Technology Adoption, Employee Attitudes, and the Performance of Small and Medium enterprises in Kampala district

Abstract

This research study sought to examine the relationship between technology adoption, employee attitudes, and performance in SMEs in Kampala District. The study adopted a cross-sectional survey design using quantitative approaches. A sample of 381 SMEs which was determined from the population using the (Krejcie & Morgan, 1970) table of sample size determination was chosen from a population of 47,000 small and medium enterprises operating in Kampala District. Data were collected using a combination of an online structured questionnaire (Google form), and a self-administered questionnaire physically delivered by the researcher at different SMEs. A response rate of 71 percent was obtained from the study. Analysis was done using SPSS computer software. Pearson’s correlation statistics indicated positive and significant relationships between technology adoption and SME performance; employee attitudes and SME Performance; plus technology adoption and employee attitudes. Technology Adoption was found to be a stronger predictor of SME performance compared to employee attitudes. Since the correlation findings indicate a strong relationship between Technology Adoption and SME Performance, the researcher recommends that SMEs effectively ensure a higher level of adoption of information and communication technologies in their operations as a way of encouraging better employee productivity and better business performance. The researcher further recommends that SMEs design policies that nurture positive employee attitudes to ensure better business performance. Keywords: Technology adoption, Employee attitudes, SME performance