The Role of infrastructure investment and technology adoption on firm performance: a case study of Safaricom, Kenya

Abstract

Infrastructure investment and technological adoption promote an enabling environment for economic development. This study investigates the role of infrastructure investment and technological adoption in Kenya's economic development using Safaricom PLC as a case study because it is the country's leading telecommunication company. Safaricom PLC has made significant investments in infrastructure, such as network towers and fibre optic cables, and has adopted advanced technologies, including mobile money services and 5G networks. This research examines the role of Safaricom’s infrastructure investment and technological adoption in boosting Kenya’s economic development. Moreover, it analyses the association between infrastructure investment and technological adoption in boosting economic development in Kenya. The research employs a descriptive research design, utilizing secondary data collected from Safaricom’s financial and investment reports on the company’s official website covering the years 2020 to 2024. The data is analysed using SPSS applying multiple regression analysis to explore the relationships between infrastructure investment, technological adoption, and economic growth. Key metrics include revenue growth, market share expansion, and operational efficiency. Preliminary findings indicate a strong positive correlation between infrastructure investments and revenue growth, alongside significant contributions of technological adoption to market expansion and operational efficiency. This study addresses existing gaps in the literature by focusing on a telecommunication firm in Kenya, offering practical insights for policymakers and investors. The findings emphasize the need for targeted investment policies and regulatory frameworks to maximise the role of infrastructure and technology in driving economic development.