Effect of strategic infomiation communication Technology adoption on performance of deposit Taking saccos in Kisii region, kenya
ARONDO, Martin Shikuku
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Globally, performance is a concern to every organization while information communication technology (lCT) has been viewed as a tool that can be adopted to strategically enhance it. Consequently, organizations have unprecedentedly adopted ICT in recent years. The unprecedented adoption of ICT has raised expectations about their potential effect on firms' performance. Deposit taking Saccos (lY[Ss) are preoccupied with sustainable performance hence contribution to Kenya's Vision 2030 yet they face competition from financial institutions. DTSs have consequently been adopting ICT yet some continue to perform poorly as seen in their dwindling membership and rate of dividend as witnessed in their final accounts. Literature acknowledges strategic contributions of ICT adoption to performance. Prior studies on ICT adoption have concentrated on its contributions to performance of manufacturing firms, micro-finance institutions, small and medium enterprises, banks and governments in terms of efficiency, profitability and service delivery. However, ICT infrastructure, innovation and policy implementation have not been studied in relation to DTS performance, therefore, their effect are not known. The main purpose was to evaluate effect of strategic ICT adoption on performance of DTSs in Kisii region. Specific objectives were to evaluate effect of ICT: infrastructure; innovations; and policy implementation on performance. Resource Based Theory considering organizational performance as a function of tangible and intangible resources and Innovation Diffusion Theory explaining how, why and what rate new technology spread guided the study within a conceptual framework. Research was designed as a correlational survey. The target population was 45 respondents comprising nine top managers and 36 departmental heads in nine Saccos. A pretest on five respondents in one Sacco confirmed instrument reliability (Cronbach's a=0.836). Subject experts at Maseno University ascertained validity. Primary data were collected from a saturated sample of 40 respondents. Using multiple regression analysis, the study found ICT infrastructure W=O.l44, p=.028) and ICT policy implementation (~=0.255, p=.022) as statistically significant positive predictors of Sacco performance, implying that a unit adoption of ICT infrastructure and policy implementation will respectively lead to an increase in the level of performance by 14.4% and 25.5% respectively. ICT innovation (~=O.171, p=.199) was not a statistically significant predictor of performance. Study concluded that continued adoption of K'T infrastructure and improved ICT policy implementation yielded better Sacco performance. Study recommended strategic adoption of ICT infrastructure and implementation of ICT policies. The study's significance is in informing: Sacco managers in adoption of ICT infrastructure and implementation of ICT policies; governments in making ICT policy implementation policies and future academic research directions.