- Format
- Pages
- Chapters
EFFECT OF INFORMATION TECHNOLOGY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN AMAC ABUJA, NIGERIA
EFFECT OF INFORMATION TECHNOLOGY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN AMAC ABUJA, NIGERIA
Abstract
The world is experiencing a new global economic order which is characterized by information and communication technologies for information management. A whole tremendous change is taking place in which the spread of knowledge has given rise to an era of knowledge and information. Hence the purpose of this research is to examine the general characteristics of (SME) Small and Medium Scale Enterprises and explore the effect of information technology on the performance of small and medium enterprises.
The research was executed in Abuja metropolitan area council and a survey research approach of the data collection was used to gather information from 300 respondents while graphs, charts, frequency, percentage, mean and standard were used for descriptive data presentation and data interpreted was done using ANOVA to prove the hypothesis. Based on the results obtained is indicated that about 46.7% of SMEs in Nigeria are in the services sector… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
INTRODUCTION
Background of the Study
Advancement in technology is seen as a core driver of industrialization in many nations of the world; harboring immense growth potentials as well as bringing about efficiency and effectiveness in many operational procedures and processes in both developing and developed nations. Mainly, advancement in Information Technology is among the technological development projected to usher in the fourth industrial revolution; the use of internet facilities are among the core factors revolutionizing the world into a globally digital society (Oduma, Onyema, &Akiti, 2019).
Today, it is believed that the growth achieved in information technology has opened windows of opportunities cum challenges in many economic regions (Nwokike& Chukwuma, 2019). For instance, information technology has introduced ease to the way information, ideas, innovations, and lifestyles are dispersed all around the world. (Oduma, et al. 2019)… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
Advancement in information technology and the corresponding effect in all sectors, particularly on the performance of Small and Medium Enterprises has formed a theme for academic discussion in many works of literature.
Kapurubandara and Lawson (2006) looked at how IT offers promising opportunities that will help to overcome the challenges of a very dynamic business environment while Ion and Andreea, (2008) looked at how IT brings about sustained competitive business advantage for the SMEs.
Kutlu and Özturan, (2009) were concerned with SMEs using IT as a business tool to help maximize cost, build better relationships with customers, and create unique niches through innovations… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
The main objective of the study is anchored on ascertaining the effect of information technology on the performance of Small and Medium Enterprises in AMAC Abuja, Nigeria. Specifically, this study will try to;
- To examine the extent to which Broadband Internet has contributed to the overall business performance of Small and Medium Enterprises in Abuja Municipal Area council… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
This study will be of considerable relevance since it intends to investigate and provide comparative answers to the extent IT variables impact on SME performances in AMAC Abuja. The conclusions that will be drawn from detailed and investigative analysis will be useful to the Nigerian government, policymakers, operators of SMEs in Nigeria and the society at large… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
Knowledge experts have taken a keen look at the concept of Information technology (IT) from different perspectives reaching varying submissions, however, a more generic definition as adopted by Oliver & Chapman (1990) defined “IT as the technology that supports activities involving the creation, storage, manipulation and communication of information, together with their related methods and management applications”.
Information is simply data that has been processed into a particular format that makes sense to the recipient providing actual or perceived value to drive the process of making decisions and taking corresponding actions.
Nweke (2001) refers to IT as an introduction and integration of computers, electronics, satellite technologies, and other technical communication gadgets in the generation, processing, transmitting, and management of information in the form it is needed for improved effectiveness, efficiency, and quality of productive ventures… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
Broadband Internet refers to high-speed Internet access that is always on and faster than the traditional dial-up access says Chinecherem, et al (2015). Broadband includes several high-speed transmission technologies such as Digital Subscriber Line (DSL), Cable Modem, Fiber Optics, Wireless, Satellite and Broadband over Power lines (BPL). The broadband technology you choose will depend on a number of factors and these may include whether you are located in an urban or rural area.
How broadband Internet access is packaged with other services (such as voice telephone and home entertainment), pricing models, and ease of availability are other critical influencing factors that drive the motivation behind the use of this technology. (American Federal Communication Commission)… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
Source: Nigerian National Broadband Plan 2008-2013
The above data clearly indicates a significant gap between telephony and broadband internet in Nigeria which in other words could have many more significant impacts in terms of potential… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
Davis et al (1989) first developed the Technology Acceptance Model (TAM) which has a strong base on the Theory of Reasoned Action (Ajzen and Fishbein, 1980). Bradley (2009) went on to define the two most important variables used as perceived usefulness (PU) and perceived ease of use (PEOU) to determine user acceptance of a given technology. The behavioral intent is what brings about the desired action that leads to the actual use of the system.
Louho, Kallioja, and Oittinen (2006) further went on to simplify technology acceptance (TAM) as to how people accept and adopt some technology (Information Technology) for use based on perceived usefulness and perceived ease of use to determine the expected outcome (Performance).
Dillon (2001) explained User acceptance of technology as the demonstrable willingness within a user group to employ IT for the tasks it is designed to support. Therefore acceptance is a function of the user involvement in the use of technology. As shown in Fig2.2.1 below, the model tends to show the motivational processes that balance the system characteristics and user behavior;
Fig2.2.1Technology Acceptance model Conceptual framework
Due to factors of globalization, the business environment becomes increasingly competitive with firms looking towards the adoption of information technology to manage and improve their performance. To gain performance efficiency, information delivery must be timely and accurate. Yet, firms (SMSs) may invest in technology only to find that their users are not willing to accept and use the new technology. Such user action will rather negate possible benefits that may be gained through the adoption of the technology… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
RESEARCH METHODOLOGY
Research Design
The research design proposed for this study is the survey research design. The reason for this research design is that it allows the researcher to directly obtain the data needed for the analysis from the respondents/participants (relevant people, people who are in the right position to provide such information). The layout of the descriptive survey also offers a multiplicity of responses, viewpoints, norms, attitudes, and beliefs on the subject, which will help to generalize the findings.
One significant advantage of using a descriptive model is that it enables the researcher to quantitatively calculate the variables of interest in the sample and check their effects using suitable statistical tools while allowing the researcher to as far as the data are concerned (Lambert & Lambert, 2012). The different categories of SME’s in AMAC Abuja will share their direct business performance behavior in relation to the effect of IT.
The data for this study will be obtained through the primary approach where the instrument of questionnaire will be employed to source data from the study phenomena and Secondary sources of data… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
RESEARCH FINDINGS AND DISCUSSION
This chapter is devoted to the presentation of analyzed field data and the discussion of findings. The Statistical Package for Social Science (S.P.S.S) enabled the researcher make relevant interpretations and discussions about the phenomenon under study in relation to the objectives. The main focus of the study is to ascertaining the effect of information technology on the performance of Small and Medium Enterprises in AMAC Abuja.
To aid in the clarity of the presentation, this chapter is divided into two main sections. The first section presents the analysis and interpretation of the findings, whilst the second section details the discussions of the relevant findings from the study… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
SMEs were selected randomly from the survey area. The analysis revealed that 46.7 % were in the services sector, 6.7 % of the respondents each from health care and retail which is 10 % of the total respondents were from clothing, manufacturing and hardware. Graphical representation of the various sectors of SMEs that were sampled is shown in figure 4.
Figure 3. SMEs by Sectors distribution
Source: Field Data, February 2020
Table 4.1 below indicates the age range of respondents. Out of the total number of respondents, 10 % were aged less than 25years 43.3 % were aged between 25 and 35years, 23.3 % of respondents were aged between 36 and 45years, 16.7 % were aged between 46 and 55years and 6.7 % were aged 55 years and above… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
SUMMARY, CONCLUSION, AND RECOMMENDATION
Summary
From the findings of the study, most of the SMEs surveyed indicated they are using information technology systems against their counterparts who are not using information technology systems. The survey also revealed that all the SMEs surveyed are using the internet… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
SMEs play an important role in the global economy: they contribute to the GDP and reduction of unemployment, especially in developing countries. Many governments around the world are pushing for SMEs to adopt IT in order for them to survive in the knowledge economy. The Nigeria Government is no exception. The need for SMEs to adopt IT is driven by governments, globalization, innovation, flexibility and competitive advantage… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
In summary, the recommendations for SMEs to overcome barriers and improve the implementation of IT in their businesses for growth and development are as follows:
SMEs should invest in educating their staff and management about IT and its benefits. As training cost is known to be of the impediments towards the development of IT skills, this will help these SMEs acquire these skills and use them in their work.
Training agencies responsible for providing IT training to SME owners must understand not only how this group of adults learns, but also what the obstacles are that they usually face in learning technology-related subjects… (Scroll down for the link to get the Complete Chapter One to Five Project Material)
REFERENCES
Abdulmalik, N. (2017). Role of technology incubation on entrepreneurship development in Nigeria: a case study of Minna technology incubation center. International Journal of Advanced Studies in Economics and Public Sector Management, 5 (3), 2354-4228.
Abeh, Ossai. (2017). The Problems and Prospects of Small and Medium Scale Enterprises (SMEs) Growth and Development in Nigeria: A Study of Selected SMEs in Delta State. International Journal of Scientific Research in Education, 10(3) (Online). Available at http://www.ijsre.com (Accessed: 3 December 2018).
Adewoye JO (2007): Impact of information technology investment on banking operation. International Journal of International Business 1(4):70-78.
Agwu ME, (2018) Relevance of Information Technology in the Effective Management of Selected SMEs in Lagos State Nigeria. Academy of Strategic Management Journal Volume 17, Issue 1, 2018 1 1939-6104-17-1-174.
Akande, O.O. (2015). Does Information Technology (IT) Influence Entrepreneurial operations Efficiency: An Empirical Investigation of the Nigerian Small and Medium Businesses SMBs. OSR Journal ofBusiness and Management, 17( 4) 19-24
AkandeOlusola&LadokeAkintola (2013) An Appraisal of the Impact of Information Technology (IT) on Nigeria Small and Medium Enterprises (SMEs) Performance. International Journal of Academic Research in Management (IJARM) Vol. 2, No. 4, 2013
AlGhamdi, R, J. Nguyen, A. Nguyen & S. Drew (2012), Factors Influencing e-commerce adoption by retailers in Saudi Arabia: a Quantitative Analysis, International Journal of Electronic Commerce Studies Vol.3, No.1, pp.83-100, 2012.\
Augustine, O. J., &Okon, J. U. (2018). Effects of Technology Transfer from Developed Nations and Developing Economy: The Nigeria Experience. American Journal of Business, Economics and Management, 6 (3), 42-48. (Information Technology)
Babandi I. G. (2017). Critical Challenges Facing Small Business Enterprises in Nigeria: A Literature Review.International Journal of Scientific &Engineering Research 8 (8) (online). Available at https://www.researchgate.net (Accessed: 4 December 2018). (Information Technology)
Bolanle, O. O., Matthew, O. I., Timothy, O. O., Billy, A. O., & Oluseye, O. J. (2013). Technology transfer process in Nigeria: from R&D outputs to entrepreneurship. International Journal of Technology Transfer and Commercialisation, 12 (4), 16-28. (Information Technology)
Charles, A. & Frank, S. (2012). The impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi Metropolis, Ghana, West Africa.European Journal of Business and Management, 4(20) 78-91. (Information Technology)
Dasgupta S, Paul R, Fuloria S (2011) Factors affecting behavioral intentions towards mobile banking usage: Empirical evidence from India, Romanian Journal of Marketing, 3(1): 6-28. (Information Technology)
Jackson, K. M. &Josphat K. K. (2016). Assessment of Information Communication Technology Adoption for Performance of Selected Small and Medium Enterprises in Nairobi County, Kenya. International Journal of Scientific Research and Innovative. (Information Technology)
(Scroll down for the link to get the Complete Chapter One to Five Project Material)
