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Role of Information and Communication Technology Solutions on the Growth of Small and Medium Enterprises: Case of Nairobi County

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  • Shadrack M. Mwangangi
  • Ombuki Charles
  • Gregory Odote

Abstract

The study set out to assess the role of E-commerce tools on the growth of Small and Medium Enterprises (SMEs), analyze how the use of Customer Relationship Management systems (CRM), Enterprise Resource Planning (ERP) systems, and use social media technologies affects the growth of SMEs. Descriptive survey design was used; a sample of 60 SMEs was selected using quota sampling in Nairobi County. Primary data was collected using semi- structured questionnaires. Analysis was done using Statistical Package for Social Science (SPSS). Study findings indicated that e-commerce tools were highly adopted by SMEs with mobile payment systems being the highest adopted, online shopping and online catalogues for products and services. Adoption of e-commerce tools related to growth of SMEs. CRM systems were highly adopted by SMEs and had a moderate positive correlation their growth. Findings indicated that high growth SMEs was mostly associated with usage of social media. The study recommended that SMEs should consider wide flexible solutions of open source software solutions, scalable platforms to allow progressive upgrade to meet increasing use and cloud solutions. Research should be conducted to identify additional challenges that will enable SMEs operations to be efficient, cost-effective to ensure their growth and sustainability.

Suggested Citation

  • Shadrack M. Mwangangi & Ombuki Charles & Gregory Odote, 2014. "Role of Information and Communication Technology Solutions on the Growth of Small and Medium Enterprises: Case of Nairobi County," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(9), pages 385-401, September.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:9:p:385-401
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    References listed on IDEAS

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    1. David A. Harrison & Peter P. Mykytyn & Cynthia K. Riemenschneider, 1997. "Executive Decisions About Adoption of Information Technology in Small Business: Theory and Empirical Tests," Information Systems Research, INFORMS, vol. 8(2), pages 171-195, June.
    2. J. Yannis Bakos & Barrie R. Nault, 1997. "Ownership and Investment in Electronic Networks," Information Systems Research, INFORMS, vol. 8(4), pages 321-341, December.
    3. Davidsson, Per, 1991. "Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth," Journal of Business Venturing, Elsevier, vol. 6(6), pages 405-429, November.
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