The influence of Technological Factors on E-procurement Adoption in Small and Medium-Size Enterprises in Nyeri County Kenya
Abstract
Globally Small and Medium-Size Enterprises (SMEs) have been acknowledged as having a crucial role in the development of economies. A strong SME sector can tremendously contribute to gross domestic product and generate employment, reduce poverty levels and as well promote entrepreneurial activities. Though there are various benefits of E-procurement adoption many firms, especially SMEs, are yet to adopt the technology. This is especially so in developing countries like Kenya, where E procurement adoption is very slow. This study sought to assess the influence of technological factors on E-procurement adoption in SMEs in Nyeri County Kenya. The objective of the study was to assess the influence of technological factors on E procurement adoption by SMEs in Nyeri County, Kenya. The Resource-Based Theory guided the study. In the study, technological factors were the independent variable, while E-procurement adoption was the dependent variable. The study used a self-administered questionnaire for data collection that was issued to 105 Small and Medium-Size Enterprise business owners within Nyeri County. A Pilot study was conducted by administering five questionnaires. Data analysis was conducted using descriptive analysis in order to determine the relationship between the variables. The results were presented in tables and the findings were discussed. Based on the findings, the study concluded that technological factors such as fear of security and confidentiality of information, absence of IT infrastructure, lack of support from system vendors and developers and lack of proper needs assessment, lack of technical expertise, and unavailability of E-procurement software affects E-procurement adoption in SMEs. The findings of this study can help in deepening the understanding of obstacles that hinder E-procurement adoption by SMEs for policymakers and form a body of knowledge for referencing to scholars. The study recommends that organizations that intend to operate efficiently have to make deliberate and sustained measures to enhance their technological factors like IT infrastructure, employee or Manager IT perceptions of information technology, and build trust regarding technology to effectively adopt E-procurement in their operations to remain competitive in their areas of operation.
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