Impact of information and communication technology in Nigerian small-to medium-sized enterprises

Abstract

Purpose The purpose of this (qualitative, multiple-case) study is to determine how small-to medium-sized enterprise (SME) leaders in Nigeria use information and communication technology (ICT) adoption as a business strategy to increase profitability and compete globally. Design/methodology/approach The participants for this study consisted of executive-level SME leaders who had the authority to approve ICT implementation within their respective organizations. Individual interviews were undertaken with participants to gain an understanding of their experience of determining the merits of and implementing ICT. The technology acceptance model, which specifies the relationship between perceived usefulness, perceived ease of use, attitude toward computer use and intention to use technology, was applied as a framework to explain the Nigerian SME’s ICT adoption strategies. Findings Four major themes emerged from the data analysis: ICT adoption factors, ICT roles and benefits, role of government and SME success factors. The findings of this study may help SME leaders and government leaders address many of the factors inhibiting the adoption of ICT in SMEs in Nigeria. Practical implications This study may ensure that SMEs are successful and able to create jobs, which in turn may help to promote socioeconomic development through adoption of ICT. Originality/value The findings from this study contribute to the knowledge base regarding factors that affect ICT adoption by SME leaders as a business strategy to increase profitability and compete globally, particularly within SMEs in Lagos, Nigeria. It further addressed the gap in existing literature regarding other factors such as the influence of culture on ICT adoption, cost of ICT implementation, available ICT skills, infrastructure and ICT knowledge gap as the primary impeding factors of ICT adoption in Nigerian SMEs.

Critical factors influencing the adoption of digital marketing devices by service-oriented micro-businesses in Nigeria: A thematic analysis approach

“…From the analysis, micro-businesses face pressure to become commercially viable and sustainable. However, because of the economic hardship, the DMD adoption may even be much more difficult though these applications may be relatively cheap (Okundaye et al, 2019). While several micro-businesses have engaged in DMD adoption, it was noted that DMD would be of utmost value if it is of high performance, efficient and accomplishes much without complexity.…”

“…Also, regardless of the advancements of digital marketingrelated devices in SMEs in developed nations, the rate of adoption by SMEs in developing countries is relatively low (Okundaye et al, 2019;Napitupulu et al, 2018;Yunis et al, 2017;Hong et al, 2018). For example, in the US and the UK, SMEs contribute more than 90 per cent of employment and 50 per cent of the countries gross domestic product (GDP), while in developing countries like Nigeria, SMEs own over 90 per cent of the businesses in the country but contribute <10 per cent of the GDP (Gbandi and Amissah, 2014;Tobora, 2014;Okundaye et al, 2019), while 90 per cent of businesses in Ghana are SMEs and account for about 70 per cent of Ghana's GDP. The slow adoption rate of these devices in most African countries particularly in Nigeria has hindered the speed of economic development (Jones et al, 2014;Tob-Ogu et al, 2018;Okundaye et al, 2019;Rahayu and Day, 2017).…”

“…For example, in the US and the UK, SMEs contribute more than 90 per cent of employment and 50 per cent of the countries gross domestic product (GDP), while in developing countries like Nigeria, SMEs own over 90 per cent of the businesses in the country but contribute <10 per cent of the GDP (Gbandi and Amissah, 2014;Tobora, 2014;Okundaye et al, 2019), while 90 per cent of businesses in Ghana are SMEs and account for about 70 per cent of Ghana's GDP. The slow adoption rate of these devices in most African countries particularly in Nigeria has hindered the speed of economic development (Jones et al, 2014;Tob-Ogu et al, 2018;Okundaye et al, 2019;Rahayu and Day, 2017). Similarly, Okundaye et al (2019) note that the rate of penetration of digital technologies between the developing countries and the western world is enormous.…”

“…The slow adoption rate of these devices in most African countries particularly in Nigeria has hindered the speed of economic development (Jones et al, 2014;Tob-Ogu et al, 2018;Okundaye et al, 2019;Rahayu and Day, 2017). Similarly, Okundaye et al (2019) note that the rate of penetration of digital technologies between the developing countries and the western world is enormous. Western countries have a high internet penetration rate of 78.3 per cent compared to 32.4 per cent for developing nations, while the per cent of the household that own computer in a developing country is 27.6 per cent compared to 75.5 per cent in the western world (Okundaye et al, 2018).…”

“…Western countries have a high internet penetration rate of 78.3 per cent compared to 32.4 per cent for developing nations, while the per cent of the household that own computer in a developing country is 27.6 per cent compared to 75.5 per cent in the western world (Okundaye et al, 2018). SMEs in developing countries have witnessed a slow and low adoption of digital devices compared to western world (Zafar and Mustafa, 2017;Okundaye et al, 2019), and the nature of this problem is becoming even more and more challenging for SMEs and require further investigations (Tob-Ogu et al, 2018). Therefore, this research remains relevant given that small businesses have limited knowledge of these new devices and any effort in understanding how these devices can be fully utilised would not only improve their understanding but make them proactive and strategic (Benamati and Lederer, 2001;Gutierrez et al, 2015;Samad et al, 2018;Agostini and Nosella, 2020;Hong et al, 2018) in taking decisions.…”