Analysis Of The Effect Of Ict Investment On Small And Medium Enterprises’ Sales Growth In South-Western Nigeria
Akanbi, Taibat Adenike
Department of Management and Accounting, Ladoke Akintola University of Technology, P. M. B. 4000, Ogbomoso, Oyo Statement Nigeria
Adewoye, Jonathan Oyerinde
Department of Management and Accounting, Ladoke Akintola University of Technology, P. M. B. 4000, Ogbomoso, Oyo Statement Nigeria
Keywords: ICT INVESTMENT, ICT STRATEGIC ALIGNMENT, PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES, SOUTH WESTERN NIGERIA
Abstract
This study assessed ICT investment, ICT strategic alignment, and performance of small and medium enterprises in southwestern Nigeria. A total number of 3,520 SMEs were selected with a three-stage sampling procedure across the study area. Both primary and secondary sources of data were employed for the study. Frequency distribution tables and rigorous analysis were used in analyzing both positive and negative factors influencing ICT investment. Multiple regression analysis was used to analyze the hypothesis of the study. The result of the study revealed that there are both positive and negative factors that influence ICT investments by SMEs. Moreso, complementary factors, SMEs capital, ICT perception, business strategy, SMEs type, and ICT intensity all have high significant (p≤ 0.01) effect on ICT investment and SMEs performance. Years of experience (YREXP) has a negative effect on ICT investment and SME performance. The coefficient of the result is – 5.911 and R2 = 0.866 which means that 86.6% performance of small-medium enterprises in South Western Nigeria is being explained by the explanatory variables. Recommendations were made that SMEs’ owners should strategically align complementary factors such as (SMEs type, SMEs size, SMEs capital, SMEs ICT perception and business strategy) with ICT investment so that it can have a positive effect on their performance