Organizational factors and human resource information system in manufacturing firms in Nairobi County, Kenya

Abstract

Information Technology (IT) is a critical resource for today’s businesses. Due to increased emphasis on a knowledge-based economy, many organizations are realizing that their employees and information resources are critical to survival and success. Therefore, human resource information systems (HRIS) is increasingly becoming important in ensuring and aiding organizations manage their human capital effectively. Despite this realization, Kenyan firms still lag behind in adopting HRIS. The study was guided by technology-organization-environment (TOE) framework and diffusion innovation model (DOI). The study sought to establish organizational factors affecting the use of human resource information systems (HRIS) in the manufacturing sector in Kenya, and it was guided by the following specific objectives: To determine the effect of top management support on application of HRIS, To assess the effect of centralization on HRIS usage, To determine effect of organization culture on application of HRIS and to determine the effect of competitive Pressure on application of HRIS among manufacturing firms in Nairobi County, Kenya. Stratified sampling was used to obtain a sample size of 212 respondents from a target population of 478 manufacturing firms listed in the Kenya manufacturing association list (2014). Descriptive and inferential statistical analyses were used to analyze the quantitative data. Pearson’s correlation coefficient was used to determine the relationship between the independent variables and the dependent variables, while regression analysis was used to predict the relationship. Findings showed that top management support, (β1 = 0.15, p< 0.05), degree of centralization (β2= 0.22, p< 0.05), organization culture (β3 = 0.23, p< 0.05) and competitive pressure (β4 = 0.40, p< 0.05) had a positive and significant effect on the application of HRIS. The study concludes that competitive pressure, degree of centralization, organization culture and top management support are key drivers for application of HRIS. There is therefore need for organizations to have job specialization, formalization and standardization in the organization. Also, the organizations need to have an open and flexible corporate culture, supportive climate and flexible structures that enhance successful deployment of new technologies. Organizations should do what is right in terms of technology adoption despite of competition facing the organization