Technology context, leader personality and firm performance among state corporations in Kenya

Abstract

The performance of state corporations is indicated by such factors as their contributions to social welfare, job creation, general economic empowerment and improvement of lives of the poor. However, despite the interest in the sector and the subsidies that have flowed into some of the mission-oriented state corporations, it seems that most state corporations struggle with the challenge of remaining viable over the long-term. Some of this challenge is on how to manage customers and provide quality services. In addition, there are a number of challenges, which include the connectivity, and the ability of a large population to utilize these services and the capacity of the government departments to meet the demand and provide quality, timely services. Thus, the main aim of the study was to determine effect of technology context, leader personality on firm performance among state corporations in Kenya. The study specifically determined effect of technology relative advantage on firm performance, effect of technology compatibility on firm performance, effect of technology complexity on firm performance and effect of technology trialability on firm performance. Further, to determine the moderating effect of leader personality on the relationship between technology context (relative advantage compatibility, complexity and trialability) and firm performance among state corporations. The study was informed by stakeholder theory, upper-echelon theory, trait theory and diffusion-innovation theory for firm performance. This study used a positivism research philosophy. The research study employed explanatory research designs. The target respondents included top management from 187 state corporations. Simple random sampling was used to select 65 state corporations. Primary data was collected through questionnaires using a nominal scale. Cronbach alpha and factor analysis was used to test reliability and validity of research instrument, respectively. Descriptive and inferential statistical methods of Pearson correlation and Hierarchical regression models were used to analyze the data obtained and to test the hypotheses with the aid of SPSS version 23. The study indicated that technology relative advantage (β = 0.339, p<0.05), technology compatibility (β = 0.167, p<0.05) and technology complexity (β = 0.392, p<0.05), are key to enhancing firm performance. However, technology trialability had no influence on firm performance (β = -0.065, p>0.05). leadership personality; openness to experience (β = 0.47, p<0.05), neuroticism (β = - 0.09, p<0.05) and extraversion (β = 0.27, p<0.05) significantly influenced firm performance. Further, leader openness to experience leader openness to experience moderates the relationship between technology relative advantage and firm performance (β =.68, ρ< .05, R 2 Δ =042), technology complexity and firm performance (β = 0.58 , ρ< .05, R 2 Δ .023) technology trialability and firm performance (β =.32, ρ< .05, R 2 Δ = .024). leader neuroticism significantly moderates the relationship between technology relative advantage and firm performance (β = -0.22, ρ< .05, R 2 Δ = .012), technology compatibility and firm performance (β = 1.45, ρ< .05 , R 2 Δ= .017) , technology complexity and firm performance (β = 0.60 , ρ< .05, R 2 Δ =.034). leader extraversion significantly moderates the relationship between technology trialability and firm performance (β = 0.68, p<0.05, R 2 Δ =.044). The study recommended that state corporations adopt technology that holds prominence over previous technologies and enhance overall employee productivity and firm performance. Besides, state corporations should ensure any technology adopted is compatible with the existing IT infrastructure. Finally, training should be enhanced for better utilization of online services.