A Critical Analysis of Adoption of Information Technology in Fostering Supply Chain Innovation and Entrepreneurship in Devolved Governments in Kenya
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Date
2021-12-31
Journal Title
Journal ISSN
Volume Title
Publisher
European Journal of Business and Management
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.
Description
Keywords
Information Technology, Innovation, Entrepreneurship, Supply Chain and county government