THE ROLE OF INFORMATION TECHNOLOGY ON BUSINESS PERFORMANCE IN SELECTED BUSINESS ENTERPRISES IN MAKINDYE DIVISION KAMPALA UGANDA

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION iv

ACKOWLEDGEMENT

ABBREVIATIONS AND ACRONYMS vi

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

ABSTRACT

CHAPTER ONE 1

1.0 INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 The purpose of the study 4

1.3.1 Specific Objectives 4

1.4 Research Questions 4

1.5 Scope of the Study 5

1.5.1 Conceptual scope

1.5.2 Timescope

1.5.3 Geographical scope

1.6 Significance of the study

1.7 Conceptual framework 6

CHAPTER TWO 8

LITERATURE REVIEW 8

2.0 INTRODUCTION 8

2.1 Conceptual Definitions of Key Variables 8

2.2 Empirical Studies and Variable Relationships 9

2.3 Productivity Paradox Related Studies 11

2.4 Information Technology and Business Processes 13

2.5 The Role and Use of information technology in Businesses 13

2.6 Information Technology and Productivity - Productivity Paradox 14

2.7 Information Technology and Performance of Businesses 15

2.8 Theoretical Review

2.8.1 The Technology Acceptance Model 17

2.8.2 Model of the Businesses 18

2.9 Summary of Literature Review 18

CHAPTER THREE 20

METHODOLOGY 20

3.0 Introduction 20

3.1 Research design 20

3.2 Study population 20

3.3 Sampling design 21

3.3.1 Sample Size 21

3.4. Data Collection 21

3.4.1 Sources of data 22

3.4.2 Methods and instructions of data collection 22

3.5 Data processing and analysis 22

3.5.1 Editing 22

3.5.2 Coding 23

3.5.3 Data analysis 23

CHAPTE FOUR 24

PRESENTATION, INTERPRETATION AND DISCUSSIONS OF FINDINGS 24

4.0 Introduction 24

4.1 Results / Findings 24

4.1.1 The Role of Information Technology to Business Enterprises 28

4.1.2 The Level of Business Performance in Makindye Division 30

CHAPTER FIVE 32

5.0 SUMMARY, RECOMMENDATION AND CONCLUSIONS 32

5.1 Discussion of findings 32

5.1.1 Findings on the personal information of respondents 32

5.1.2 Findings on the role of information technology in makindye division 32

5.1.3 Findings on the Level of Business Performance in Makindye Division 33

5.2 Summary of Findings 34

5.3 Conclusion 34

5.4 Recommendations .35

5.5 Suggested Areas for Further Research 35

5.6 Limitation of the Study 36

REFERENCES 37

APPENDIX 1: QUESTIONNAIRE FOR EMPLOYEES AND MANAGERS 39

APPENDIX 3: BUDGET ESTIMATES 45

APPENDIX 2: TIME FRAME 46

ABSTRACT 

The purpose of the study is to establish the relationship between Information Technology and Business Performance. The research design was descriptive and cross sectional in nature. Explanatory research designs was used to establish the relationship between the variables. It included the employees and managers of selected business enterprises in Makindye division Kampala district Uganda. A sample size of 80 people was used using probability and non-probability sampling methods. Data was collected from both primary and secondary sources using questionnaires and was analyzed using frequency tables, percentage and graphs to test the relationship between Information Technology and Business Performance of business enterprises. The research shows that there is established IT system in business enterprises and it indicates a positive relationship between the level of implemented IT and Business Performance of business enterprises. These results indicate that IT alone cannot be used to explain the Business Performance of business enterprises but other variables like increase in working hours, reduction of interest rates may exhaustively explain the Business Performance. The study therefore recommends that business enterprises should / must use IT as a business during innovations internally and externally, addressing human resource demand to give training budget a priority as one of the ways to encourage creativity and innovation among the staff. Business enterprises should consider outsourcing IT services in order to minimize on the costs incurred in training staff on the new IT system brought in place.