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EFFECT OF INFORMATION TECHNOLOGY INFRASTRUCTURE ON EFFECTIVE
IMPLEMENTATION OF ICT PROJECTS IN MANUFACTURING ENTERPRISES IN NAKURU
COUNTY, KENYA
1*
Taiku Martin Muhinja 2**
Samson Paul Nyanga’u
[email protected] [email protected]
1,2
Jomo Kenyatta University Of Agriculture And Technology, Kenya
Abstract: Adopting IT projects is one factor which increases the effectiveness and efficiency in an organization.
However, implementing information technology projects affects the organization to a great degree and be a
major change for an organization’s processes; for instance, it requires employees to change. Many companies
have found that implementing such changes is the most difficult part of information systems implementation.
In addition, information technology projects can affect individuals, groups, and a whole organization when
the project is introduced into that organization.
Methodology: The study used the descriptive research design. The target population for this study was
manufacturing enterprises in Nairobi County. Purposive sampling strategy was used to select the firms in the
manufacturing sector. The target population was 148 IT projects. Simple random sampling procedure was
used to derive a sample size of 104 IT project supervisors.
Findings: The study findings revealed that the effect of Information technology infrastructure affected effective
implementation of Information technology projects in manufacturing enterprises in Nakuru County, Kenya to
a moderate extent. The results of the study show that Information technology infrastructure and effective
implementation of Information technology projects in manufacturing enterprises in Nakuru County, Kenya had
a positive and significant relationship. This finding implies that an effective Information technology
infrastructure leads to improvement in effective implementation of Information technology projects in
manufacturing enterprises in Nakuru County, Kenya.
Keywords: IT Projects, Information Technology Infrastructure, Project Management Practices
1. Information Communication Technology Projects
There is no clear and globally accepted definition of what entails effective implementation of ICT projects.
However, several scholars and researchers have attempted to define success of IT projects. He and King (2008)
term IT project success as the way the system works in general in line with how efficient and useful it is.
Thomas and Fernandez (2008) suggest that success is achieved when an information system is perceived to be
successful by stakeholders.
Globally the swift development of Information Technology (IT) in industries today has both opportunities and
problems. Deeds added that IT presents many opportunities in that companies have used it to help them gain a
competitive edge. It also presents challenges in the management of IT has at the same time a major problem to
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several companies. In effect, cost-effective deployment and usage of IT resources has become a strategic
success factor for business firms (Breakfield & Burkley, 2002).
Businesses today face a stark reality of competition and are required to anticipate, respond and react to the
growing demands of the marketplace in order to remain relevant (Bryman, 2007). In the fiercely competitive
environment, effective business strategy centers on aggressive and efficient use of Information Communication
Technology (ICT). Both governments and organizations are investing heavily and relying highly on ICT to
improve productivity through streamlining of business process in order to enhance efficiency and effectiveness.
Many researchers have evaluated benefits of investing in ICT Projects (Yang & Seddon, 2004), and all agree
that information systems are designed to help manage organizational resources in an integrated manner. The
level of integration that is promoted across functions in an enterprise closely relates to the primary benefits
that are expected as a result of their implementation. The issue of ICT failure can be analyzed by assuming
that learning from IS failures will provide us with important lessons for formulating successful strategies for
the planning, development, implementation and management of information systems. While discussing
dimensions of ICT failure, Beynon-Davies (2002) considers both the horizontal and vertical dimensions of the
informatics model. The horizontal dimension is expressed in terms of the difference between development
failure and use failure. The vertical dimension is expressed in terms of failure at the levels of ICT systems, IS
projects, or organization, or at the level of the external environment.
The Six types of IS failures are identified as follows: Technical failure, Project failure, Organizational failure,
Environmental failure, Developmental failure; and Use failure. Beynon-Davies supports the argument with
and several case studies and quotes other models for IS failure put forward by Lyytinen and Hirschheim (1987).
ICT success or failure in developing countries can be categorized into three types depending on the degree of
success (Heeks, 2002). First, is the total failure of an initiative never implemented or in which a new system
was implemented but immediately abandoned. Secondly, it is a partial failure of an initiative, in which major
goals are unattained or in which there are significant undesirable outcomes. Associated with partial failure is
the sustainability failure where an initiative first succeeds but is then abandoned after a year or so. The last is
success of an initiative where most stakeholders attain their major goals and do not experience undesirable
outcomes.
In Africa, most society’s todays are being transformed by continuously evolving technologies that are changing
the way we do things at the most fundamental levels (Hilsenrath & Paletta, 2008). At a macro level, IT is one
of the driving forces behind globalization of world economies and at an enterprise level, it is playing a crucial
role in re-engineering and restructuring of business processes in response to increased competition (Claessens
et al., 2010). On an individual level, every aspect of our daily lives is subject to technological innovations. We
have become dependent on the flexibility, access, and services that they provide us. Computers, fax machines,
networks, cable television, fiber optics, and ATMs have all played a pivotal role in the way we communicate,
work, play, and do business (Shachmurove, 2011).
Several recent studies related to information communication technology (ICT) implementation frameworks
have identified key ICT implementation drivers and barriers which are useful in providing a strategic view of
its success. These studies explored barriers to ICT use and adoption. Common highlighted barriers include low
ICT literacy and investment levels (Love, et al., 2001).
One recent study of 134 architectural, engineering and construction professionals identified IT implementation
barriers and coping strategies at the industry, organization, and project level (Stewart, et al., 2004). Review of
the literature however, reveals that few empirical studies explain ICT implementation constraints from an
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innovation diffusion perspective at the organization, workgroup and individual level (Peansupap &Walker,
2005). One recently completed study (Peansupap, 2004) differs from, previous IT innovation research in two
important ways. First, by organization-wide ICT diffusion such as groupware or intranet applications is
assumed to differ from stand-alone ICT innovation such as CAD systems or non- integrated project planning
and scheduling. This is because organization-wide ICT innovation requires a commitment from a greater
number of users than does IT innovation focused upon individual stand-alone ICT.
Nakuru County is a county in Kenya. The capital and largest town is Nakuru, although Naivasha is another
major significant urban centre. With a population of 1,603,325 (2009 census), it is the fourth largest county in
Kenya after Nairobi, Kakamega and Kiambu in that order in terms of population. Nakuru County has an area
of 2,325.8 km². Until August 21st 2010, it formed part of Rift Valley Province.
Nakuru County has a high youthful population where 15-34 year olds constitute 49% of the total population.
Labour migration from the rural areas in search for jobs is the main reason why the county has a very high
proportion of the working age population of those aged between 15-64 years old who form 68% of the total
population. Gichoya (2005) studied on factors affecting the successful implementation of ICT Projects in
Government in Kenya found evidence that there was a higher rate of failure than success in implementation of
IT projects. Chege (2014) study on factors affecting the success of information technology projects within the
Kenyan banking industry found that none of the projects completed during the survey period had delivered on
their intended business benefits. This was supported by Wamoto (2015) study on E-government
Implementation in Kenya, an evaluation of Factors hindering or promoting e-government successful
implementation which revealed that many e-government initiatives also failed to achieve their objectives in
developing countries.
2. Statement of the Problem
Studies (Cooke-Davies, 2012; Cleland & Gareis 2014) have agreed that PM practices do ensure effective and
successful project management. Matende and Ogao (2015) argued that ICT projects failures may largely be
classified as human/organizational, technical, and economic. While each of these is important, there appears
to be a growing consensus among researchers those human factors, more than technical or economic, are
critical to the success of IT projects. Nasir and Sahibuddin (2011) show that many of ICT projects have failed
in the combination of budget and/or schedule overruns and/or for not meeting stakeholders’ requirements. Marr
(2016) reports that 25 % of information technology projects fail outright; 20 to 25 % don’t show any return on
investment; and as much as 50 % need massive reworking by the time they’re finished. The importance of
effective implementation of ICT projects was based on the use and application of ICT in day to day operations
of an enterprise. However, there is less evidence to show the determinants to effective implementation of ICT
projects in manufacturing enterprises in Nakuru County, a research gap that the study intends to fill by
examining the influence of top management commitment, staff competence, information technology
infrastructure and budgetary allocation on effective implementation of ICT projects. Basing on the above this
study assisted in filling in the gaps.
3. Specific objectives
The aim of the study was to establish determinants of effective implementation of ICT projects with a specific
objective to determine the effect of information technology infrastructure on effective implementation of ICT
projects in manufacturing enterprises in Nakuru County, Kenya.
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4. Research Methodology
This research was grounded on the Management by objectives, stakeholder, Technology Acceptance Model,
and resource based theory. The study used the descriptive research design. The target population for this study
was manufacturing enterprises in Nairobi County. Purposive sampling strategy was used to select the firms in
the manufacturing sector. The target population was 148 IT projects. Simple random sampling procedure was
used to derive a sample size of 104 IT project supervisors. The research instruments were validated by use of
a pilot study, which was assessed by the project managers. Data collected was analyzed by use of Statistical
Package for Social Sciences (SPSS).
5. Research Findings and Presentations
Pilot Test Results
Cronbach (1951) recommends that a Cronbach’s alpha α, of 0.7 and above to establish reliability. The study
established the Cronbach’s alpha value for the case. The values were gauged against a cutoff point of 0.7 which
is acceptable as opined by (Cooper & Schindler, 2008). The results are tabulated in the table 1 below.
Table 1: Reliability Analysis
Variable Cronbach's Alpha No of Items
IT Infrastructure 0.725 4
Effective implementation of ICT Projects 0.700 3
Effect of security threats on effective implementation of projects
The first question under Information Technology Infrastructure was to establish the effect of security threats,
on effective implementation of information technology projects. From the information gathered in this study,
out of the 92 respondents, 14.1% they were effective to a very great extent, 15.2% indicated to a great extent,
40.2% said to a moderate extent, 16.3% indicated to a less extent and 14.1% no extent. The results are shown
in the table 2 below.
Table 2: Effect of security threats on effective implementation of projects
Frequency Percentage
Very great extent 13 14.1
Great extent 14 15.2
Moderate extent 37 40.2
Less extent 15 16.3
No extent 13 14.1
Total 92 100.0
Effective computer technologies
However, to be able to find out how computer technologies affected effective implementation of information
technology projects, it was important to identify how effective computer technologies are in enhancing
Information Technology Infrastructure. The respondents were asked to indicate how effective they are; 20.7%
indicated they were very effective, 28.3% which was the highest response stated they were effective, 21.7%
said the computer technologies are moderately effective, 15.2% said they were less effective and 14.1% stated
they were not effective. The results are shown in the table 3 next page.
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Table 3: Effective referrals
Frequency Valid Percentage
Very effective 19 20.7
Effective 26 28.3
Moderately effective 20 21.7
Less effective 14 15.2
Not effective 13 14.1
Total 92 100.0
Monitoring the progress of interconnectivity of the information technology framework
In an attempt to respond to the questions on often Information Technology Infrastructure was done, it was
important to identify how often monitoring was conducted. From the findings of the study, 17.4% said that
they are conducted weekly, 20.7% were of the opinion they are conducted monthly, 31.5% stated that they
conducted quarterly and 12.0 % said they are conducted semiannually while 18.5% are conducted annually.
The results as presented in the table below depict that monitoring the progress of interconnectivity was
conducted quarterly which is appropriate.
Table 4: Monitoring the progress of interconnectivity of the information technology framework
Frequency Valid Percentage
Weekly 16 17.4
Monthly 19 20.7
Quarterly 29 31.5
Semi annually 11 12.0
Annually 17 18.5
Total 92 100.0
Correlations Analysis
According to (Pallat, 2010), correlation explores the relationship among variables. By so doing, they help in
assessing presence of multicollinearity, an assumption of regression model. A correlation matrix was used to
illustrate correlations between study variables. Correlation is a value running from -1 to 1. According to
(Farndale, Hope-Hailey & Kelliher, 2010) correlation values not close to the above outlined range indicates
that the factors are sufficiently different measures of different variables thus eliminating presence of
multicollinearity thereby utilizing the independent variables. Table 5 next page shows the correlation matrix.
The study established that there was a strong positive correlation between IT infrastructure and effective
implementation of ICT projects (r= 0.956, p=0.000).
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Table 5: Correlations
Effective
IT Implementation of ICT
Infrastructure projects
IT Infrastructure Pearson Correlation 1 .956**
Sig. (2-tailed) .000
N 92 92
Effective Implementation Pearson Correlation
.956** 1
of ICT projects
Sig. (2-tailed) .000
N 92 92
**.
Correlation is significant at the 0.01 level (2-tailed).
Regression Analysis for Information technology infrastructure
A simple linear regression was calculated to predict effective implementation of ICT projects based on IT
infrastructure. The results of the simple linear regression analysis suggested that budget allocation predicted
46.2% of the variance, R2= 0.462, (F (1, 90) = 77.384, p<.001) (β= 0.680, t (92) =6.457, p<.001). A significant
regression equation was found (F (1, 91) = 41.695, p<.001). Further, budget allocation significantly predicted
effective implementation of ICT projects (β= 0.563, t (92) =8.797, p<.001). Table 6 below indicates the model
summary for the regression between budget allocation and effective implementation of Information technology
projects.
Table 6: Regression Analysis for Information technology infrastructure
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .680 .462 .456 .26003
a. Predictors: (Constant), IT Infrastructure
ANOVA
One way between subjects ANOVA was run with IT infrastructure completed as the predictor variable and
effective implementation of ICT as the criterion variable. The results of the ANOVA indicated that there was
a statistically significant difference between top management support and effective implementation of ICT
projects (F (1, 90) = 77.384, p<.001).
ANOVAa
Model Sum of df Mean Square F Sig.
Squares
Regression 5.232 1 5.232 77.384 .000b
1 Residual 6.085 90 .068
Total 11.318 91
a. Dependent Variable: Effective Implementation of ICT projects
b. Predictors: (Constant), IT Infrastructure
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Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) .737 .214 3.443 .001
1 IT .719 .082 .680 8.797 .000
Infrastructure
a. Dependent Variable: Effective Implementation of ICT projects
6. Summary of Findings
The study findings revealed that the effect of Information technology infrastructure affected effective
implementation of Information technology projects in manufacturing enterprises in Nakuru County, Kenya to
a moderate extent. The results of the study show that Information technology infrastructure and effective
implementation of Information technology projects in manufacturing enterprises in Nakuru County, Kenya had
a positive and significant relationship. This finding implies that an effective Information technology
infrastructure leads to improvement in effective implementation of Information technology projects in
manufacturing enterprises in Nakuru County, Kenya.
The study established that there was a positive correlation between, Information technology infrastructure and
effective implementation projects. It can be concluded that there is a positive relationship between Information
technology infrastructure and the effective implementation of Information technology projects in
manufacturing enterprises in Nakuru County, Kenya. The study concludes that proper Information technology
infrastructure should be facilitated and enhanced to ensure effective implementation of projects.
This study recommends that Information technology infrastructure should be facilitated and integrated; the
project managers and project team should meet very frequently in order to effectively monitor and evaluate the
Information technology infrastructure in place. The project activities should be well monitored and evaluated
as they are critical to the effective implementation of Information technology projects.
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