Information Communication Technology (ICT) Adoption in UPAREZ Business Plc.
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Date
2016-06
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Addis Ababa University
Abstract
Information Communication Technology has become a significant expression of human
activity that has contributed and still contributes much to countries’ economies, social
welfare, and cultural heritage.
Small and medium enterprises (SMEs) competitiveness is basically affected by political,
economic, social, technological, legal and environmental factors. Information
Communication Technology (ICT) as part of technologies, it is one of the contemporary
factor affecting different areas of business organizations towards their competitiveness.
UPAREZ Business PLC is a SME. It has invested a lot on ICT to maintain its
competitiveness. However, Some SBU and department don’t know the potential factors
affecting ICT adoption and have not used any formal ICT adoption model. ICT use
(utilization) varied among SBUs and departments.
Thus, the objective of this research is to identify factors affecting ICT adoption towards
the competitiveness SMEs in the case of UPAREZ and develop a custom made model
for the company with particular emphasis on influence of ICT on competitiveness.
In order to achieve the above objective interview, questioner and document observation
were used as an instrument for data collection, and mixed research methodology were
implemented for data analysis.
Contrary to the common understanding of SMEs, UPAREZ has invested a lot in ICT.
Factors top management/owner support on ICT, centralized business management,
owners/manager’s ICT awareness, improved market performance, ease of use, speed up
business processes, size (number of sales outlet or customer), increased efficiency and
effectiveness, government’s regulation and law, improved and quality service delivery,
quality of IS systems and capabilities, link internal and external business processes,
reduced business costs and supplier collaboration were the most impotent enabling
factors affecting the ICT adoption.
The barriers to adopt the ICT were of inadequate ICT strategy, lack of government
incentive, lack of perceived economic or other benefits to the unit, reluctance of personnel
to use ICT, lack of localization-Amharic user interface, lack of training& consulting, new
versions of existing software introduced too often (support fee) and expensive
hardware/software, which creates inconsistent ICT adoption in strategic business units
(SBUs) and departments on UPAREZ.
The company has to minimizing the resistant barriers and exploit the enabling factors of
ICT adoption to reinforce its competitiveness through ICT.
The overall factors, barriers and perceptions affecting ICT adoption were identified and a
custom made ICT adoption model for the company has been developed. The company
and CT suppliers could able use the model by considering their existing contexts.
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Keywords
Comminication Technology, (Ict)