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Perception of Ict Firms in Kenya Towards Proposed Konza Ict City

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Perception of Ict Firms in Kenya Towards Proposed Konza Ict City PERCEPTION OF ICT FIRMS IN KENYA TOWARDS PROPOSED KONZA ICT CITY KENNETH KAMAU MUIRURI D61/61485/2010 A RESEARCH PPROJECT PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE MASTER OF BUSINESS ADMINISTRATION DEGREE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER, 2013 ii DECLARATION This research project is my original work and has not been presented for the award of degree in any other university or institution for any other purpose. Signature …………………………………….. Date ………………………. Kenneth Kamau Muiruri D61/ 61485/ 2010 This research project has been submitted for examination with my approval as the: Supervisor Signature …………………………………….. Date ………………………. Dr James Muranga Njihia iii ACKNOWLEDGEMNT I acknowledge God’s blessings for keeping me in good health throughout this period of my study, and for availing me an opportunity to acquire a great learning experience and an opportunity to interact with colleagues from various sectors. I wish to express my sincere gratitude to my supervisor Dr Muranga Njihia for his insightful guidance and tireless support throughout this journey culminating in successful completion of my MBA course. To all the respondents, accept my sincere appreciation as for without your valued responses, this project would not have come to fruition. Finally to my lecturers for their commitment, and to colleagues who I interacted with during course work for their good team work, motivational and encouraging words that helped to ensure that we completed assignments on time and providing an exciting time and sharing varying experiences. iv DEDICATION I dedicate this work to my wife Catherine for her unwavering support throughout this period of the study and to my son George and my daughter Faith to whom this will be an inspiration to work hard in their studies. v TABLE OF CONTENTS DECLARATION ........................................................................................................ III ACKNOWLEDGEMNT ............................................................................................ IV DEDICATION .............................................................................................................. V TABLE OF CONTENTS ........................................................................................... VI LIST OF TABLES ...................................................................................................... IX LIST OF FIGURES ...................................................................................................... X LIST OF CHARTS ..................................................................................................... XI ABBREVIATIONS .................................................................................................... XII APPENDICES ......................................................................................................... XIII ABSTRACT ............................................................................................................. XIV CHAPTER ONE: INTRODUCTION ........................................................................... 1 1.1 Background of the Study .......................................................................................1 1.1.1 Business Process Outsourcing and Information Technology Enabled Services .....2 1.1.2 Konza ICT City and Kenya Vision 2030..............................................................3 1.1.3 ICT Industry in Kenya .........................................................................................4 1.1.4 BPO and ITES Industry in Kenya ........................................................................5 1.2 Statement of the problem ...........................................................................................6 1.3 Research Objectives ...................................................................................................8 1.4 Value of the Study .....................................................................................................8 CHAPTER TWO: LITERATURE REVIEW ............................................................ 10 2.0 Introduction ............................................................................................................. 10 vi 2.1 National Innovation systems .................................................................................... 10 2.2 Innovation ............................................................................................................... 12 2.3 Science and Technology Parks ................................................................................. 13 2.4 BPO and ITES in a Global Context .......................................................................... 15 2.5 ICT Park Perceptions and Opportunities for ICT Firms in Kenya ............................. 17 2.6 Summary of Literature Review ................................................................................ 18 2.7 Conceptual Framework ............................................................................................ 20 CHAPTER THREE: RESEARCH METHODOLOGY ............................................ 21 3.0 Introduction ............................................................................................................. 21 3.1 Research Design ...................................................................................................... 21 3.2 Population ............................................................................................................... 21 3.3 Sample design .......................................................................................................... 22 3.4 Data Collection ........................................................................................................ 22 3.4.1 Reliability and validity ...................................................................................... 22 3.5 Data analysis............................................................................................................ 23 CHAPTER FOUR : DATA ANALYSIS, RESULTS AND DISCUSSIONS ............. 25 4.0 Introduction ............................................................................................................. 25 4.1 Respondent’s Profile ................................................................................................ 25 4.2 Level and form of involvement of ICT firms in Kenya ............................................. 28 4.2.1 ICT Firms Involvement in Konza ICT City........................................................ 28 4.2.2 ICT firms level of collaboration ......................................................................... 30 4.2.3 ICT firms form of Involvement ......................................................................... 30 4.3 Perceptions of ICT firms in Kenya towards Konza ICT city ..................................... 31 4.3.1 Government policies and infrastructure ............................................................. 32 4.3.3 Organizations Preparedness for opportunities and Konza location ..................... 33 4.3.4 Involvement and Training .................................................................................. 33 vii 4.4 Opportunities for ICT firms in Kenya in the proposed Konza ICT City .................... 34 4.4.1 Training ............................................................................................................ 34 4.4.2 Financial services, Consultancy and software development ............................... 35 4.4.3 On shoring and offshoring outsourcing ............................................................. 36 4.4.4 H1: ICT firms in Kenya have a positive opinion about Konza ICT City ............. 37 4.5.0 Key informants profile .......................................................................................... 37 4.5.1 Qualitative perspective .......................................................................................... 38 4.5.2 Education in Kenya, awareness creation and collaboration. ................................... 38 4.5.3 Government policies and infrastructure ................................................................. 39 4.5.4 Opportunities at Konza and its location ................................................................. 40 4.5.5 Perceptions of success of Konza............................................................................ 41 4.5.6 BPO-ITES onshoring and offshoring services ...................................................... 41 4.6 Discussion of findings.............................................................................................. 42 CHAPTER FIVE : SUMMARY, CONCLUSION AND RECCOMENDATIONS ... 44 5.1 Summary of findings ............................................................................................... 44 5.2 Conclusion ............................................................................................................... 45 5.3 Recommendations.................................................................................................... 46 5.3.1 Limitations of the study ........................................................................................ 47 REFERENCES ............................................................................................................ 48 APPENDICES ............................................................................................................. 53 viii LIST OF TABLES Table 1 Level of involvement of organizations ......................................28
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