The Impact of Communication Technologies on the Performance of SMEs in a Developing Economy: Nigeria as a Case Study

Abstract

Informed by Social Shaping Theory (modified), this paper presents a research that examines the impact of communication technologies (mobile telephony, personal computer and internet facilities) on the performance of small and medium businesses in Lagos state, Nigeria. Results indicate that SMEs operating in different socio‐economic settings present varying performance results from the use of communication technology tools. The study was undertaken through a firm survey and also a number of semi‐structured interviews with purposively selected 100 SMEs operating in both the affluent and disadvantaged districts of the city. Using basic descriptive statistics and thematic analytical techniques for the survey and interview data respectively, major findings suggest that: 1) as communication technologies positively impact the performance of SMEs, existing socio‐economic factors within the districts where the firms operate also influence the choice of communications technology and significantly shape its impact on business performance; 2) class differences with respect to income and education disparity, as well as communication habits in the affluent and disadvantaged communities account for different outcomes in the business performance of firms; 3) the Impact of communication technologies on the local economy seems to be more prominent and significant in regard to the performance of firms operating in the affluent districts compared to the performance of firms operating in disadvantaged districts

The Search for Determinants of Kosovan Small and Medium Enterprises Performance

“…In fact, the Internet is more important rather than the number of computers in the firm. Our results are not in line with findings ofRufai (2014), suggesting that the adoption of computer signalled an improvement in business performance of studied firms in terms of operational cost reduction, sale/customer increase, business expansion, increase profitability, improve service quality/delivery, fraud reduction and general operational and administrative efficiency. Similar to our resultsNotta & Vlachvei (2013), indicate the low web-site adoption rate for the surveyed SMEs, as well as that the websites are mainly informative about the general characteristics of the firm such as location and contact.…”

Influence of entrepreneurship education, technology and globalisation on performance of SMEs in Nigeria

“…SMEs now invest significant amounts of financial resources in technology to strengthen their competitive positions (Ghobakhloo et al, 2012). Rufai (2014) also found that usage technology by SMEs positively impacts business performance in terms of cost reduction, enhanced productivity as well as improved revenue and profitability.…”

“…Technology is an important factor for SMEs' product mobility within and across national boundaries. Studies such as Oluwatayo (2014) and Rufai (2014) have found that use of technology by SMEs positively impacts business performance in terms of cost reduction, enhanced productivity as well as improved revenue and profitability.…”

The Use of Participatory Approaches in Developing ICT‐Based Systems for Disseminating Agricultural Knowledge and Information for Farmers in Developing Countries: The Case of Tanzania

“…The quantitative and qualitative paradigm elements were also adopted in the study. This was adopted because of allowing a mixed research method strategy (Rufai, 2014). The mixed research method strategy was adopted for the purpose of: enabling the possibility for findings collaboration through triangulation; allowing the potential weaknesses of methods associated with each strategy to be offset to each other; allowing in-depth, comprehensive and broad investigation as well as better understanding of the phenomenon through research completeness (Rufai, 2014).…”

“…This was adopted because of allowing a mixed research method strategy (Rufai, 2014). The mixed research method strategy was adopted for the purpose of: enabling the possibility for findings collaboration through triangulation; allowing the potential weaknesses of methods associated with each strategy to be offset to each other; allowing in-depth, comprehensive and broad investigation as well as better understanding of the phenomenon through research completeness (Rufai, 2014). Moreover, the aim was also to enhance the research credibility and the likelihood of results/findings integrity as well as eliciting respondent's diversity from the sample (Bryman, 2008).…”