The Concept and Application of ICT on SMEs performance in Nigeria: Limitation and Challenges

Abstract

Small and Medium Enterprises (SMEs) play a vital role in growing and building developing nations' national economy. This study investigates a deep understanding of the influence of Information Communication Technology (ICT) on SMEs' performance in Nigeria. The study found out that most SME owners engage in local business practices in nature of the operation, and marketing strategies are limited within the country. Hence, this is a growing concern, the need to broaden the field of doing business through global integration with ICT aid, which would improve the country's economic growth at large. Based on the literature reviewed, this research work helps to identify the underlying causes, limited ICT readiness, its effectiveness and the need for ICT implementation into business processes, and the knowledge of its potential benefit. Therefore, this paper examines the role of ICT in small businesses' performance; this is estimated to enhance firm productivity and increase profitability, improving overall SMEs’ performance. The study recommends that provision be made for more ICT training facilities, and SMEs need to embrace information and communication technology in terms of resources, networks, and consumer skills. Entrepreneurs are to be enlightened and educated on how ICT can be used to boost operating efficiency. The government should create an enabling environment by offering ICT infrastructure that will promote its growth and implementation in SMEs. This study's data relied on secondary data and current research on SMEs worldwide, focusing on Nigeria.
 Keywords: Small and Medium Enterprises, Information Communication Technology, Limitation, Challenges

Digital Capability and Performance of Micro, Small, and Medium-Scale Enterprises: A Review

“…For instance, a study on digital infrastructure and the performance of MSMEs carried out by Cueto et al (2022) and Kawira (2021); established that social media platforms, the internet, and mobile phones increased the performance of the MSMEs. In contrast, Onileowo and Fasiku (2021) found that communication technologies had an insignificant effect on performance.…”

“…Moreover, investments in digital infrastructures promote improved performance of MSMEs. This argument is potentially linked to many propositions by Cueto et al (2022) and Onileowo and Fasiku (2021). The adoption of ICT has the potential to improve the performance of MSMEs, but more efforts should be made to reduce the limitations and challenges associated with ICT adoption.…”

“…Digital capability and performance of micro, small, and medium-scale enterprises (MSMEs) can be enhanced by using information and communication technology (ICT). The limitations and challenges of ICT adoption on MSMEs' performance include inadequate access to ICT resources, lack of technical knowledge, and poor government policies (Onileowo & Fasiku, 2021). A study by Cueto et al (2022) on the role of information infrastructure on MSMEs performance in Philippians found that the presence of digital infrastructures, such as internet access, computer hardware, and software, are important factors that can affect the performance of micro, small, and medium-scale enterprises (MSMEs).…”

“…A study by Cueto et al (2022) on the role of information infrastructure on MSMEs performance in Philippians found that the presence of digital infrastructures, such as internet access, computer hardware, and software, are important factors that can affect the performance of micro, small, and medium-scale enterprises (MSMEs). Onileowo and Fasiku (2021) explored the adoption of information communication technology on the performance of micro, small, and medium enterprises in Nigeria. They established that information communication technologies had an insignificant effect on the performance of the MSMEs.…”

“…Cueto et al (2022) and Kawira (2021) established that social media platforms, the internet, and mobile phones contribute to the performance of MSMEs. On the contrary, Onileowo and Fasiku (2021) indicated that communication technologies do not influence the performance of MSMEs. Kimani (2017) argues that for organizations to manage digital capabilities effectively, they must develop organizational competencies to manage business processes.…”