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Abstract:
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Information technology has become a major driver for firm performance in the 21st century. Many firms however,
have lagged behind in the adoption of IT which a major drawback given the nature of global competition. The
objective of the study is to determine the effects of the adoption of Information Technology on organisational
performance which is a survey of firms listed in the Nairobi Securities Exchange. Cross sectional research design
was used in the study. The study targeted the chief information technology officers, information technology
managers, information system managers and managers involved in policy making decisions on computing
systems in all the companies listed in the Nairobi securities exchange. Both open ended and closed
questionnaires instrument was used to gather the data. The study found out that competitive advantage, cutting
costs, customer service and convenience, enhancing security, and financial management are the attributes that
are associated with adoption of information technology and this improves the performance of the firms listed in
the NSE. The study concludes that IT adoption has an effect on performance of firms listed at NSE, in addition
environmental, strategic and managerial factors have an effect of IT adoption on the performance of
organisations. The study recommends that firms should invest in IT capabilities and IT resources in order to spur
performance. |