Effects of change management on adoption of ICT systems on parastatals in Kenya: A case of the national hospital Insurance fund (NHIF)

Abstract

Organizations exist and operate in dynamic environments. To survive and remain competitive in the evolving and highly competitive environment, organizations need effective change management strategies to develop the capacity to adapt to the changes. The study was aimed to determine the effect of change management on the adoption of ICT systems in parastatals in Kenya. The study project was based on three objectives: to identify the effect of employee training on the adoption of ICT systems, to find out how change in organizational structure affects the adoption of ICT systems, and to determine the effect of communication on the adoption of ICT systems. The study uses a descriptive research design. The target population was 300 employees from the NHIF headquarters. Stratified and simple random sampling techniques were used to select a sample size of 90 participants. Primary data was collected using a structured questionnaire. Descriptive statistics was used to analyze quantitative data, including the means, frequencies, and percentages. SPSS was used in data analysis. The data was tabulated and presented using tables and figures. The research findings indicate that employee training and communication both had a positive and significant effect (β = 0. 274, t = 2.564, p<.05) and (β= 0.281, t = 2.441, p<.05) respectively on the adoption of ICT system in parastatals in Kenya. Change of organizational structure however was found to have a non-statistically significant effect (β = 0.01, t = .091, p>.05) in determining adoption of ICT system in parastatals in Kenya. All variables or factors considered in this study jointly and significantly (F=5.694, p<0.001) explained adoption of ICT system in parastatals in Kenya. Based on the findings, the study recommends that the NHIF should ensure that the employee training provided internally and externally is appropriate and adequate as it was revealed to be a critical factor for successful adoption of ICT. Secondly, the study suggests to management to define the nature and impact of the change at NHIF to enhance effective communication. The communication of change at NHIF should be comprehensive as well as open while being practical as much as possible. The NHIF should utilize all channels of communication to enhance effective communication by providing information on the impact of the change. This will inform employees about the change as well as prepare them in advance, consequently, making the adoption of change more efficient. To the Academia, the study has added new knowledge on effect of change management on the adoption of ICT literature.