Contribution of Information Technology Adapted to Financial Distress Facing Local Authorities in Kenya.

Abstract

Purpose: The purpose of this study was to establish the contribution of Information Technology adapted to financial distress facing Local Authorities in Kenya.Methodology: A descriptive research design was used to conduct the study. The study population comprised of the 175 Local Authorities in Kenya. A sample of 20 Local Authorities was selected using a stratified random sampling technique. A questionnaire was used to collect data from both the Local Authorities officers and customers of Local Authorities. The data collected was analyzed using descriptive and inferential statistics. Qualitative responses were analyzed using content analysis. Results: Results indicated that Information Technology was inadequate in Local Authorities. In addition, the Management Information System was not enhancing the growth of Local Authorities. The results further indicated that Information Technology was a significant determinant of financial distress in Local Authorities.Unique contribution to theory, practice and policy: It was recommended that ICT skills for Local Authority staff should be enhanced through training. The Local Authorities should invest in more computers and ICT software as doing so would improve the financial fortunes of such local authorities. It was further recommended that all Local Authorities should prioritize the implementation of LAIFOMS.

Pengaruh Kepemilikan Manajerial terhadap Financial Distress dengan Teknologi Informasi sebagai Variabel Moderasi

“…Pada penelitian Ntoiti et al (2017) menunjukkan hasil bahwa teknologi informasi merupakan penentu signifikan terhadap kesulitan keuangan. Dimana, adanya teknologi informasi yang canggih membutuhkan biaya untuk berinvetasi di dalamnya guna menunjang tingkat efisiensi kegiatan operasional perusahaan.…”

“…Hasil ini tidak sejalan dengan penelitian dari Chen et al (2011) juga Bertschek et al (2019) dengan hasil bahwa perusahaan dengan teknologi informasi yang tinggi akan memiliki keunggulan kompetitif dalam menghasilkan keuntungan perusahaan sehingga bisa terhindar dari kemungkinan krisis dan memperkecil adanya financial distress. Sedangkan, penelitian Ntoiti et al (2017) menyatakan bahwa teknologi informasi menjadi penentu terjadinya kesulitan keuangan.…”