Effect of company specific characteristics on the adoption of emerging technologies in finance functions: case of non-financial companies listed in Kenya
Date
2024
Authors
Kebati, P. N.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Over the past decade, corporations have taken advantage of low-cost and efficient technologies to automate their finance departments in a bid to gain a competitive advantage through lowering administrative overheads, improving risk management, and ensuring that data that is required for decision-making by business leaders is provided on a real-time basis to ensure quick decision making. The study aimed to assess the level of usage of emerging technologies in the finance function of listed non-financial companies in the Nairobi Securities Exchange (NSE), identify company features and the type of emerging technologies adopted, and identify opportunities for the application of emerging technologies and challenges that hinder the adaption of the emerging technologies. Leveraging the Diffusion of Innovation Theory and Technology Organization Environment Theory, data on company characteristics was collected from primary data sources through a questionnaire administered to the Chief Finance Officers and secondary data from audited financial statements of 34 listed non-financial companies to assess the influence of company characteristics on the adoption of emerging finance technologies through the use of a binary logistic regression model. The findings indicated that the level of usage of emerging technologies in the finance function of listed non-financial companies in the NSE is at the initial phase of development with 21.7% of the companies having adopted the use of emerging technologies. The binary logistic regression model analysis found that company profitability, ownership concentration and ownership concentration and CFO tenure had a negative, relationship with the adoption of emerging finance technologies whilst company liquidity, size age, board independence, number of employees in the finance department, and CFO age had a positive relationship with the adoption of emerging finance technologies and none of the independent variables had a significant relationship with the adoption of the emerging finance technologies. The study also revealed a significant lack of enthusiasm among listed non-financial companies to identify opportunities for adopting emerging finance technologies, citing challenges such as insufficient IT infrastructure, limited awareness of functionalities, and a skills gap, and recommends that Companies invest in foundational tools and necessary talent to reap the potential benefits. This research contributes to the literature on technological innovation and breaks new ground by focusing on non-financial companies listed on the NSE.
Description
Full - text thesis
Keywords
Citation
Kebati, P. N. (2024). Effect of company specific characteristics on the adoption of emerging technologies in finance functions: Case of non-financial companies listed in Kenya [Strathmore University]. http://hdl.handle.net/11071/15492