Owner-Manager Perceived Relationship Between ICT Adoption and SME Performance in Busiro West Wakiso District, Uganda

Abstract

This study explored the relationship between ICT adoption and SME performance from the perspective of owner-managers in Busiro West in Wakiso District. More specifically, (i) to assess the relationship between ICT adoption and SMEs performance in Busiro West Wakiso District, (ii)to identify the current challenges on ICT adoption by SMEs in Wakiso, and (iii) to analyse the level of adoption of ICT in SMEs. With the respondent of 140, the study adopted a mix method and cross-sectional survey design.  The findings revealed: (i) There is a significant positive relationship between ICT adoption and SME performance (r = 0.913; p value = 0.000). (ii)Some of the challenges that impeded ICT adoption included high costs, limited skills, lack of infrastructure, and security concerns. The study also confirmed that SME owner-managers know the benefits of ICT adoption, but several have failed to consistently adopt and use it due to the several challenges associated with adopting ICT. (iii)The study also observed a low level of ICT adoption among the SMEs. Conclusions were drawn and recommendations made with regards to government intervention, service providers imitative, owner-manager role and general public sensitisations. The study contributed to body of knowledge that confirms the importance of ICT adoption to business performance and success.

Keywords: ICT adoption, SME Performance, Owner-manager, Uganda

DOI: 10.7176/EJBM/14-24-06

Publication date: December 31^st 2022