The Effects of organizational culture on the adoption of technology: a study of multinational corporations in Nairobi

Abstract

Business dynamics in this century have been as a result of development in globalization. The reality of the global markets and competition is prevalent. The number of multinational corporations investing in the country has been increasing and thus all multinational organizations have the objective of maintaining a competitive edge over others. This is the reason to give focus to the organizational culture of multinationals. Adoption of technology offers a platform for MNCs to compete. Adoption of technology that is rapidly changing is one the critical issues that face organizations in the global society. Further, organizations function in undefined, networked, decentralized business environments, where adoption and use of technology have become paramount to fulfilling organizational goals. Firms often seek to create an advantage out of the evolution of technological applications. To benefit from the technological applications, the culture of an organization should be flexible to ensure its adoption. This study had the objective of exploring the effects of organizational culture on the adoption of technology among multinational companies operating in developing economies; case of Nairobi, Kenya. The researcher identified four constructs that can be used to conceptualize organizational culture. These are adaptability, consistency, involvement and mission of organizational culture. These constructs were examined to understand the extent to which they affected technology adoption. Data was collected by use of questionnaires with the target population of 43 multinational corporations which had their Africa regional headquarters in Nairobi. Descriptive statistics correlation analysis and multiple correlation analysis were used to analyze the data. Adaptability, consistency, involvement and mission were examined against adoption. Finding from the study revealed that there was a positive relationship between organizational culture and adoption. Moreover, the findings revealed that all the constructs were significant in influencing adoption. The study concluded that the organizational culture owned by multinationals was critical in the adoption of technology introduction. The study recommends that multinationals should observe a culture that encourages adoption of technology and that managers should develop tools that cultivate and enhance a culture that encourages adoption. The study limitations were that it considered multinational corporations in Nairobi County. This research suggested that future research could extend to other business sectors.