Does Adoption of Information Technology Improve Firm Performance? A Survey of Firms Listed in the Nairobi Securities Exchange

Abstract

Information technology has become a major driver for firm performance in the 21^st century. Many firms however, have lagged behind in the adoption of IT which a major drawback given the nature of global competition. The objective of the study is to determine the effects of the adoption of Information Technology on organisational performance which is a survey of firms listed in the Nairobi Securities Exchange. Cross sectional research design was used in the study. The study targeted the chief information technology officers, information technology managers, information system managers and managers involved in policy making decisions on computing systems in all the companies listed in the Nairobi securities exchange. Both open ended and closed questionnaires instrument was used to gather the data. The study found out that competitive advantage, cutting costs, customer service and convenience, enhancing security, and financial management are the attributes that are associated with adoption of information technology and this improves the performance of the firms listed in the NSE. The study concludes that IT adoption has an effect on performance of firms listed at NSE, in addition environmental, strategic and managerial factors have an effect of IT adoption on the performance of organisations. The study recommends that firms should invest in IT capabilities and IT resources in order to spur performance.

Keywords: Information technology, Security exchange.