Abstract

The firm’s effective alignment of Information Communication Technology (ICT) capabilities with the SME’s business process to achieve agile communication strategies will distinguish profitable and failing firms in this global market milieu. The paper examined SMEs’ communication strategies in South Africa and Nigeria by evaluating their ability to align business and IT to promote innovation and competitive edge in their operations. Quantitative data from 230 SMEs in Nigeria and South Africa were presented. The findings indicated that the business manager’s knowledge of IT understanding is limited (= .29), the effectiveness of IT and business liaison and cooperation (= .30), and the dynamic of IT-based decision-making (= .33), and the SME’s knowledge sharing experiences through organization learning (= –.07). These findings showed a lack of communication effectiveness due to the inability to align ICT capabilities with the SME’s communications strategies. Similarly, an inverse correlation between communication and ICT infrastructure (–.26); between communication and skill (–.32); between communication and business and IT governance (–.71); between communication and ICT value that the SMEs derived from their use of information communication technology (–.78) due to lack of business and IT alignment. The paper recommends that SMEs must not rely on the acquisition of ICT infrastructure but must ensure its integration with their business processes. AcknowledgmentThe financial assistance of the National Institute for the Humanities and Social Sciences- Council for the Development of Social Science Research in Africa (NIHSS-CODESRIA) towards this research is hereby acknowledged. Opinions expressed and conclusions are those of the author and are not necessarily to be attributed to the NIHSS- CODESRIA.

Highlights

  • The impact of Small and Medium Enterprises (SMEs) on continental economic sustainability cannot be overemphasized

  • As SMEs are vital to any nation’s economic sustainability, effective communication practices are critical to driving business processes (BP), innovation, and value

  • Other studies concerning the SMEs in Nigeria and South Africa did not examine their communications in the context of the business and IT alignment maturity

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Summary

INTRODUCTION

The impact of Small and Medium Enterprises (SMEs) on continental economic sustainability cannot be overemphasized. As SMEs are vital to any nation’s economic sustainability, effective communication practices are critical to driving business processes (BP), innovation, and value. One of the ways to limit the impact of the substandard and high cost of ICT adoption is to ensure that the SME’s IT is aligned with its business processes (BP) because useful communication strategies are as crucial to the SME’s performance, agility, and productivity, as much as the SMEs is vital to any nation’s economic growth. Other studies concerning the SMEs in Nigeria and South Africa did not examine their communications in the context of the business and IT alignment maturity. Notwithstanding, for SMEs to operate ciently and critical knowledge are important for robust and agile African continental business- the marketing and visibility of their products and es, they must use internal communication as a services. 15% of these businesses were categorized as SMEs (DTI, 2008 p. xxviii), representing

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