Critical success factors affecting adoption of technological innovations and its influence on staff performance and revenue collection at Kenya Revenue Authority
Date
2023
Authors
Mak’Osewe, F. A.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Leveraging technological innovations in tax administration has become an integral part of increasing compliance rates, improving service delivery, increasing the tax base and subsequently revenue mobilization. In the wake of Kenya Revenue Authority’s (KRA) growing thrust to invest in technological innovations for delivering public service value, there is no visibility of adoption rates or evidence of evaluation, documentation or tracking of awareness rates, adoption rates or factors influencing uptake of these technologies internally. There is also no evidence of evaluating the effect of this adoption on work performance or revenue collection. The study sought to investigate factors affecting the adoption of new technological solutions in tax administration with a specific focus on KRA. The specific objectives included to: determine awareness and adoption rates, determine critical success factors for adoption of technological innovations and evaluate the influence of adoption of these technologies on staff performance and revenue collection. This was a cross-sectional study, quantitative in nature, that attempted to test and validate the conceptual framework which combined Adoption of Innovation (DOI) theory and Technology Acceptance Model (TAM) to guide the study. The study population comprised of all 7,955 KRA staff and targeted a sample of 370 respondents determined using stratified random sampling. A structured anonymous online survey was used to collect primary data while secondary data constituted KRA reports and corporate plans. The study involved a theoretical and empirical review of literature relevant to the research objectives and research questions. Descriptive statistics, content analysis, correlation and regression analysis were conducted to help predict the dependent variable given the independent variables. Findings were organised, summarised and presented using tables and graphs to ultimately answer the research questions, provide conclusions, recommendations and areas for further research. Study findings shows that there is high awareness rate and high adoption rate of technological innovations by KRA staff. The critical internal predictors of innovation adoption of systems at KRA were found to be complexity, compatibility with job needs, triability, observability of benefits, good corporate governance around innovation, adopter characteristics of staff and effective communication channels whereas the critical external predictors of innovation adoption by staff were benchmarking and corruption. The study also concluded that adoption of technological innovations has a positive and statistically significant influence on both staff performance and revenue collection and recommends close monitoring of complexity, observabiltity, good governance and corruption as they can lead to adverse effects on adoption by staff.
Key words: Tax Administration, Tax Revenue, Innovation, Technological innovation, Diffusion of Innovation and Innovation Adoption
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Full- text thesis
Keywords
Citation
Mak’Osewe, F. A. (2023). Critical success factors affecting adoption of technological innovations and its influence on staff performance and revenue collection at Kenya Revenue Authority [Strathmore University]. http://hdl.handle.net/11071/13395