EFFECT OF DIGITAL TECHNOLOGY UTILIZATION ON THE PERFORMANCE OF REFUGEE WOMEN-LED MSMEs IN KAKUMA REFUGEE CAMP, KENYA

Abstract

The contribution of Micro, Small, and Medium Enterprises (MSMEs) to economic development as well as the role of digital technology in MSME performance is underscored in many studies globally. Despite the potential of MSMEs in economic growth, many face myriad of challenges both internal and external to the firm that constrain their performance and ultimate survival. This is especially critical for refugee-owned enterprises. In light of the constraints utilization of digital technology has emerged as an important strategy to secure growth, performance, and survival of MSMEs. The overall objective of this study was to examine the effect of digital technology utilization on the performance of MSMEs in Kenya with specific focus on refugee women-led MSMEs in Kakuma Refugee Camp. The specific objectives included; determining the effect of utilizing mobile phone-based digital technologies; computer-based digital technologies; online media-based digital technologies; and the moderating effect of MSMEs the type of MSME on performance in Kakuma Refugee Camp. Underpinned by Theoretical frameworks including Resource Based View theory, Technology Acceptance Model theory, and Technology, Organization, and Environment Framework. The study adopted Analytical Cross-sectional Survey Design for primary data collection using questionnaires. The study targeted 401 women MSMEs in Kakuma Refugee camp in Kenya to conduct research, of which 196 were sampled. Cronbach alpha was adopted for reliability test. For validity a pilot study was taken as 1% of the sample population of each of the 4 sections of Kakuma refugee camp. Stratified simple random sampling was adopted. Descriptive Statistics was generated to give summaries and describe the sample characteristics, while inferential statistics comprised of regression and correlation analysis. The study found that mobile phone-based technology was a significant predictor of performance (r = 0.501, p-value =0.000 < 0.05). On the other hand, there was a positive and significant relationship between desktop computer-based technologies and performance with a Pearson correlation coefficient r = 0.581, p-value = 0.000< 0.05 which was significant at 0.05 level of significance. The results also confirmed that at 0.05 level of significance online based technologies was a significant predictor of performance (r = 0.426, p-value =0.000 < 0.05). Lastly, the results showed that at 0.05 level of significance, MSMEs characteristic was a significant predictor of performance (r = 0.700 p-value = 0.000 < 0.05). The study recommends that mobile phone based technology should be prioritized since it leads to increase in sales and profits of a firm through improved mobile phone transactions. Women businesses should practice computer-based technologies since it improves service delivery based on time management and leads to efficiency that results in better sales and profits. Women should practice online based technologies to ensure use of WhatsApp and other internet-based practices to improve customers’ awareness of products and increase customer reach for better sales. Women businesses should employ business characteristic such as appropriate business locations and choice of business to ensure increase in sales. I recommend similar research in other Camps such as Daadab refugee camp. In addition, digital based technologies are diverse, this study was limited to only three. A similar study should be explored basing on other digital based technologies or other moderating variables such as age of the firm, size of the firm can be applied in further studies.