Implication Of Information Technology Adoption On Business Models Adopted By Law Firms In Nairobi County

ABSTRACT

Competitive advantage in the market and maximization of stakeholder profits have been the main motivators for investors. However, due to competition, globalization and technological advancement there is need to align technological adoption with business models. Most organizations have adopted information technology to ease their operational procedures and cumulatively optimize on their business models. Hence, the current study seeks to establish the implication of information technology adoption amongst law firms in Nairobi County. Specifically, to examine the business models adopted by law firms, to establish information technology adoption levels in law firms, to determine the effect of information technology adoption in business operations in law firms and consequently to establish the relationship between information technology adoption and business models adopted by law firms in Nairobi County. The study was anchored on diffusion of innovation theory, technology acceptance model, disruptive innovation theory and dynamic capabilities model. Simple random sampling was adopted to select 97 law firms in Nairobi County. Primary data was collected though a questionnaire administered to managing partners of 97 law firms in Nairobi County. The study adopted a descriptive research design and descriptive statistics such as mean, standard deviation, frequency and percentages as well as inferential statistics were used to analyse the data. The study was able to achieve a response rate of 86.6% and the findings were presented in figures and tables. Results from the study indicated that the most common business models were customer focused and service-based models, which were common amongst all firms. From the findings, there was no agreement or disagreement on whether the levels of information technology adoption amongst law firms in Nairobi County could be classified as early adopters, early maturity, late maturity and laggards. Majority agreed that information technology adoption had an effect on law firm’s business operations. Information technology adoption had affected time management, file and client’s information management, enhanced client’s interactions and increased efficiency within their law firms. Regression and correlation analyses revealed positive and significant relationship between information technology adoption and the type business model adopted. The study revealed that business models adopted by any law firm is anchored on their desire to promote customer satisfaction and enhance their revenue capacity. Secondly, most law firms in Nairobi County are either early adopters or early maturity adopters since they had an average of 3.4 out of 5. Thirdly, there is need for examination on the state of information technology adoption by respective law firms to optimize on benefits associated with respective business model adopted by law firms. It is recommended that law firms in Nairobi County should align their business models according to their customer needs. In the arena of academia, scholars can contribute towards this end by undertaking more studies to fill the knowledge gap particularly on the business operations in law firms and business models that are specific to law firms. Further empirical studies on information technology adoption specific to legal practice and operations is recommended.