The Impact of Information and Communication Technology Adoption and Diffusion on Technology Entrepreneurship in Developing Countries: The Case of Kenya

Abstract

ICT-based enterprises (ICT-BEs) are businesses that produce ICT products, provide ICT processing technologies, or offer ICT support services. Most ICT-BEs grow in particular niche fields of ICT use by offering services that are well tailored to meet the needs of a specific target market. This however is usually short lived, as alternative technologies are developed each day and availed globally within a few months, while the rate of adoption and diffusion of technology is dependent on other factors other than the ICT itself. In most cases technology diffusion is rather slow and uneven at first, but accelerates rapidly once a critical mass of individuals has adopted the technology. This raises the question of how ICT-BEs can cushion themselves against sudden and unpredictable ICT trends, which may lead to existing customers abandoning a technology for any new alternative technology. The study examines the impact of rapid ICT trends on ICT entrepreneurship in the liberalized and globalized Kenyan ICT market. The study is based on qualitative data, collected through four descriptive case studies selected from micro and small enterprises offering ICT solutions. Findings reveal that rapid changes in ICT trends and early adopters' switching behavior negatively affect the survival of an ICT-BE, while customer satisfaction and entrepreneurial creativity positively influence the survival and success of an ICT-BE. The study provides practitioners, budding ICT entrepreneurs, and policy-makers with essential lessons on how ICT trends affect the growth and survival of ICT-BEs and how to mitigate these negative effects and therefore remain in business.