Impact of information technology innovation on firm performance in Kenya

ABSTRACT

Information communication technology (ICT) is driving modern employment creation with networking sites enabling people to interact through innovation. However, ICT uptake and implementation differ due to moderating factors such as entrepreneur innovativeness, which enhances how technology innovation impacts organizational performance. This study examines the association between technology innovation and firm performance in Kenya by considering the impact of entrepreneur innovativeness on this association. A sample of 240 enterprises and structural equation modeling were used in the analysis. The findings indicate that technology innovation influences firm performance positively. The study recommends that entrepreneurs should develop innovative strategies to actualize firm performance. Government policy should aim at improving ICT infrastructure; promoting small and medium-sized enterprises’ (SMEs’) technological externalities within the industry, and establishing ICT resource centers to support SME performance. The study’s findings enrich existing theories and contribute to business management practices in both developed and developing countries.

KEYWORDS:

• ICT innovation: SME
• business environment: firm performance: developing country

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Samwel Macharia Chege is a PhD student at Donlinks School of Economics and Management, University of Science and Technology Beijing, China. He holds a Masters’ Degree in Entrepreneurship, from Jomo Kenyatta University of Agriculture and Technology in Kenya. He has wealth of experience in technology innovation and enterprise management at Chuka University, Kenya. His research interests are in technology innovation, business management and entrepreneurship.

Professor Daoping Wang is a professor at Donlinks School of Economics and Management, University of Science and Technology Beijing. He holds a postdoctoral degree from Tsinghua University, China. His research interest includes; Supply Chain Management, Logistics Management, Information Management, Data Mining and Warehouse, IT Project Management and Electronic Business. He has many publications in high impact journals.

Shaldon Leparan Suntu holds a Masters’ Degree in Information and Communication Engineering from the University of Science and Technology Beijing. His research interest include; Technology innovation, Wireless Network Security, Networking, Databases, Web Design, Data Privacy and mobile telephony. He has several publications in his area of interest.

ORCID

Samwel Macharia Chege http://orcid.org/0000-0002-1543-7972