effects of entrepreneurial context on performance of entertainment enterprises through adoption of technology in nakuru town, kenya

Abstract

Small and Medium Enterprises (SMEs) play a critical role in both developed and developing economies. They greatly contribute to the Gross Domestic Product (GDP) as well as being a major job creator. It is viewed that over 90% of businesses in mostv economies are categorized as SMEs, jurisdictional definitions notwithstanding. Information and Communication Technology (ICT) has been touted as the key driver leveraging knowledge-based economies and SMEs are not exceptional. This study focused on the effects of entrepreneurial environment on the entertainment enterprise performance through adoption of ICT owing to limited understanding on this phenomenon. This study was anchored on three theories viz., Diffusion of Innovation; Technological, Organizational and Environmental theory and Institutional theory. The study was guided by six research objectives namely to: examine the influence of the external enterprise environment on the performance of bars and night; assess the influence of the enterpriser characteristics on the performance of bars and night clubs; examine the influence of enterprise characteristics on the performance of bars and night clubs; evaluate the mediating role of ICT adoption in the relationship between the external enterprise environment and performance of bars and night clubs; evaluate the mediating role of ICT adoption in the relationship between the enterprise characteristics and performance of bars and night clubs; evaluate the mediating role of ICT adoption in the relationship between the enterpriser characteristics and performance of bars and night clubs. This study employed cross-sectional survey design. A quantitative approach was used in this study anchored on a post-positivist paradigm. The study was carried out in Nakuru town targeting bars and night club enterprises. Slovins’ formula was used to determine a sample size of 236 enterprises from a target population of 580 bars and night clubs. Probability sampling techniques namely; stratified, systematic and simple random samplings were used to select the sample. Primary data was sourced using two sets of questionnaires for the owner and/or managers and employees. Data was analyzed using descriptive and inferential statistics with the aid of SPSS version 22 and AMOS version 21 softwares. The findings of this study indicate that bars and night clubs had adopted low-end technology tools and applications, used for basic communication and administrative purposes. The enterprisers further consider government and private sector as key impediments to technology adoption. Further findings indicated that technology adoption fully mediates the relationship between enterpriser’s (β=.098, p=.001) and external (β=-.087, p=.008) contexts of entrepreneurial environment and enterprise performance. In addition, it had no mediating effect on the enterprise context (β=-.037, p=.222). This study concludes that enterprise environment had minimal influence on performance while the mediating effect of ICT adoption interrelationship between enterprise environment and performance was significant. The study recommends that stakeholders in the ICT industry undertakes needs assessment and provides requisite capacity development of entrepreneurs on ICT adoption and utilization. Longitudinal studies should be undertaken to enhance an understanding of the phenomenon.