRISES IN THE KENYAN PROFESSIONAL SERVICE INDUSTRY: A CASE OF SMES LOCATED ALONG MPAKA ROAD (WESTLANDS). Journal of Entrepreneurship and Project Management, 2(1), 91–108. https://doi.org/10.47941/jepm.132

Issue

Section

Articles