Factors Influencing Decision by Small And Medium Enterprises Managers to Adopt Information And Communication Technology in Central Business District, Kisumu City, Kenya.

Abstract

ABSTRACT Small and Medium Enterprises (SMEs) have been accepted as the engine of economic growth and for promoting equitable development. Information Communication Technology (lCT) is a major driving factor to change in many sectors of the economy including SMEs. There are a number of studies on adoption of ICT by SMEs, some of these studies have explored role of SMEs managers in ICT adoption and others have investigated factors influencing adoption ofICT. However none of these studies explored the fact that these factors influence decision by SMEs managers to adopt ICT. Moreover there is little empirical evidence on role of ICT adoption in improving SMEs operations and level of usage of ICT resources by SMEs in CBD, Kisumu city. It is on this background that the study was designed to explore factors influencing decision by SMEs managers to adopt ICT in CBD, Kisumu city. The study was guided by the following objectives; to investigate factors influencing decision by SMEs mangers to adopt ICT, to analyze the role of ICT adoption in improving SMEs operations and to establish level of usage of ICT resources by SMEs. The study employed descriptive research design and targeted 400 formally registered SMEs. Systematic random sampling was used to select 195 managers from the target population and purposive sampling was used to select key informants. Primary data was collected through survey for the managers of sampled SMEs, interview schedule for the key informants and observation. Secondary data was collected through review of literature. Data was analyzed through cross tabulation, chi square, t-test and percentages. Results were presented using contingency tables. The study established that 100% of SMEs managers who do not adopt ICT can not use a computer and 75% of SMEs managers that adopt ICT expect benefit from adoption. The research found out the mean difference of communication after and before adoption of leT is 47.76, with associated t statistics of 29.4378. The study further established that 88% of SMEs use desktop computers, 91% use application software, 84% use E mails and 81% use password. Ability of SMEs managers to use computers was found to influence decision by SMEs managers to adopt ICT, however, level of education does not influence decision by SMEs managers to adopt ICT. To increase the number of SMEs that adopt ICT, the study recommends that more SMEs managers to be trained on the usage of computer