Micro and Small Enterprises (MSEs) are facing tremendous challenges and threats to survive in a competitive environment. As a matter of fact, MSEs are faced with the threat of failure with past statistics indicating that three out five fail within the first few months. In spite of this fact, automobile mechanics in this informal sector have been slow in adopting modern technology despite the advantages that are attributed to new innovations. This study aimed to determine factors that influence technology adoption among automobile mechanics in micro and small enterprises in Nakuru town; Kenya. One of the specific objectives of the study was to establish the role of compatibility in the adoption of technology. The research used a descriptive cross sectional survey design and employed both probability and non-probability sampling techniques to collect quantitative and qualitative data. Applying the Binary logistic regression analysis and using SPSS to analyze, the study found that, adoption of various modern automobile technologies are influenced; among other factors, the perceived attitude in terms of compatibility of a particular innovation. However, it was revealed that although a larger proportion of the innovations are compatible, adoption to the same is significantly quite low. The study recommended that the government should emphasize and create an innovation awareness system and invest in appropriate technology by way of developing relevant training curriculum for the mechanics based on industry and environmental needs. This study is significant as its findings, if implemented; can jump-start the informal mechanics towards achieving quality, competitiveness and both human and environmental safety.
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