Information Technology Competence and Innovation in Small and Medium Enterprises

Abstract

The increasingly competitive environment occasioned by advances in technology, social and economic changes demands that firms embrace innovation as a strategy. Innovation plays a critical role in the survival and growth of any business. International research shows clear evidence of the benefits of adopting innovation practices. For over the years, Nigeria has faced socio-economic hiccups characterized by poor economic performance, slow industry growth, high unemployment rate, increased poverty, poor service delivery by public entities, inter alia. As such, Small and Medium Enterprises (SMEs) are regarded as key players in the economy and their significance is demonstrated by the government’s support through formulation of policies with agencies specifically for SMEs. However, SMEs face difficulties to remain competitive in the market. Information Technology (IT) which plays a pivotal role in innovation, provides SMEs a better chance of surviving in the competitive market of the 21st century. The role of IT is significant, and its competence is considered as a main component in an organization to improve performance. This paper attempts to explicitly connect IT competence and innovation in SMEs in Nigeria.