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

Authors

  • Kessington Okundaye Rekun Technologies, Pasadena, California, USA
  • Susan K. Fan College of Management and Technology, Walden University, Minneapolis, Minnesota, USA
  • Rocky J. Dwyer College of Management and Technology, Walden University, Minneapolis, Minnesota, USA

Keywords:

Innovation, Business growth, ICT adoption rates, ICT penetration, Information and communication technology adaptation

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.

Doi: https://doi.org/10.1108/JEFAS-08-2018-0086

Downloads

Download data is not yet available.

References

Abdullah, F. and Ward, R. (2016), “Developing a general extended technology acceptance model for e-learning (GETAMEL) by analysing commonly used external factors”, Computers in Human Behavior, Vol. 56, pp. 238-256, doi: 10.1016/j.chb.2015.11.036.

Abdullahi, M., Ghazali, P., Awang, Z., Tahir, I. and Ali, N. (2015), “The effect of finance, infrastructure and training on the performance of small and medium scale enterprises (SMEs) in Nigeria”, International Journal of Business and Technopreneurship, Vol. 5 No. 3, pp. 421-452, available at: https://ijbt.unimap.edu.my/index.php?option=com_content&view=article&id=78&Itemid=89 (accessed 24 June 2018).

Agwu, E.M. and Murray, P.J. (2015), “Empirical study of barriers to electronic commerce uptake by SMEs in developing economies”, International Journal of Innovation in the Digital Economy, Vol. 6 No. 2, pp. 1-19, doi: 10.4018/ijide.2015040101.

Analoui, B.D., Doloriert, C.H. and Sambrook, S. (2013), “Leadership and knowledge management in UK ICT organisations”, Journal of Management Development, Vol. 32 No. 1, pp. 4-17, doi: 10.1108/02621711311286892.

Asongu, S.A. and Le, S. (2017), “Technological forecasting and social change enhancing ICT for inclusive human development in Sub-Saharan Africa”, Technological Forecasting and Social Change, Vol. 118 No. 5, pp. 44-54, doi: 10.1016/j.techfore.2017.01.026.

Awiagah, R., Kang, J. and Lim, J.I. (2015), “Factors affecting e-commerce adoption among SMEs in Ghana”, Information Development, Vol. 32 No. 4, pp. 815-836, doi: 10.1177/0266666915571427.

Charoensukmongkol, P. and Moqbel, M. (2014), “Does investment in ICT curb or create more corruption? A cross-country analysis”, Public Organization Review, Vol. 14 No. 1, pp. 51-63, doi:10.1007/s11115-012-0205-8.

Deprez, J. and Euwema, M. (2017), “You can’t always get what you want? Leadership expectations of intrapreneurs”, Journal of Managerial Psychology, Vol. 32 No. 6, pp. 430-444, doi: 10.1108/JMP-04-2016-0107.

Elbeltagi, I., Hamad, H., Moizer, J. and Abou-Shouk, M.A. (2016), “Levels of business to business e-commerce adoption and competitive advantage in small and medium-sized enterprises: a comparison study between Egypt and the United States”, Journal of Global Information Technology Management, Vol. 19 No. 1, pp. 6-25, doi: 10.1080/1097198X.2016.1134169.

Gbandi, E.C. and Amissah, G. (2014), “Financing options for small and medium enterprises (SMEs) in Nigeria”, European Scientific Journal, Vol. 10 No. 1, pp. 327-340, available at: http://eujournal.org/index.php/esj (accessed 11 July 2018).

Harness, D., Ranaweera, C., Karjaluoto, H. and Jayawardhena, C. (2018), “The role of negative and positive forms of power in supporting CSR alignment and commitment between large firms and SMEs. Industrial marketing management”, Vol. 69 No. 2 (February), pp. 0-1, doi: 10.1016/j.indmarman.2018.03.006.

Hassan, A.M., Mike, I. and Guyo, W. (2017), “Effect of integrated service approach on service delivery at huduma centres in the public service of Kenya”, European Journal of Business and Social Sciences, Vol. 6 No. 3, pp. 1-12, available at: www.ejbss.com/recent.aspx-/ (accessed 15 July 2018).

Hickman, L. and Akdere, M. (2017), “Effective leadership development in information technology: Building transformational and emergent leaders”, Industrial and Commercial Training, Vol. 50 No. 1, pp. 1-9, doi: 10.1108/ICT-06-2017-0039.

International Telecommunication Union (2014), “Key ICT indicators, 2005-2010”, available at: www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx (accessed 22 March 2018).

Jones, P., Simmons, G., Packham, G., Beynon-Davies, P. and Pickernell, D. (2014), “An exploration of the attitudes and strategic responses of sole-proprietor micro-enterprises in adopting ICT”, International Small Business Journal, Vol. 32 No. 3, pp. 285-306, doi: 10.1177/0266242612461802.

Keller, J. and Von der Gracht, H.A. (2014), “The influence of information and communication technology (ICT) on future foresight processes: results from a delphi survey”, Technological Forecasting and Social Change, Vol. 85, pp. 81-92, doi: 10.1016/j.techfore.2013.07.010.

Lapão, L.V. (2015), “The challenge of benchmarking health systems: is ICT innovation capacity more systemic than organizational dependent?”, Israel Journal of Health Policy Research, Vol. 4 No. 1, pp. 10-13, doi: 10.1186/s13584-015-0036-5.

Leduc, S., Guilbert, L. and Vallery, G. (2015), “Impact of ICTs on leadership practices: representations and actions”, Leadership and Organization Development Journal, Vol. 36 No. 4, pp. 380-395, doi: 10.1108/LODJ-07-2013-0090.

Li, S. (2014), “The impact of information and communication technology on relation-based governance systems”, Information Technology for Development, Vol. 11 No. 2, pp. 105-122, doi: 10.1002/itdj.20010.

Matzler, K., Strobl, A., Stokburger-Sauer, N., Bobovnicky, A. and Bauer, F. (2016), “Brand personality and culture: the role of cultural differences on the impact of Brand personality perceptions on tourists’ visit intentions”, Tourism Management, Vol. 52, pp. 507-520, doi: 10.1016/j.tourman.2015.07.017.

Mazzarol, T., Clark, D.N. and Reboud, S. (2014a), “Strategy in action: case studies of strategy, planning and innovation in Australian SMEs”, Small Enterprise Research, Vol. 21 No. 1, pp. 54-71, doi: 10.1080/13215906.2014.11082076.

Mazzarol, T., Clark, D., Reboud, S., Gough, N. and Olson, P. (2014b), “Perceptions of innovation climate and the influence of others: a multi-country study of SMEs”, International Journal of Innovation Management, Vol. 18 No. 1, pp. 1-24, doi: 10.1142/S1363919614500091.

Mustafa, H.H. (2015), “The role of ICT management to achieve organizational innovation”, International Journal of Organizational Innovation, Vol. 7 No. 4, pp. 48-56, available at: www.ijoi-online.org/ (accessed 27 July 2018).

Napitupulu, D., Syafrullah, M., Rahim, R., Abdullah, D. and Setiawan, M.I. (2018), “Analysis of user readiness toward ICT usage at small medium enterprise in South tangerang”, Journal of Physics: Conference Series, Vol. 1007 No. 1, doi: 10.1088/1742-6596/1007/1/012042.

Niebel, T. (2018), “ICT and economic growth – Comparing developing, emerging and developed countries”, World Development, Vol. 104 No. C, pp. 197-211, doi: 10.1016/j.worlddev.2017.11.024.

Olaoye, F.O. and Adebayo, I.A. (2017), “Empirical evaluation of government cashless policy and accountants workload in selected higher institutions in Ekiti state, Nigeria abstract”, International Journal of Innovative Research and Development, Vol. 6 No. 10, pp. 1-6, available at: www.ijird.com/ (accessed 21 April 2018).

Olise, M.C., Anigbogu, T.U. and Okoli, M.I. (2014), “Determinants of ICT adoption for improved SME’s performance in Anambra”, American International Journal of Contemporary Research, Vol. 4 No. 7, pp. 163-176, available at: www.aijcrnet.com/ (accessed 25 July 2018).

Osubor, V.O. and Chiemeke, S.C. (2015), “The impacts of information culture on e-learning innovation adoption in learning institutions in Nigeria”, African Journal of Computing and ICT, Vol. 8 No. 1, pp. 17-26, available at: www.ajocict.net (accessed 06 July 2018).

Rahayu, R. and Day, J. (2015), “Determinant factors of e-commerce adoption by SMEs in developing country: evidence from Indonesia”, Procedia - Social and Behavioral Sciences, Vol. 195, pp. 142-150, doi: 10.1016/j.sbspro.2015.06.423.

Rahayu, R. and Day, J. (2017), “E-commerce adoption by SMEs in developing countries: evidence from Indonesia”, Eurasian Business Review, Vol. 7 No. 1, pp. 25-41, doi: 10.1007/s40821-016-0044-6.

Schaper, M.T. (2015), “Competing in the online marketplace: contemporary issues for SMEs and their regulators”, Small Enterprise Research, Vol. 22 No. 1, pp. 69-78, doi: 10.1080/13215906.2015.1017075.

Steiner, D. and Mendelovitch, M. (2017), “I’m the same teacher: the attitudes of science and computer literacy teachers regarding integrating ICT in instruction to advance meaningful learning”, Eurasia Journal of Mathematics, Science and Technology Education, Vol. 13 No. 5, pp. 1259-1282, doi: 10.12973/eurasia.2017.00670a.

Talebian, S., Mohammadi, H.M. and Rezvanfar, A. (2014), “Information and communication technology (ICT) in higher education: advantages, disadvantages, conveniences and limitations of applying e-learning to agricultural students in Iran”, Procedia - Social and Behavioral Sciences, Vol. 152, pp. 300-305, doi: 10.1016/j.sbspro.2014.09.199.

Tarutė, A. and Gatautis, R. (2014), “ICT impact on SMEs performance”, Procedia - Social and Behavioral Sciences, Vol. 110, pp. 1218-1225, doi: 10.1016/j.sbspro.2013.12.968.

Thomas, N.K. (2014), “The role of SMEs in employment creation and economic growth in selected countries”, International Journal of Education and Research, Vol. 2 No. 12, pp. 461-472, available at: www.ijern.com/ (accessed 28 July 2018).

Tob-Ogu, A., Kumar, N. and Cullen, J. (2018), “ICT adoption in road freight transport in Nigeria – A case study of the petroleum downstream sector”, Technological Forecasting and Social Change, Vol. 131, pp. 240-252, doi: 10.1016/j.techfore.2017.09.021.

Tobora, O.O. (2014), “Challenges faced by entrepreneurs and the performance of small and medium scale enterprises (SMEs) in Nigeria: an intellectual Capital issue”, International Letters of Social and Humanistic Sciences, Vol. 42, pp. 32-40, doi: 10.18052/www.scipress.com/ILSHS.42.32.

Toft, M.B., Schuitema, G. and Thøgersen, J. (2014), “Responsible technology acceptance: model development and application to consumer acceptance of smart grid technology”, Applied Energy, Vol. 134, pp. 392-400, doi: 10.1016/j.apenergy.2014.08.048.

Tseng, S.M. (2017), “Investigating the moderating effects of organizational culture and leadership style on IT-adoption and knowledge-sharing intention”, Journal of Enterprise Information Management, Vol. 30 No. 4, pp. 583-604, doi: 10.1108/JEIM-04-2016-0081.

Vermeulen, M., Van Acker, F., Kreijns, K. and van Buuren, H. (2014), “Does transformational leadership encourage teachers’ use of digital learning materials?”, Educational Management Administration and Leadership, Vol. 43 No. 6, pp. 1-20, doi: 10.1177/1741143214535749.

Vodanovich, S. and Urquhart, C. (2017), “ICTs and the computerised hijab: women’s experiences of ICT in the UAE”, Electronic Journal of Information Systems in Developing Countries, Vol. 82 No. 1, pp. 1-17, doi: 10.1002/j.1681-4835.2017.tb00608.x.

Wang, K.Y., Hermens, A., Huang, K.P. and Chelliah, J. (2015), “Entrepreneurial orientation and organizational learning on SMEs’ innovation”, International Journal of Organizational Innovation, Vol. 7 No. 4, pp. 71-81, available at: www.ijoi-online.org/ (accessed 29 July 2018).

Wunnava, S. (2015), “Mobile commerce usage: application of theory of reasoned action (TRA) and technology acceptance model (TAM)”, World Journal of Social Sciences, Vol. 5 No. 2, pp. 41-50, available at: www.wbiaus.org/wjss_new.html (accessed 24 July 2018).

Yeh, H. (2015), “Effects of ICT’s innovative applications on Brand image and customer’s purchase intention”, International Journal of Organizational Innovation, Vol. 7 No. 4, pp. 31-48, available at: www.ijoi-online.org/ (accessed 7 May 2018).

Yunis, M., El-Kassar, A. and Tarhini, A. (2017), “Impact of ICT-based innovations on organizational performance: the role of corporate entrepreneurship”, Journal of Enterprise Information Management, Vol. 30 No. 1, pp. 122-141, doi: 10.1108/JEIM-01-2016-0040.

Zafar, A. and Mustafa, S. (2017), “SMEs and its role in economic and socio-economic development of Pakistan”, International Journal of Academic Research in Accounting, Finance and Management Sciences, Vol. 7 No. 4, pp. 195-205, doi: 10.6007/IJARAFMS/v7-i4/3484.

Zhang, X., Ma, X. and Wang, Y. (2014), “How can emerging market small and medium-sized enterprises maximise internationalisation benefits? The moderating effect of organisational flexibility”, International Small Business Journal, Vol. 32 No. 6, pp. 667-692, doi: 10.1177/0266242613503356.

Downloads

Published

2019-06-01

How to Cite

Okundaye, K. ., K. Fan, S. ., & J. Dwyer, R. . (2019). Impact of information and communication technology in Nigerian small-to medium-sized enterprises. Journal of Economics, Finance and Administrative Science, 24(47), 29–46. Retrieved from https://revistas.esan.edu.pe/index.php/jefas/article/view/80