Effects of adoption and usage of internet technologies on the operations of micro small and medium enterprises in Uganda a case study of Rubaga division

Abstract

This study aims to improve our understanding of the factors that affect the adoption and usage of Information and Communication Technology (ICT) systems and applications by Small and Medium-sized Enterprises (SMEs) in Uganda. The study examines how five factors, specifically perceived usefulness, perceived ease of use, cost of deploying ICT, owner/top management support, and employee ICT knowledge and skills, determine the adoption and usage of ICT systems and applications by SMEs in Kampala. The researcher employed descriptive survey to ensure the construction and understanding of the research problem. The study utilized questionnaires to obtain relevant data from study participants. The study investigated 250 participants and applied Random, Convenience, and Purposive sampling methods to determine the data collection sample size. The study showed that the perceived usefulness of Information and Communications Technology (ICT) by companies had a positive impact on its acceptance and usage by small and medium-sized enterprises (SMEs). Small and medium-sized enterprises (SMEs) had a higher tendency to implement ICT solutions when they were able to measure their advantages to their overall profitability, enhance productivity and reduce operational costs. The Perceived ease of use of technology was found to have a positive influence on its adoption and use by SMEs based in Kampala. The study also revealed Top Management Support of ICT has a positive effect on its adoption and use by SMEs. The study found no significant effect of employee ICT knowledge and skills on the adoption and use of ICT by SMEs. This suggests that Kenyan SMEs do not consider the significance of their employees' ICT knowledge and skills when adopting ICT system and applications. The study concludes that the perceived usefulness of ICT systems and applications influences the adoption of ICT by SMEs. The study established that the perceived ease of use of ICT systems and applications enhances the adoption process by SMEs. Additionally, the study found that the perceived cost of deploying ICT systems and applications, as well as owner and management support, influence the behavior of SMEs with regards to the adoption of ICT systems and applications. The study concluded that there is no significant relationship between employee ICT knowledge and skills of ICT systems and applications and the adoption of ICT by SMEs. The study recommends that the management of companies selling ICT systems and applications clearly demonstrate the impact of such systems on productivity, profitability, business processes, and communication. Additionally, companies should clearly demonstrate the reliability, accessibility, availability, and user-friendliness of the systems. The study suggests that SME management should support ICT initiatives within their companies to promote the adoption of ICT. Additionally, SME managers should consider their employees' knowledge and skills in ICT when making decisions about adopting ICT systems and applications.