The impact of adoption and use of mobile phone technology on the performance of micro and small enterprises in Kasangati town, Uganda

Abstract

Businesses all over the world are getting more and more interested and involved in strategic management with integration of the corporate strategy in functional decision- making hence the competitiveness, and profitability of the firm. The general objective of the study was to determine the impact of adoption and use of mobile phone technology on the performance of micro and small enterprises in Kasangati town, Uganda A cross sectional survey research design aimed at identifying MSE owners’ perception on the adoption and use of mobile phone technology was used. Stratified sampling was used to identify the MSEs and simple random sampling techniques used to select the respondents and questionnaires placed to collect the data. A questionnaire was used to collect data and a split-half method of estimating reliability used with the aim of assessing the reliability and validity of the research instrument through the expert advice of the supervisors and faculty. The study sample comprised one hundred (100) owners and managers of MSEs out of a population of Seven hundred and eighty-five (785). Once the data has been collected, quantitative data was analyzed using descriptive statistics such as mean, distributions in percentages and frequency counts. Qualitative data was recorded from field data, transcribed and reported in themes and sub themes. Multiple correlation analysis was employed to assess the relationship among the independent and dependent variables. The study showed among other findings, that there is an impact on adoption and use of mobile phone technology on the performance of micro and small enterprises and these included; better response to customers, improved communication with suppliers/customers, ability to store and retrieve customer data fast, Lower operational costs, need for training and guidance on some products, Data security issues and workers feeling stressed due to adoption of mobile phone technology The findings obtained from the study the following are recommended; the Government through the ministries of Trade and Commence and the Ministry of ICT and Communication should initiate and support training programmes to develop the capacity of small and medium entrepreneurs in mobile phone technology tools. and seminars or induction sessions should be created by stakeholders to allow MSE’s to evaluate new inventions.