Factors influencing Information Communication Technology adoption among logistics and transport firms in Nairobi, Kenya

Getambu, Sofia
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Strathmore University
Globalization has transformed the world’s economy. The steady growth in world economies has tremendously increased industry’s demand for the rapid and timely delivery of goods. Transport and logistics is considered the lifeline of many economies as it facilitates globalisation by feeding into all other industries by delivering people and products where they are needed and thereby increasing the overall national outputs. Due to globalisation and increased trade in the world brought about by ICT and the increased use of the internet, there have been enormous growth and innovation in the ICT sector affecting all industries worldwide that are bringing great benefits to companies; however, the transport and logistics firms tend to be slow in the uptake of these technologies. Organizations stand to gain enormously upon adoption of ICT in terms of efficiencies and effectiveness of their operations. The transport and logistics industry is a vibrant sector in the economy can greatly benefit from the adoption of ICT. However, despite the growth and known impact of ICT, the transport and logistics sectors seem to have low adoption rates. To the best of our knowledge, there is little empirical literature identifying the main barriers to ICT adoption specifically in the logistics and transport industry. In the current environment, where a global pandemic has devastated the logistics industry, it was critical to conduct this study and enhance available empirical evidence. This study sought to investigate the extent of information technology and communication adoption in logistic firms and identify the factors that influence ICT adoption among logistics firms in Nairobi, Kenya. Specifically, the study sought to establish the effect of government factors, resource capability, management capability, and organization structure on ICT adoption. The research was grounded on the diffusion of innovation theory and the technology, organization, and environment framework. This study employed a positivism research philosophy with descriptive research being adopted. The study sample, as calculated by the Yamane formula, was 260 logistics firms with one senior-level manager being considered as the unit of observation. The final sample for the study was 240 respondents, with 20 participants being considered during the pre-test of the research instrument. The study relied on primary data that was collected using structured questionnaires. The collected data was edited and coded into SPSS for statistical analysis. The study relied on both descriptive and inferential analysis. The results were presented graphically in line with the objectives of the research. The study results showed there is a positive and significant correlation between government factors, resource capability, management capability, and organization structure on the ICT adoption. The regression results established that 62.2% of the changes in ICT adoption are determined by the government factors, resource capability, management capability, and organization structure. The research concluded there is a positive and significant influence of government factors, resource capability, management capability, and organization structure on the ICT adoption. The study recommended that the management team within the firms should improve their financial resource mobilization, recruitment of qualified employees, invest in modern technological infrastructures and enhance the delegation of duty to staff. The research also recommended that policy-wise the government should improve the business environment and provide incentives through regulations to improve competitiveness and ICT adoption within transport and logistic firms.
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Information Communication Technology (ICT), Logistics, Transport firms