IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-5p1649-1667.html
   My bibliography  Save this article

Determinants of Electronic Tax Invoice Adaption among SMEs in Embakasi Sub-County, Nairobi County

Author

Listed:
  • Risper Ouso

    (Bomet University College)

Abstract

The purpose of this study was to examine the effect of perceived benefit, perceived security, and relational trust on the adoption of electronic tax invoices among small and medium enterprises (SMEs) in Kenya. The study was guided by the Innovation Diffusion Theory, the Technology Acceptance and Use of Technology Theory, and the Standard Economic Theory. An explanatory research design was adopted, targeting a population of 859 SMEs operating in Embakasi Sub-County. A sample size of 273 SMEs was selected using stratified and simple random sampling techniques. Primary data were collected through semi-structured questionnaires and analyzed using descriptive statistics and inferential methods, including regression analysis. The results showed that perceived benefit, perceived security, and relational trust all had significant and positive effects on the adoption of electronic tax invoices. The study concludes that technological readiness among SMEs enhances the positive influence of these factors on e-tax invoice adoption. These findings support the Technology Acceptance and Use Theory by demonstrating the importance of intention to use technology, and align with the Innovation Diffusion Theory by showing how perceived advantages, trust, and security drive adoption. The study recommends that SME management prioritize these factors when implementing e-tax invoicing, while policymakers should develop supportive legal frameworks and invest in infrastructure and human capacity to facilitate technology adoption.

Suggested Citation

  • Risper Ouso, 2025. "Determinants of Electronic Tax Invoice Adaption among SMEs in Embakasi Sub-County, Nairobi County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 1649-1667, May.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:1649-1667
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-5/1649-1667.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/determinants-of-electronic-tax-invoice-adaption-among-smes-in-embakasi-sub-county-nairobi-county/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Hart & Carol Saunders, 1997. "Power and Trust: Critical Factors in the Adoption and Use of Electronic Data Interchange," Organization Science, INFORMS, vol. 8(1), pages 23-42, February.
    2. My Nguyen & Justin Hung Nguyen, 2020. "Economic policy uncertainty and firm tax avoidance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 3935-3978, December.
    3. Oyebola Okunogbe & Fabrizio Santoro, 2023. "Increasing Tax Collection in African Countries: The Role of Information Technology," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 57-83.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Venugopal Gopalakrishna-Remani & Robert Paul Jones & Kerri M. Camp, 2019. "Levels of EMR Adoption in U.S. Hospitals: An Empirical Examination of Absorptive Capacity, Institutional Pressures, Top Management Beliefs, and Participation," Information Systems Frontiers, Springer, vol. 21(6), pages 1325-1344, December.
    2. Rambabu Lavuri & Abhinav Jindal & Umair Akram & Bhukya Koteswara Rao Naik & Alrence Santiago Halibas, 2023. "Exploring the antecedents of sustainable consumers' purchase intentions: Evidence from emerging countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 280-291, February.
    3. Moriuchi, Emi & Takahashi, Ikuo, 2022. "The role of perceived value, trust and engagement in the C2C online secondary marketplace," Journal of Business Research, Elsevier, vol. 148(C), pages 76-88.
    4. Knoppen, Desirée & Sáenz, María Jesús, 2017. "Interorganizational teams in low-versus high-dependence contexts," International Journal of Production Economics, Elsevier, vol. 191(C), pages 15-25.
    5. Sang M. Lee & Seong-Bae Lim & Domingo Ribeiro Soriano, 2009. "Suppliers’ Participation in a Single Buyer Electronic Market," Group Decision and Negotiation, Springer, vol. 18(5), pages 449-465, September.
    6. Shawn A. Trivette, 2017. "Invoices on scraps of paper: trust and reciprocity in local food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(3), pages 529-542, September.
    7. Sanjith Gopalakrishnan & Moksh Matta & Hasan Cavusoglu, 2022. "The Dark Side of Technological Modularity: Opportunistic Information Hiding During Interorganizational System Adoption," Information Systems Research, INFORMS, vol. 33(3), pages 1072-1092, September.
    8. Nagy, A., 2009. "Adoption of interorganizational information systems : The adoption position model," Other publications TiSEM af471297-bf03-43bf-88c1-4, Tilburg University, School of Economics and Management.
    9. Pauline Ratnasingam, 2001. "The Need for Inter-Organizational-Trust in Web-Enabled Supply Chain Management," Vision, , vol. 5(1_suppl), pages 55-65, January.
    10. Yue-Ming Guo & Wai-Ling Ng & Fei Hao & Chen Zhang & Shu-Xu Liu & Adil Masud Aman, 2023. "Trust in Virtual Interaction: The Role of Avatars in Sustainable Customer Relationships," Sustainability, MDPI, vol. 15(18), pages 1-17, September.
    11. Enrique Mu & Howard Stern, 2018. "A Contingent/Assimilation Framework for Public Interorganizational Systems Decisions: Should the City of Pittsburgh and Allegheny County Consolidate Information Technology Services?," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1611-1658, November.
    12. Kauremaa, Jouni & Kärkkäinen, Mikko & Ala-Risku, Timo, 2009. "Customer initiated interorganizational information systems: The operational impacts and obstacles for small and medium sized suppliers," International Journal of Production Economics, Elsevier, vol. 119(2), pages 228-239, June.
    13. Choi, Young Rok & Phan, Phillip H. & Choi, Jaepil, 2020. "Formal governance, interfirm coordination, and performance in partnerships: An empirical investigation of a mediation model," European Management Journal, Elsevier, vol. 38(3), pages 413-424.
    14. Perrons, Robert K., 2009. "The open kimono: How Intel balances trust and power to maintain platform leadership," Research Policy, Elsevier, vol. 38(8), pages 1300-1312, October.
    15. Tomiura, Eiichi & Kumanomido, Hiroshi, 2023. "Impacts of inter-firm relations on the adoption of remote work: Evidence from a survey in Japan during the COVID-19 pandemic," Japan and the World Economy, Elsevier, vol. 68(C).
    16. Gefen, David, 2000. "E-commerce: the role of familiarity and trust," Omega, Elsevier, vol. 28(6), pages 725-737, December.
    17. Yang Liu & Moses Olabhele Esangbedo & Sijun Bai, 2019. "Adaptability of Inter-Organizational Information Systems Based on Organizational Identity: Some Factors of Partnership for the Goals," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    18. Waris, Idrees & Hameed, Irfan, 2019. "Using Extended Model of Theory of Planned Behavior to Predict Purchase Intention of Energy Efficient Home Appliances in Pakistan," MPRA Paper 109612, University Library of Munich, Germany.
    19. Chih-Ming Tsai & Wen-Yang Kao & Wei-Chi Liu, 2025. "Navigating Sustainable Mobility in Taiwan: Exploring the Brand-Specific Effects of Perceived Green Attributes on the Green Purchase Intention for Battery Electric Vehicles," Sustainability, MDPI, vol. 17(3), pages 1-22, January.
    20. Wei Guan & Wenhong Ding & Bobo Zhang & Jerome Verny & Rubin Hao, 2023. "Do supply chain related factors enhance the prediction accuracy of blockchain adoption? A machine learning approach," Post-Print hal-04063438, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:1649-1667. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.