Role of Technology on Performance of state Corporations in Kenya


Allan Mugambi Michael

Jomo Kenyatta University

Nairobi, Kenya


This paper looks at role of organization strategies on performance of commercial public organizations in Kenya. The paper objectives were to establish the role of technology on performance of state corporations in Kenya. The targeted was 202 state corporations; top one top management was targeted in each corporations head office out of which 196 valid questionnaires were obtained. The main study tools used were questionnaires and interviews. The study revealed, 7% can of the variations in performance of state corporations can be explained by the technology implementation. Also in general for every 1 unit change in performance of state corporations can be accounted β=.26 units of technology. The study recommends that there is need for state corporations to; management should encourage organization innovation and creativity as well as encourage implementation of new ideas and not following the rigid rules. The corporation needs to invest more on technology, create room for experimentation and risk taking and also reward those who come up with novel ideas. This will encourage the employees to develop new products and services to enable the organization have a competitive edge in the market. The findings will inform the stakeholders on how to improve the entrepreneurship in state corporations.

Key Words: Intrapreneur, Intrapreneurial behavior, Technology, Innovation, Entrepreneurship, Creativity, State Corporations

Background of Study

Bowen (2009) argues that, today’s consumers require on-demand and immediate access to information at their own convenience and are therefore turning to various types of social media to conduct their information searches that inform their purchasing decisions. European Countries, Asia and United States of America have been using social media as their major marketing tool for their businesses which accounts for 60% of advertising. Schubert &Leimstoll (2007) conducted a quantitative study regarding the co-relationship between social media usage and Small and medium enterprises objectives and the result was positive and thus technology is very crucial for every organization.

New technologies have great impact in an organization by contributing towards changing social environment, facilitating knowledge sharing and developing new ideas (Kling, Rosenbaum, and Sawyer, 2005). Social media is a good example of new technology making impact on today’s organizations. Due to the changing world of information technology, studies show that consumers are turning away from the traditional sources of advertising such as radio, television, magazines, and newspapers and are opting to use social media platforms where they have considerable control over their media consumption (Neff, 2012).

Kenya as at end of 2011 had 10.49 million internet users and the figure had increased to 13.25 million users as at 31st of March 2012 (International World Statistics, 2012). The gradual increase in internet users in the country is further collaborated by Communications Commission of Kenya (2012) which states that the figure rose by 95.6 per cent in the last quarter ending March 2012. This observation is attributed to reduced internet charges and increased mobile phone subscriptions in the country. Presently the Communications Commission of Kenya (CCK) in their 2013 Sector Quarterly Report for 2012/2013 estimated the total number of internet users in Kenya as at December 31st 2012 to be 16.2 million users. The figure rose to 19.1 million users with an internet penetration of 47.1 per cent as at end of the year 2013 (CCK, 2013). Communications Commission of Kenya (2013) puts internet users in Kenya at over 19 million.

Although discussed in a number of different settings, there are contexts in which the issue of intrapreneurship has not been addressed exhaustively. One of these contexts is in the state corporations in Kenya. State Corporations in Kenya have been experiencing a myriad of problems, including corruption, nepotism, and mismanagement (Njiru, 2008). In fact, from the Public Investment Committee reports, out of 130 reports examined by the Auditor General – Corporations, only 23 managed a clean bill of health (RoK, 2007). The general story is one of loss, fraud, theft and gross mismanagement. For example, a World Bank (2004) article stated that a key area for corruption-busting reform is the parastatal sector. When compared to similar economies, Kenya has had an over-abundance of state corporations many of which are a drain on public resources; more to the point, they have been the locus of corruption that thrives in public monopolies, especially when coupled with lax oversight, management and fiduciary control procedures. This is why this paper sought to find out if technology use is one of the reasons that corporations are not performing well.


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About the Author

Allan Mugambi Michael

Jomo Kenyatta University

Nairobi, Kenya




Allan Mugambi Michael is an assistant lecturer at Jomo Kenyatta University of Agriculture and technology in Kenya; he was born in Nanyuki, a small town at the slopes of Mt Kenya.

Allan is a PhD student at the same University and teaches Project Management and Entrepreneurship courses. He has been involved in various projects and consultancies at the University and within east African countries.

He has great research interest in the areas of Entrepreneurship, Technology and Project Management.

He can be contacted at [email protected] or [email protected]