THE EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY SYSTEMS ON ORGANIZATIONAL PERFORMANCE AT UGANDA REVENUE AUTHORITY

INTRODUCTION

1.1Introduction

The study aims at establishing the effect of information and communication technology systems on organizational performance a case study of Uganda Revenue Authority. In this study, information and communication technology systems is the independent variable and performance is the dependent variable. The key dimensions for information and communication technology systems; computer systems software, information systems infrastructure and user knowledge and skills. While performance will be measured inform of financial performance, customer satisfaction and growth.

According to Zahra et al., (2019) Governments across the world are investing heavily into the information and communication technology systems to enable better financial performance, increased customer satisfaction and growth of government organizations for example UK government spent 124.8 billion US dollars from 2008 to 2017 to develop the information and communication technology systems to enable them serve their customers timely and efficiently there by maximizing on their performance. However, no researcher has investigated the effects of information and communication technology systems on performance of an organization with specific reference to URA, this has therefore prompted the researcher to carry out the study.

This chapter presents background of the study, the problem statement, purpose, objectives of the study, research questions, study scope, justification of the study, significance, Hypotheses, conceptual framework, as well as operational definition of key terms and concepts.

1.2 Background of the study

The section presents, historical background, theoretical, contextual background, conceptual background.

1.2.1 Historical Background

The evolution of information and communication technology systems has a long history however can be specifically traced from the invention of Herman Hollerith’s census tabulator which was Invented to process the 1890 U.S. census this brought the first step in automation and development of the information systems Era. According to Sutduean  et al., (2019)  the UNIVAC I, was the first computer installed at the U.S. Bureau of the Census in 1951 which helped in administrative duties while in general electric the computers were installed for commercial purposes in 1954 this later paved way for the full scale adoption of personal computers globally in 1970s.

Information and communication technology systems has progressed through personal computer era to client server era and currently to enterprise internet, this has been spearheaded by the United States military department since 1945 whose main goal has been to eliminate communication barriers and enable better performance; however, this technological advancement has been adopted by most governments across the globe to help in the improvement of performance (Shahzad, et al., 2020)

According to Ricci et al., (2015) the adoption of internet can be traced back with the invention of the World Wide Web in 1991. This gave way to the adoption of internet in government organizations like in Health, Education and administration globally.

Adoption of computers in Africa can be traced in 1960 with the introduction of the first IBM 1401 data processing system in Johannesburg South Africa which was installed in the IBM Service Bureau and was first unveiled in October 1959 (Dwivedi et al., 2015).

Other African countries started using computers after South Africa especially by the late 1990s most of the government across the sub-Saharan Africa started adopting information systems in the running of the daily activities and as of 2017, Africa had more than 450 million internet users with specific countries like Nigeria individually having 98 million users and Egypt having 49.23 million this has been spear headed by countries to enhance better performance (Ziemba, E. (2017, September).

Toots, M (2016) asserts that the use of information systems by the government has been adopted by countries in East Africa like Kenya in key sectors like education, Health, revenue collection and management of water resources to improve on the efficiency of the government key agencies (Maulani, & Hamdani, 2019).

The adoption of Information systems in Uganda can be traced from the introduction of the first computer ever in Uganda in 1967 in Ministry of Finance and in 1968, the second mainframe arrived at Makerere University, however, it was not until June 2006 that the Government of Uganda created a Ministry of ICT to enhance the adoption of information systems in the government agencies in Uganda (Ramadani, 2017).

According to URA, (2015) URA has made great strides in improving service delivery through the adoption of information systems, this has been through introduction of electronic methods like electronic declaration of customs transactions, electronic registration, online payment, in addition to that in 2010, to offer personalised services to taxpayers, the organization created taxpayer-centric Portal to enable the provision of services without hindrance and electronic service delivery, anytime, anywhere with quick & high quality electronic services and greater degree of transparency to taxpayers.

Secondly with the adoption of information systems, most of the borders like malaba, provide 24/7 services and other place like Entebbe airport. This has reduced in service turnaround time with little interaction with the Department and reduction in taxpayer’s visit to URA through the adoption of information systems techniques. Different electronic payment methods have been adopted like Mobile money, Airtel money, Ezee pay and Pay Way.

Since the establishment of URA in 1991, there have been many challenges related to revenue collection and the accessibility of its services by tax payers and as of 2003 URA adopted Asycuda ++ to enable easier collection of taxes and management however realization of the weaknesses of ASYCUDA ++, URA adopted ASYCUDA world in 2011 to enhance better performance within the organization and reduce on unnecessary costs. According to Observer, Ssempogo, H (2013, April 16^th) indicates that in 2011 URA decided to upgrade from Asycuda++ to Asycuda World in order to respond to the ever changing business needs. Asycuda World is more robust and flexible and, therefore, able to adapt to the different settings, it also provides an easier channel for interconnectivity with other systems.

1.2.2 Theoretical background

Diffusion of Innovation theory will guide the study to investigate the information and communication technology systems on performance of an organization. According to Kaminski, (2011) the diffusion of innovation theory states that diffusion is governed by four elements, the innovation itself, communication channels, time and social systems. The four elements, explain the process of change as determined by employees and the whole organization.

Diffusion assumes that the propensity to adopt an innovation is primarily a function of the availability of information. It also assumes that in the dissemination of information particularly at the local scale, personal contacts are of much greater significance than the mass media (Deligiannaki & Ali, 2011).

Diffusion of innovations theory is often simplified to concentrate solely on a product or innovation. Little attention has been paid on the complex cultural, economic, technology and other factors that determine organizational performance (Deligiannaki & Ali, 2011).

The Diffusion of Innovation theory, developed by Everett Rogers, is widely recognized and has several strengths that contribute to its popularity and usefulness in understanding the adoption and spread of innovations. Here are some of its key strengths; Comprehensive framework: The Diffusion of Innovation theory provides a comprehensive framework that encompasses various factors and processes involved in the adoption and diffusion of innovations. It considers the interplay between individuals, social systems, communication channels, and the innovation itself, the theory effectively describes and explains how and why innovations are adopted by individuals and groups. It offers insights into the diffusion process, including the stages of adoption, the characteristics of adopters, and the influence of interpersonal relationships and social networks, the theory enables researchers and practitioners to predict the rate and pattern of adoption for a particular innovation, the Diffusion of Innovation theory has practical applications in various fields, including marketing, public health, technology adoption, organizational change, and policy development. It provides a roadmap for designing effective communication strategies, targeting specific adopter groups, and facilitating successful adoption and implementation, the theory recognizes the crucial role of communication channels and interpersonal influence in the diffusion process. It highlights the importance of opinion leaders, social networks, and communication strategies in shaping individuals’ attitudes and behaviours towards adopting innovations and The theory has been successfully applied across different domains and cultural contexts. While the diffusion process may vary in different settings, the underlying principles and concepts of the theory can be adapted and applied to understand the dynamics of innovation adoption in diverse environments.

1.2.3 Conceptual background

Information and Communication Technology can simply be defined in its simplest form as an electronic medium for creating, storing, manipulating, receiving and sending information from one place to another. It makes message delivery faster, more convenient, easy to access, understand and interpret. It uses gadgets such as cell phones, the Internet, wireless network, computer, radio, television, Satellites, base stations etc. These resources are used to create, store, communicate, transmit and manage information (Zonneveld,  et al., 2020). Information and communication technology (ICT)  can also be defined as the study of complementary networks of hardware and software that people and organizations use to collect, filters, process, create and distribute data. According to Jessup, and Valacich, (2008) ICT encompasses a variety of disciplines such as: the analysis and design of systems, computer networking, information security, database management, and decision support systems.

Valacich & Schneider, (2015) indicates that information and communication technology systems, is an organized combination of people, hard ware, software, communication network, and data resources, policies and procedures to form the activities that stores, retrieves, transform data resources into information. Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.

The Components of information and communication technology systems include; Technology; this can be thought of as the application of scientific knowledge for practical purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology is a part of our lives in so many ways that we tend to take it for granted.

The components of information systems hardware, software, and data all fall under the category of technology. Hardware; Information systems hardware is the part of an information system which involves physical components of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware.

Software; Software is a set of instructions that tells the hardware what to do. Software is not tangible it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. There are several categories of software, with the two main categories being operating-system software, which makes the hardware usable, and application software, which does something useful. Examples of operating systems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone.

Takieddine & Sun, (2015) indicates that computer software, or simply software, is a collection of data or computer instructions that tell the computer how to work, in contrast to the physical hardware from which the system is built, that actually performs the work. Computer software includes computer programs, libraries and related non-executable data, such as online documentation or digital media. Computer hardware and software require each other and neither can be realistically used on its own.

An information system Infrastructure is the foundation or framework that supports a system or organization. Gilmour et al., (2015) indicates that in computing, information technology infrastructure is composed of physical and virtual resources that support the flow, storage, processing and analysis of data. Infrastructure may be centralized within a data centre, or it may be decentralized and spread across several data centres that are either controlled by the organization or by a third party, such as a collocation facility or cloud provider.

According to Kroenke & Boyle (2015) the data centre hardware infrastructure usually involves servers; storage subsystems; networking devices, like switches, routers and physical cabling; and dedicated network appliances, such as network firewalls.

Systems Infrastructure includes; software, hardware, firmware, networks and Websites that is used by an organization to facilitate communication (Ajuwon, 2015). In this study systems infrastructure is taken to mean all the necessary systems facilities like the computers, internet, software, hardware, websites and networks (intra and extra connection) that are used by an organization to facilitate better performance.

User knowledge and skills is defined as the ability of an individual to have the required knowledge to operate the computer systems (Brabham & Guth, 2017). In this study user knowledge and skills mean the ability of the organizational employees and the clients to interact using computers, internet and all other online services, this will specifically be measured in terms of Computer literacy, User competence and Education level.

Competencies have been identified as motives, knowledge, skills, traits, and one’s self-image or self-concept. User competency in information systems have been found to be lacking in most organization, since different organizations across the globe have workers who have not been fully trained in Information systems hard ware like use of computer key board and they also lack the required knowledge in software.

According to Al-Rahmi, et al., (2020) performance is a way an organization measures its achievement in line to its strategy and objectives. In this study, performance means the ability of an organization to achieve its targets. In this study, performance is a dependent variable and it has been interpreted to represent financial performance, customer satisfaction and growth.

Performance of the organization is measured in different dynamics mainly through the ability of the organization to achieve its strategic goals and visions Kaplan, (2015)  further states that the balanced Scorecard is set to align business activities to the vision and strategy of the business, improve internal and external communications, and monitor business performance against strategic goals.

In this study, performance is measured in three key dimensions; Financial performance; Financial performance of the organization involves the organizational ability to meet the shareholders’ expectation and perception.

When the business is able to meet the shareholders’ expectation and perception we say the organization has performed well.

According to Iglesias et al., (2019) Customer satisfaction is defined as a result of comparison between what one customer expects about services provided by a service provider and what customer receives as actual services by a service provider.

Good customer satisfaction has an effect on the profitability of nearly every business. For example, when customers perceive good product/service, each will typically tell nine to ten people. It is estimated that nearly one half of American business is built upon this informal, “word-of-mouth” communication. Customer satisfaction results can help to monitor customer satisfaction results over time.

In this study, the growth of the organization is measured by its ability to meet its targets and exceed them, if the organization is able to meet its targets it has growth while if it fails to meet its target we say it’s not growing.

Growth of an organization is usually expanded into three sub categories that is to say; to make profits to continue in existence (survival). Growth is the ultimate measure of success of the business. Without growth then obviously there will be no fulfilment of other objectives.

1.2.4 Contextual Background

This study will investigate the effect of Information and communication technology systems on performance of government agencies at Uganda Revenue Authority.

To meet the main objective of Uganda Revenue Authority, it sets monthly and yearly revenue collection targets to its employees. These targets are a result of a strict enforcement of carrying out URA business by employees through emphasizing strict verification by URA staff on implementing Information systems like E-TIN registration, e-payments, e-taxation, e-registration and e-motor vehicle registration (Turyakira, 2011).

Table below showing the deficits and target of Uganda revenue

Source: URA Report (2020).

Uganda revenue authority adopted Information and communication technology systems to enable it in the management of the revenue collection however it has been facing deficits in its collection as indicated in the table above. Uganda Revenue Authority has employed Information systems in the collection of taxes to ensure that there is compliance among the tax payers because of the user friendly systems like E-registration, e-taxation, e-Tin registration, and e-payments to reduce on the collection deficits (Kabafuzaki, 2010).

Uganda Revenue Authority has continued to receive budget deficits which has been shown by the financial years 2015/2016 and 2016/2017. Uganda Revenue Authority has accumulated total deficits of 862 billion Ugandan shilling from 2015 to 2018 despite implementing information communication systems for the last five years.

1.3 Problem statement

Kangave et al.,(2016) Information and communication systems in URA was adopted in 2003 into the  domestic taxes department to increase revenue collection, improve quality of administration, reduce costs of compliance and provide services to the tax payers all the time from anywhere.

Despite the adoption of ICT systems like the ASYCUDA World by URA in 2010 with an aim of enhancing better customer service, improve on revenue collection to minimize deficits, enhance organizational performance, URA is still faced with numerous challenges like poor customers’ service, deficit in revenue collection and low productivity of the internal staff which has led to poor performance of the organization. Gaalya (2017) further reports that poor revenue collection has led to the failure by Uganda revenue authority in meeting the revenue collection target as shown by the increased deficits. In 2016/17, URA collected Shs12.7 trillion about 14 per cent of Gross Domestic Product against a target of Shs13.1 trillion, more to that URA also made revenue loss of Shs. 404 billion in the financial year 2015/2016 and a deficit of 2.6 trillion in financial year 2017/2018, in addition to the above, the ASYCUDA world has been reported to be complicated by the users therefore with the rising deficits in revenue collections departments at URA, the organization may fail to hit its revenue target in the coming financial years leading to a total organizational failure as whole. These challenges faced by URA therefore warrants examining the effect of information and communication systems on organizational performance with specific reference to Uganda Revenue Authority.

1.4 Purpose of the study

The study seeks to establish the effect of Information and communication systems on organizational performance.

1.5 Objectives of the study

1. To assess the effect of information systems software on performance of URA.
2. To establish the effect of systems infrastructure on performance of URA.

• To examine the influence of user knowledge and skills on performance of URA.

1.6 Research questions

1. What is the effect of information systems software on performance of URA?
2. What is the effect of systems infrastructure on performance of URA?

• What is the influence of user knowledge and skills on performance of URA?

1.7 Hypotheses

H₁: Information systems software affects organizational performance.

H_2: There is a positive effect of system infrastructure on organizational performance.

H₃User knowledge and skills does not affect Organizational performance.

1.8 Conceptual framework

Information and communication technology systems have become the centre of all developments in any economy. It has thus become inevitable to embrace computer use in any work. The government of Uganda designed a strategy aiming at changing the operational design and culture of the public sector to better improve on performance of its agencies.

Information and communication technology system: The implementation of any information system requires advance technology infrastructure like for web based application that requires dedicated server and user friendly web interface. Below presented is the conceptual framework showing how information and communication technology system relates to performance of government agencies.

Independent Variable                                                                          Dependent Variable

Information and communication technology systems         Organizational Performance       

Figure 1: conceptual framework

Source: Kaplan (2012)

According to the figure illustration above, information systems was the independent variable influencing organizational performance. Information system was looked at in aspects of systems software, the infrastructure used, and User knowledge and skills which mainly related to the competence of the employees in an organization to improve on performance.

Kaplan (2012) in the industrial age, enterprises used to evaluate their performance on financial scores only. However, in the modern error with adoption of Information systems performance now is measured in terms of growth, customer satisfaction and financial performance.

1.9 Significance of the study

Future scholars may get information regarding the effect of computer systems software on performance of government agencies.

The study may also provide more literature to academicians about the effect of systems infrastructure on performance of government agencies in Uganda.

The study might also enable policy makers to have information on how to finance Information system to enable better performance.

The findings of the study may also enable the policy makers to have information on how to train the employees to enable them provide better performance of government agencies.

The study would also enable the policy makers to understand the different ways of enhancing better performance of government agencies.

1.10 Justification of the study

The study will be carried out because of the following reasons. In spite of the benefits of Information and communication technology systems like; improved communication, increased transparency, and access to information for citizens, digital diffusion of information is often achieved at high cost by government agencies. Ugandan government also adopted Information systems practices with the view of enhancing better organizational performance in its key departments; however, the government agencies in Uganda have experienced numerous challenges of poor performance.

This therefore, prompts the researcher to investigate into the effect of information and communication technology systems on organizational performance with specific reference to URA.

1.11 Scope of the study

This section will include the content, geographical and time scope.

1.11.1 Content scope

The study will concentrate on two variables; Information and communication technology Systems-independent variable, and organizational performance -Dependent variable. It will further expounded on the effect of Systems Software, Systems infrastructure and user knowledge and skills. The organizational performance has the dimensions of; financial performance, which will be measured in terms of Shareholders expectation and Shareholder perception while Customer satisfaction was also measured in terms of Customer perception, Customer expectation and Customer interaction and lastly Growth which include; Exceeding targets and Achieving targets.

1.11.2 The geographical scope

The study will be carried out from Uganda Revenue Authority (URA). URA is one of the subsections under the Ministry of finance, Uganda Revenue Authority is located at plot 95 Kampala road, Nakawa Industrial Area, Kampala, Uganda .URA is found in Nakawa Division of the city of Kampala, approximately 6.5 kilometres (4 miles), by road, east of the city centre, off of the Kampala-Jinja Highway.

1.11.3 Time scope

The period of data to be considered from Uganda Revenue Authority will be from 2010 to 2021; this is because, during this period, Uganda Revenue Authority adopted Information and communication technology systems like ASYCUDA world, EFRIS among others to enhance better performance in revenue collection (Sanya, 2015, 2nd November).

1.12 Operational definition of key terms

Information and communication technology systems: this refers to the user of electronic systems like the computers and mobile phones to transfer information from one person to another to facilitate business transaction.

Performance: This refers to the level at which the organization can effectively utilize the resources at its disposal.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter examines the related literature to the study. It involves theoretical review, actual literature review, and a summary of literature review, to assess the effect of information systems software on performance of URA, to establish the effect of systems infrastructure on performance of URA and to examine the influence of user knowledge and skills on performance of URA.

2.2Theoretical review

The study will be guided by Diffusion of Innovation theory to examine the effect of information and communication technology systems on performance of government agencies. The diffusion of innovation theory states that diffusion is governed by four main interacting elements, the innovation itself, communication channels, time and social systems. According to Deligiannaki & Ali,(2011) The four components of diffusion explain the process of change as determined by individuals and the whole organization.

Using this theory, the innovation of ICT systems at URA are numerous, these include; adoption of modern website systems and the use of software in most of its operations. URA adopts these innovations to enable the organization to eliminate the key challenges faced by the organization.  Diffusion assumes that the propensity to adopt an innovation is primarily a function of the availability of information. The information systems at URA will be adopted to enhance better performance, While the Diffusion of Innovation theory proposed by Everett Rogers in 1962 has been widely influential in the field of communication and technology adoption, it is not without its criticisms. Some of the common criticisms include;

Lack of consideration for social and cultural factors: The theory places a significant emphasis on individual characteristics and overlooks the influence of social and cultural contexts on the diffusion process. Factors such as social networks, norms, and cultural values can greatly impact the adoption and diffusion of innovations, which the theory fails to adequately address.

Oversimplification of the diffusion process: The theory assumes a linear and predictable diffusion process, where innovations spread gradually from innovators to early adopters, then to the early majority, late majority, and finally to laggards. However, in reality, the diffusion process can be complex and non-linear, influenced by various external factors that can disrupt or accelerate the adoption.

Limited attention to power dynamics: The theory does not explicitly address power dynamics and inequalities in the diffusion process. It assumes that all individuals have equal access to information and resources to adopt innovations, neglecting the influence of power structures, socioeconomic disparities, and access barriers that can hinder or accelerate the diffusion process.

Neglect of resistance and non-adoption: The theory primarily focuses on the factors that facilitate adoption, but it pays less attention to the reasons behind resistance and non-adoption of innovations. Understanding and addressing resistance and barriers to adoption are crucial for a comprehensive understanding of the diffusion process.

Lack of consideration for context and time: The theory does not adequately account for the contextual and temporal dimensions of the diffusion process. Different innovations may have different adoption trajectories based on the specific context and time period. The theory’s generalizations may not hold true in all situations.

Insufficient consideration of innovation characteristics: While the theory acknowledges the importance of innovation attributes, it does not provide a comprehensive framework for understanding the role of innovation characteristics in the diffusion process. Different types of innovations may require different strategies for successful adoption.

 2.3 The effect of information systems software on performance

Information systems software covers vast areas of technologies such as mobile and security, wireless technology, software development, telecommunications and intelligent systems. According to Kwok Hung Lau & Haibo Huang (2012) Information system has a huge impact on industries, the community in general and our daily lives. Information systems software can be applied to many fields. One of the emerging applications in recent years is in most of the organizations to enhance better performance while (Lee & Kim, 2016) notes that Information systems software is fast becoming one of the main drivers of change, posing new strategic challenge. The business environment today has been undergoing unprecedented change and many companies are seeking new ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global marketplace, the pressure on organization is to find new ways of creating and delivering value to customers in growing stronger.

According to Laudon & Laudon, (2016) technology can be thought of as the application of scientific knowledge for practical purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology is a part of our lives in so many ways that we tend to take it for granted.

Pearlson, Saunders, & Galletta, (2016) emphasizes that the need for information systems development cannot be understood unless one also understands the use of software in the organization and unless the software can be applied to the organization to enhance its better performance and enable the organization achieve better performance.

The integration of information technology (IT) and business processes has irrevocably changed the way in which modern organisations operate. according Grant  & Meadows, (2016), The majority of medium-to-large organisations invest significant amounts of time, money and effort on information systems (IS); which combine hardware, software and networking capacity to enhance the efficiency and effectiveness of their business processes. In some circumstances the IS/IT that supports a business process becomes so integral that it can be very difficult to differentiate between them. The way in which organisational accounting processes have become embedded and reliant upon accounting information systems (AIS) is an apt example of this phenomenon.

Pinedo, (2016) indicates that Information systems software works hand in hand with the hardware to enable the organization be in position to achieve its goals and objectives. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware.

Chen et al., (2016) indicates that Software is not tangible it cannot be touched. When programmers create software programs, what they are really doing is simply typing the list of the organization’s instructions that tell the hardware what to do. There are several categories of software, with the two main categories being operating-system software, which makes the hardware usable, and application software, which does something useful. Examples of operating systems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and Angry Birds.

According to Huang et al., (2013), Governments around the world are under the pressure from citizens and business to be more open and transparent in managing public funds, deliver quality public services as per needs of citizens therefore, in the last quarter of 2017, the world wide expenditure on software development was 480 billion dollars (Hughes et al., 2017).This expenditure was in information systems software to enable better service delivery and improve on general public sector performance.

According to Andrade & Doolin (2016) Internet and intranet technology has practical integrative applications for organizations. In addition to the practical use of IT as an integrative mechanism, the management of technology also has increased, makes a strong argument that companies use IT to structure organizations. In addition, he argues that he and many others consider the management of IT as the biggest challenge. The research from this thesis addresses both of these two issues; namely, the use of IT for integration and the implications associated with the management of information technology itself.

According to Rana et al., (2017) information systems initiatives in India was first started in 1990 with a minimal financial investment into National Informatics Centre to enable computerization of operations and automation of the pension fund. This was to eliminate the several challenges with the mismanagement and poor record keeping of the files of the pensioners.

Krecie (2016) reports that the government of Philippines invests around 8-10% of its Gdp on Information systems to enable integrating the operations of government agencies and also on improving transparency in public sector. These financial investments in information systems by different public sector organizations across the globe, is a manifestation of the long-term benefits of the service in enhancing better organizational performance.

The government of South Africa has over the last decade, recognized the importance of information and communications technology (ICT) and more recently Information systems in improving the standards of service quality and increasing the overall efficiencies of government (Aisara & Pather, 2011). As a result, the government has provided systems software to different public institution amounting to over R14 billion during2015/2016 financial year.

Abdullahi(2014),reports that the government of Nigeria in an effort to eliminate inefficiencies in service delivery and improve general performance, the government invested 32 billion dollars in 2015 to improve on the network systems and elimination of inefficiencies in the Information systems performance. Karim, 2015 reports that Nigeria has some of the worst public sector delivery systems in the world characterised by corruption and delays in delivery of public services.

Hypothesis

H_o There is a relationship between information systems software and performance

2.4The Information Systems infrastructure on organizational performance

Wachira(2015) the use of computer systems in the organization improves performance in a different ways. Firstly, the computers improve the level of coordination between different departments in a public sector, this has enabled the government across the globe to improve on public service delivery effectiveness and general better organizational performance of the government agencies.

Wachira  (2015) further contends that Information systems infrastructure also improves on speed and reliability of organizational transfer and processing of information among members in the organization, this helps the different departments in the organization to send and receive information in a short time which leads to improved performance and better competitive strength of the organization. There is a delay of government services in reaching the people that need it in Ethiopia; some of the departments that people delays in accessing services include the pension (Lavers & Hickey, 2016).

The use of internet services as an effective Information systems infrastructure in Nigeria has been adopted by the government to eliminate unnecessary government costs incurred as a result of paper work and enhance performance of public sector agencies in the country (Ukachi, 2015).

Lavers  & Hickey  (2016) indicates that Nigerian government agencies have been blamed for poor response to the needs of the citizens and high costs of the paper work involved in the government administration.

Rotich  (2015) also believes that the adoption of computers  in the organization is to provide better and an effective communication between different departments in the organization and also between the organization and the outside world. The government’s effort to use computers in the monitoring of public agencies is to ensure that business between the government and the citizens is effective and fast.

Wilson et al., (2015) states that the use of websites is to enable long-term relationship between the organization and the customers, he further asserts that websites is where customers keep checking on the major changes in the organizational products. The public sector websites provide information to the customers about the products the organization has.

Government across Sub-Saharan Africa have acquired advanced software in key government agencies like Taxation and water management systems, this is to enable government manage public utilities better.

Paul & Pascale(2013) the government of Ghana was able to realize an increase in revenue collection due to the use of advanced software and internet services, using this system, the public could pay for their taxes online. With the use of systems infrastructural facilities, Ghana was able to realize an increase in revenue collection by 22% in 2017 this was estimated at GH¢13.2 billion against the target of GH¢12.8 billion.

Ronald & Nazarius (2011) Uganda Revenue Authority has been experiencing a failure to meet its targets which has been a challenge to the organizational top management despite the adoption of ASYCUDA world software. Ghmire, (2014) indicates that taxation software enhances efficiency in revenue collection and reduces costs.

Hypothesis

H1: Information Systems infrastructure affects organizational performance

2.5 Influence of user knowledge and skills on organizational performance.

According to Ajuwon, (2015) Knowledge has become one of the most highly valued commodities in the modern economy. Further, knowledge is considered the principal tool of competitiveness and innovation in the composition of commodity chain to the broader processes of regional and national economic development. In line with Tarhini et al., (2015) the new paradigm is that, within the organization, knowledge must be shared in order for it to grow thus sharing knowledge among its management and staff grows stronger and becomes more competitive.

Some of the most significant changes are the growing importance of knowledge as a catalyst of economic growth within the global economy, the revolution of information and communication technology (ICT), the integration of the global labour market and worldwide socio-political transformations (Lwoga et al., 2016).

Access to and production of knowledge are essential prerequisite for participation in the global economy as noted by (Lwoga et al., 2016).

Information and communication technologies have significantly increased the speed of production, use and distribution of knowledge, thus making a country’s economic and social wellbeing dependant on how quickly it can adjust its capacity to share and generate knowledge.

Transformations brought to different firms as a result of information systems offer many potential opportunities for both developed and developing nations (Komba et al., 2016). However, on the negative side, they also pose serious threats, and especially for developing nations. There is ample evidence that processes of globalization and the ascent of Manuel Castell’s ‘Information Society’ have given rise to new problems, such as the growing knowledge gap and digital divide between the information rich and the information poor among and within nations.

Knowledge Management (KM) has attracted the attention of researchers over the last decade since it is considered an important tool to achieve innovation and sustainable competitive advantage (Meeker, 2015). Takieddine & Sun (2015) noted that in highly unstable economies the only sure source of lasting competitive advantage is knowledge.  Firms that adopt knowledge management practices perform better than competing firms that do not (Bayero, 2015), on the same line of thought, Ukachi, (2015) further asserts that knowledge management practices have been implemented in different industries both service and manufacturing to enhance better performance and increased output.

The adoption of computers in education is not a new phenomenon, Ahmadi (2013) asserts that in the 1970’s, its promoters claimed that it would transform and save education.

According to Ludeman & Erlanson, (2013) the late 1980’s saw a growing shift towards computer integration which emphasized the use of computers in most of the government’s daily work like the preparation of reports, accountability and monitoring of government projects which changed from manual to automated.

According to Busagala (2013) 1990’s saw a heightened focus on increasing the use of computer technology in Health, defence and Education departments of most governments across the globe., the author further notes that there is growing attention and pressure to implement technology in education, one of the most significant features of the technological or digital era of much relevance to education is the Internet.

Hypothesis

H_O: user knowledge and skills influence organizational performance.

2.6 Summary of the literature

The literature of the study indicates that Information systems software can have a significant impact on performance within organizations. Here are some key aspects to consider; Efficiency and Productivity: Well-designed and properly implemented information systems software can improve efficiency and productivity by automating tasks, streamlining processes, and reducing manual errors. For example, software that automates data entry or generates reports can save time and effort, allowing employees to focus on more value-added activities, Decision-Making Support: Information systems software can provide valuable insights and data analytics that support decision-making processes. Advanced analytics and reporting capabilities can help organizations make informed decisions based on real-time data, leading to better strategic planning and resource allocation and Collaboration and Communication: Software applications that enable effective collaboration and communication among team members can enhance performance. Features like document sharing, project management tools, and real-time messaging platforms facilitate collaboration, improve coordination, and foster teamwork. Data Management and Accuracy: Information systems software plays a crucial role in managing and maintaining data integrity and Customer Relationship Management (CRM): CRM software allows organizations to manage and analyze customer data, track interactions, and streamline sales and marketing activities.

Computer user knowledge and skills can have a significant impact on organizational performance. Here are some ways in which computer user knowledge and skills can affect an organization; Increased productivity: Computer users who possess strong knowledge and skills can navigate software applications, operating systems, and digital tools efficiently. , : Computer users with good knowledge and skills can effectively utilize collaboration tools, such as project management software, cloud-based storage systems, and video conferencing platforms. This allows them to collaborate with team members effectively, irrespective of geographical locations, leading to improved teamwork and productivity. And Computer users who are proficient in data management skills can effectively organize, analyse, and interpret data using spreadsheets, databases, and data visualization tools. This enables them to make informed decisions based on accurate and up-to-date information, leading to improved efficiency and better business outcomes. Lastly Computer users who have a strong understanding of troubleshooting techniques and problem-solving methodologies can independently address technical issues and challenges.

CHAPTER THREE

CHAPTER THREE: METHODOLOGY

3.0 Introduction

This chapter provides justifications of the methodology that will be used for the study. The research design and analytical path of any research project should have a specific methodological direction based on its research objectives and framework. Provided is therefore a scientific process that will be followed to qualify the generalization of findings on the topic of the study. They will include the research design, study population area, sample size, sampling techniques and procedure, data collection methods, data collection instruments, validity and reliability, data quality control, data analysis, data measurements, ethical considerations and limitations of the study.

3.1 Research Design

According to Fisher (2007), a research design is defined as a detailed outline of how an investigation takes place. The study will adopt a descriptive survey design which will provide descriptions of the variables to answer the research questions. This study will use two approaches; the qualitative and quantitative research design.  Kothari (2004) notes that quantitative design is based on measurement of quantity hence this will be used in calculating simple percentages and the number of respondents. Bryman et al., (2003) reiterates that quantitative design also allows comparisons between respondents, giving the right perspective on the variables under study. The choice of this technique is also guided by the fact that the study aims at generating findings, which will facilitate a general understanding and interpretation of the problem. The quantitative data will be triangulated with Focus Group Discussions and Key Informant Interviews to provide explanatory information to the statistical data.

3.2 Study population and Area

The study will focus on the employees of Uganda Revenue Authority. Trochim (2006) defines a study population as the group in which a researcher wants to pick a sample from in order to make generalizations.

3.3 Sampling techniques

This study will employ both probability and non-probability sampling techniques. Probability sampling techniques will include simple and stratified random sampling which will be used to URA staff who are at lower level ranks. This will ensure that there is representativeness. Besides, it will  provide an equal chance to all of being selected. Non-probability sampling techniques will include purposive; namely key informants to ensure people with particular information about the subject under study are selected.

3.4 Determination of the sample size

It is impossible to study the whole targeted population of the study and therefore the researcher will take  a sample of the population this is also further supported by Mugenda and Mugenda (2003) who notes that a research should choose a sample out of the whole targeted population. A sample is a subset of the population that comprises members selected from the population. Using Krejcie and Morgan’s (1970) table for sample size determination approach, a sample size of 149 respondents will be selected from the total population of 239 employees.

Table 1: Showing Population and Sample size of respondents

Source: URA Employee List, (2021)

3.5.0 Data sources and collection instrument

Majorly, two types of data sources – primary and secondary will be used for this study

3.5.1 Data sources, Collection Procedure and Instruments

Two types of data namely primary and secondary data will be used to collect data using different methods. Primary data will be collected using questionnaires and direct interviews. The study will adopt a mixture of qualitative and quantitative methods to obtain data on the topic under study. Qualitative data will be collected using Key Informant Interviews (KIIs).

Quantitative methods will be used to generate quantifiable data, using a questionnaire, which will be the main instrument used because of its convenience and efficiency in data collection. The different tools and data sources will be used to make triangulation feasible (Amin 2005). 

3.5.2 Secondary data sources

Secondary sources of data that will be reviewed include scholarly books, magazines, dissertations journals and articles. This source is useful in collecting data from already written literature for example e-books, journals, published articles and periodicals as part of literature review. Documentary resources will be classified in order to facilitate the data collection and textual analysis (Mubazi, 2008).

3.6 Data collection methods

The section presents data collection methods which include; questionnaire survey, interview and documentary review.

3.6.1Questionnaire Survey

Questionnaire Survey method will be used to obtain the opinion of the respondents regarding the topic under study. According to (Onen & onen, 2013) questionnaires are important in research because the respondents are given time to think and they don’t feel intimidated. Questionnaire gives the respondents ample time to respond to the questions when ready and they can be kept for future references. This method will be deployed to capture information from Staff Members, Regional Heads, Division Heads and tax payers.

3.6.2    Interview guide

Interviews are an effective qualitative method for getting people to talk about their feelings, opinions and experiences. They are also an opportunity for us to gain insight into how people interpret tax administration and compliance. The views of the respondents will be a personal reflection of their personal experience relating to the study topic. Open ended questions will be allowed ease of expression and capture of vast information from study participants.  This method will be deployed to capture information from the Executive Director and managers.

3.6 Data Collection Instruments

The study will adopt a mixture of qualitative and quantitative methods. Qualitative data will be collected using interview guides. The use of interview guides to enable data collection on feelings, beliefs and attitudes regarding the subject under study. While quantitative data will be collected using a questionnaire.

3.7.1 Questionnaire

Ahuja (2009) defines a questionnaire as a structured set of questions that are given to people in order to collect facts or opinions about something. The researcher will use closed-ended questions because they are easy and quick to answer, and they are helpful in improving consistence of the responses. The questionnaires will be administered to the staff of URA.

3.7.2 Interviews

According to Ahuja (2009), an interview is a two-person conversation initiated by the interviewer for the specific purpose of obtaining research-related information. It focuses on the content specified by the research objectives, description and explanation. An interview guide, which is referred to as a set of questions for which answers, will be used by a researcher to interview respondents. The use of this tool gives the researcher control over the line of questioning hence time saving.   Interviews will be conducted in a quiet place without noise with the top management officials of URA. The purpose of the interview explained, including reassuring respondents of confidentiality of the information provided.

3.8 Data collection procedure

The researcher will obtain a recommendation and an introductory letter from Uganda management institute, after which she will seek permission from Human resource management of URA for interviews.

3.9 Data Quality Control of the Instrument

3.9.1 Reliability of the questionnaire

According Bruton (2000), reliability is established by testing the instruments for the reliability of values (Cronbatch, 1946) and analysis for Alpha values for each variable under study. Sekaran (2001), notes that Alpha values for each variable under study should not be less than 0.6 for the statements in the instruments to be deemed reliable. To ensure that all variables are subjected to this test, the researcher will use the internal consistency method that provides a unique estimate of reliability for the given test administrations. The most popular internal consistency reliability estimate has been given by Cronbach’s Alpha.

3.9.2 Validity of the questionnaire

After developing the questionnaire, the researcher will contact the supervisor and three other experts to ensure that the tools to collect the required data is valid. Hence, the researcher will ensure validity of the instruments by using expert judgment method suggested by Gay (1996). Thereafter, research instruments will be refined based on expert advice. The following formula will be used to test the validity index.   CVI= No. of items regarded relevant by judges,  Total No. of items judged, CVI = Content Validity Index.

3.9.3 validity of interview guide

The interview guides will be reviewed by the lecturers and supervisor to find out if the actually represent the interest of the study. After the review the new questions will be incorporated while those demeaned unfit will be dropped.

3.10 Data Collection Procedures

A letter of introduction will be got from Uganda Management Institute and then it will be delivered to the top management of Uganda Revenue authority. When permission is granted the researcher will ensure that the consent of the respondents is got.

3.11 Data Processing and Analysis

This section covers methods of data processing and analysis.

3.11.1 Data Processing

In order to ascertain the accuracy, consistency, uniformity, proper arrangement and completion of the data, the researcher will use the computer for data entry, editing and data coding. The computer will be used because it increases the speed of computation and data processing and handles huge volumes of data, which is not possible manually. It facilitates copying, editing, saving and retrieving the data easier and validation, checking and correction of data.

3.11.2 Data analysis

Data collected will be checked, coded and edited for completeness and accuracy. Data will be analyzed using the statistical package for social scientists (SPSS) version 21.0 for Windows. It will be analysed using frequency distribution tables, excel spread sheets and Spearman correlation to determine the degree of relationship between variables. Qualitative data will also be used to analyze descriptive statistics using opinions and attitudes of respondents and developing themes.

3.12 Ethical consideration

Ethical considerations will be taken care of by, first seeking authorization from the Uganda management Institute and other relevant authorities. Questionnaires will be structured in such a way that there is no mention of the interviewee’s name which ensures strict confidentiality in data.

Further, responses will be optional and respondents will not be given any inducements to participate in the study. Ethical considerations will be taken care of by the researcher by briefing the respondents on the purpose of the research, their relevance in the research process, and expectations from them as explained by Lloyd Bevan (2009).

Informed consent will be ascertained from informants/respondents. They will be promised confidentiality about the information they provide. The researcher will explain to the respondents the purpose of the study as purely academic and that the information obtained will be treated with utmost confidentiality. If anybody other than the University authority is to have access the information, the researcher would first seek the consent of the respondents.

3.11Limitations of the Study

The researcher is likely to meet the following challenges while in the field;

• Due to the busy nature of the employees in URA, they may not have enough time to give a good feedback and this may compromise the quality of the study.
• The respondents in the study may fear to give information to the study since they feel they can be fired or the information may be misused for other purposes something they feel can lead to some challenges to them, however this will be solved by ensuring confidentiality of the data of the respondents.

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Proceed and develop the data collection instruments as well