Strategic Information Technology and Performance of Telecommunication Firms in Kenya

Many Information Technology (IT) firms in Kenya face the challenges of improving the competitiveness, quantity, quality and reliability of data and voice services. Strategic IT is viewed as a key factor in ensuring these challenges are overcome. However, improving firm competitiveness is not always a guarantee to improving firm performance. It is not elaborate whether strategic IT affects firm performance and if it does affect then what the consequent effects can be. The general objective of the research was to determine the effect of strategic IT on the performance of telecommunication firms in Kenya while the specific study objectives included; to establish the effect of strategic IT penetration on performance of Telecommunication firms in Kenya, to investigate the effect of strategic IT access costs on performance of Telecommunication firms in Kenya and to examine how staff strategic IT skills affect performance of Telecommunication firms in Kenya. Task-technology fit theory, efficient structure theory and the resourcebased theory were used to guide the study. Descriptive research design was used with a total population of 144 respondents comprising of managers, supervisors and team leaders from the three tier 1 telecommunication firms. Based on stratified sampling technique, the researcher selected a sample size of 44 respondents which is 30% of the total population size. The proposed study employed both secondary and primary data with questionnaires being used to collect primary data. The researcher employed two groups of experts from the ministry of Information and Communication to assess content validity. Reliability was assessed using Cronbach alpha coefficient. Data was analyzed by the regression analysis model and through the aid of SPSS while qualitative data was analyzed through Content analysis through the development of thematic frameworks for each of the open-ended questions. Presentation of analyzed data was done through statistical frequency tables and charts. Based on the study results where all the F statistic as well as the respective t statistic from the study model were significant in their respective p values, the study rejected all the null hypotheses and concluded that strategic IT penetration; strategic IT access costs and staff strategic IT skills all had a positive significant effect on performance of Telecommunication firms. the study stands to benefit the industry players through insightful competitive advantage driving strategies as well as helping scholars by partly anchoring the study on efficient structure theory. The study therefore recommends that Telecommunication firms need to come up with quality innovation capabilities necessary to drive market Penetration process, it is important for Telecommunication firms to ensure that the quality of infrastructure laid to oversee the realization of the projected benefits is firm enough (economically viable) to support the focused benefits and that firms should continually update their personnel with ICT skills through training and especially on any update made on mode operations. The study was limited to its scope but opens window for further research especially on dynamic strategies adopted by ICT firms in response to market turbulence.