Magdalene Otengo., Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi Kenya

Prof. Elegwa Mukulu. Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi Kenya

Prof. Christopher Kanali. Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi Kenya

CITATION: O. Magdalene, M. Elegwa & K. Christophe. November (2015), Influence of new technology adoption on the use of business advisory services in micro and small enterprises in Kenya: International journal of Economics & Finance (IJEF), volume 1 (4), 174 -189. ISSN 2105 6008.

Abstract

Technology adoption is acquisition of new technology that leads to effective and efficient methods of execution of organisation business functions. Adapting to changes in technology is a challenge facing many MSEs in Kenya. Many MSEs are unfamiliar with new technologies and on sourcing for external advice. The objective of the study was to determine the influence of new technology adoption on the use of business advisory services in micro and small enterprises in Kenya. The study adopted a descriptive survey research design and the target population was 58 registered micro and small manufacturing enterprises in Kenya, industrial area of Nairobi County. A census approach was used as a sample size of the population targeted. Purposive sampling method was used by the researcher to purposely reach the target group of micro and small enterprises owners. The respondents were the chief executive officers of the micro and small enterprises within the sample frame. Questionnaires were used as the main data collection instruments and the data collected was analyzed using measures of central tendency, dispersion and inferential statistics. Statistical software for social sciences (SPSS) was used as statistical tool for data analysis. Multiple regression models were used to establish the influence that the independent variables under study had on the dependent variable. Data was presented by frequency tables, pie charts and bar graphs. The study found that the extent of adoption of technology has a positive relationship with the use of business advisory services. The study thus concluded that the use of business advisory services is influenced by the level of new technology adoption in many MSEs in Kenya The owners and managers of microenterprises in Kenya should seek business advisory services on how to adopt new technology in their operations. Microenterprises should adopt new technology in development of new products, new services, marketing methods and production processes. Microenterprises should seek research collaboration with research institutions in order to improve on new technology adoption.

Key Words: New Technology Adoption, Business Advisory services.

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