The effect of digitalization on the operational efficiency of telecommunication firms in Kenya
Date
2023
Authors
Wandeto, P.
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Journal ISSN
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Publisher
Strathmore University
Abstract
Kenya’s telecommunication sector has grown tremendously in recent years, and this has been attributed to growth in the digital economy, mobile uptake, and internet penetration. Despite this growth, little scholarly work has been conducted to examine the effect of digitalization on the operational efficiency of telecommunication firms in Kenya. In particular, the study examined the effect of digital literacy on the operational efficiency of telecommunication firms in Kenya, established the effect of organizational digital capability on the operational efficiency of telecommunication firms in Kenya, and found out the effect of digital investment on the operational efficiency of telecommunication firms in Kenya. The study focused on the leading mobile telecommunication companies, and mobile service providers in Kenya with the three main telecommunication firms: Safaricom Ltd, Airtel Networks Kenya Ltd, and Telkom Kenya Ltd serving as data sources. In the examination of the effect of digitalization on operational efficiency among firms in telecommunication, this study used Diffusion of Innovation Theory, Resource- based Theory and Queueing Theory. This study used a descriptive research design and all 280 employees serving in different employment cadres at Safaricom Ltd, Airtel Networks Ltd, and Telkom Ltd constituted the target population. In identifying target departments, the study used a purposive sampling technique and stratified sampling was used to select a sample of 165 employees working in the five sections/departments. Data collection was conducted using a questionnaire. The study analyzed the data collected using descriptive analysis and regression analysis. A quantitative approach was used for data analysis. The findings showed that the independent variables (Digital literacy, Digital capability, and Digital investment) explain 57.6% of the variability of the dependent variable (operational efficiency). The study findings show that there are telecommunication firms that have not fully committed adequate financial resources for digitalization and digital literacy can help employees achieve their goals more quickly. ANOVA results tested whether overall regression model was a good fit for the data. The results show that the independent variables statistically predict dependent variable p=001 (
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Citation
Wandeto, P. (2023). The effect of digitalization on the operational efficiency of telecommunication firms in Kenya [Strathmore University]. http://hdl.handle.net/11071/13375