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

Rocky J. Dwyer,Kessington Okundaye,Susan K. Fan

doi:10.1108/jefas-08-2018-0086

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.

Highlights

The implementation of information and communication technology (ICT) in small-to medium-sized enterprises (SMEs) is vital for the socioeconomic development of an economy, especially in developing countries (Rahayu and Day, 2017; Yunis et al, 2017)
SMEs are an integral part of innovation and growth in a dynamic economy; SMEs have a vital role in job creation (Napitupulu et al.,2018; Niebel, 2018; Zafar and Mustafa, 2017)
The most appropriate framework for analyzing the business strategies of SME leaders toward making decisions on ICT adoption was technology acceptance model (TAM), which was appropriate for exploring the effect of different factors, including culture, on the perceived usefulness and perceived ease of use of ICT, among SME leaders in Lagos, Nigeria

Summary

Introduction

The implementation of information and communication technology (ICT) in small-to medium-sized enterprises (SMEs) is vital for the socioeconomic development of an economy, especially in developing countries (Rahayu and Day, 2017; Yunis et al, 2017). SMEs are an integral part of innovation and growth in a dynamic economy; SMEs have a vital role in job creation (Napitupulu et al.,2018; Niebel, 2018; Zafar and Mustafa, 2017). In developed countries, such as the USA and United Kingdom, SMEs account for over 99 per cent of employers and contribute over 50 per cent to the country’s gross domestic product (GDP); (Gbandi and Amissah, 2014; Tobora, 2014). In Nigeria, SMEs conduct 90 per cent of business in the country but contribute less than 10 per cent to the GDP (Gbandi and Amissah, 2014)

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Conclusion