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Impact of information technology innovation on firm performance in Kenya

Author

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  • Samwel Macharia Chege
  • Daoping Wang
  • Shaldon Leparan Suntu

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.

Suggested Citation

  • Samwel Macharia Chege & Daoping Wang & Shaldon Leparan Suntu, 2020. "Impact of information technology innovation on firm performance in Kenya," Information Technology for Development, Taylor & Francis Journals, vol. 26(2), pages 316-345, April.
    • Handle: RePEc:taf:titdxx:v:26:y:2020:i:2:p:316-345
    DOI: 10.1080/02681102.2019.1573717
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