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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. |
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