THE ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGY ON PROFITABILITY OF SMALL AND MEDIUM ENTERPRISES: CASE OF NAIROBI CITY COUNTY
THE ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGY ON PROFITABILITY OF SMALL AND MEDIUM ENTERPRISES: CASE OF NAIROBI CITY COUNTY
Twaha Sakwa Waziri - Student, Master of Arts in Public Policy and Administration, Kenyatta University, Kenya
Jane Njoroge - Lecturer, Department of Public Policy and Administration, Kenyatta University, Kenya
ABSTRACT
Small businesses in Kenya have embraced the application of technological advances in communication and information to enhance their performance and profitability in the current challenging business environment. This was particularly exacerbated by the Covid-19 pandemic that forced them adopt to the new technological advancements in order to stay afloat. However, the effect of technological innovation regarding the profitability of premises is still understudied in Kenya with reference to Kasarani sub-county in Nairobi County. The research especially looks to investigate the impact of data and conversation modern advances on the success of minor and medium-sized businesses in Nairobi City County.; to assess the role of Information Communication Technology on the quality of products and services of Small and Medium Enterprises in Kasarani Sub-County; and to determine the duty of information and Communication Technology on efficiency of Small and Medium Enterprises in Nairobi City County. The study is grounded on two theories, that is the unified hypothesis of adoption and utilization of modern advances theory and the diffusion of technology hypothesis. The research employed the methodology of an informative study, for this study, it aimed demography of owners and managers of all registered Small and medium-sized businesses with reference to Kasarani sub-county in Nairobi County, who total 2,136 as per the Nairobi County Government. The researcher computed the desired sample using the Yamane equation to get the desired sample size. This formula gives a sample size of 96 owners/managers of businesses, from a directory attributed to all licensed SMEs, who will be chosen in Kasarani sub-county in Nairobi County, by simple random sampling technique. Primary data was used in this investigation, which was quantitative in nature and obtained using structured questionnaires. Preliminary research was conducted before the core investigation. The test is performed to evaluate the precision and dependability of the investigation's equipment. Participants’ responses were enumerated based on a five-point Likert scale. The drop and pick technique were then employed in questionnaire administration in the main study, whereby respondents were given a week to respond. After collection of the data, the study assessed the questionnaires for completeness after which coding and entry of the data followed. Data analysis was then conducted utilizing version 27 of the Statistical Processing System for the Social Sciences. Both inferential and descriptive analyses were utilized in this regard. Results indicate that that information and Communication Technology and profitability has a significant effect on SME performance (β = .813, Sig. = .015<.05. In conclusion, the findings highlight the potential of information and communication technology to drive financial gains elevate product standards, streamline operations, and emphasize the need for supportive policies and practices to foster technology adoption and enhance SME success.
