A Critical Analysis of Adoption of Information Technology in Fostering Supply Chain Innovation and Entrepreneurship in Devolved Governments in Kenya

Abstract

Kenya being a developing nation is faced with unemployment challenges, unstructured entrepreneurial activities, and poor performance of devolved governments. These challenges have led to dwindling economic performance and growth. With the adoption of devolved system of governance, there has been a progressive demand for innovative and transformative leadership for entrepreneurial development and performance. To address the challenges of inefficiencies and ensure effective delivery of public services, the national government has incorporated Information Communication Technology in almost all its operations. ICT is a pillar in accessing government’s services by the citizens. Integrated Financial Management Information Systems (IFMIS), an ICT system, was conceived in 1998, but was rolled out in 2003for implementation in national government and 2013 in devolved governments. IFMIS was implemented to enhance efficiency of financial management and encourage adoption of modern public expenditure management practices. Since its inception, IFMIS has seen tremendous improvement in government service delivery. Besides the benefits of IFMIS, there have been challenges like inadequate personnel capacity, inappropriate implementation strategies, unclear government policies and inadequate ICT infrastructure. The objective of the study was there to conduct a Critical Analysis on Adoption of Information Technology in Fostering Supply Chain Innovation and Entrepreneurship in Devolved Governments in Kenya. Study was anchored on economic entrepreneur agency, resource-based view theory and adopted multiple case study design. Units of analysis comprised 14 Lake Region Economic Block (LREB) county governments. The study targeted 196 staff including procurement officers, chief officers and procurement committee members. Primary data were used. Pilot results (n=2) revealed 20 item instrument reliability (α=0.9563). Study finding (n=181 (92.3%) results in two retained attitudes (positive and negative) comprising 7 items with a good fit (p<.005). Bivariate ordered probit regression analysis revealed that IMFIS adoption are significantly associated with procurement performance (p<0.05) and supplier adoption of IFMIS are significant ( =2.12; p=0.001). This means that they significantly affect procurement performance. Study concluded that adoption of information technology has a positive and significant effect on supply chain innovation and entrepreneurship. Supply chain management aspect was found to be statistically significant at only good (p=0.036) and very good levels (p=0.033). The result also reveals for a unit increase in supply chain management aspects, would lead to (( =-0.42; p=0.032)) decrease in performance. Study recommends for supply chain innovation and entrepreneurship development the county governments of Kenya should fast track the information technology hubs development. Study may be important to national and counties in informing policy direction about information technology adoption and development towards improving procurement performance and service delivery.