The Strategic Role of Information Technology on Organization Financial Performance: A Case of Karatasi Industry Ltd, Kenya

Abstract

The digital revolution has given mankind the ability to treat information with mathematical precision, to transmit it at very high accuracy and to manipulate it at will. I.T innovations have the potential for changing the competitive game for any organization. This is because it helps to catalyze efficiency in the provision of better procedures resulting in better production and services. This study aimed at determining the strategic role of I.T on organization financial performance, a case of Karatasi Industry Ltd, Kenya. The objectives were to examine the strategic roles of I.T at the Karatasi Industry Ltd, Kenya, to find out the effect of I.T on financial performance at the Karatasi Industry Ltd, Kenya, and to assess the challenges facing the embracement of I.T at the Karatasi Industry Ltd, Kenya. The study used descriptive research design and used 51 who were drawn from various departments of Karatasi Industry Ltd, Kenya. The study made use of both secondary (literature review) and primary data. Primary data was collected by means of questionnaires and analysed using Statistical Package for the Social Sciences (SPSS). It was found that I.T plays a strategic role in the company,which results in improved financial performance of the company. A few challenges that affected the adoption of I.T were also highlighted such as budget of the company, government regulations, attitude of the staff, changes of I.T platform (obsolescence) among other were found to be challenges I.T faces. This research concluded that I.T indeed has a stategic role in the improvement of financial performance.