The Relevance of Information Technology (IT) to the Management of Small and Medium Scale Enterprises in Nigeria
CHAPTER ONE
OBJECTIVES OF THE STUDY
The broad objective of this study is to examine the relevance of information technology to the management of Small and Medium Scale Enterprises (SMEs) in Nigeria. The specific objectives of the study are as follows:
- To evaluate the role of Information Technology in the activities and operations of Small and Medium Scale Enterprises (SMEs);
- To appraise the impact of Information Technology on the managerial practice of SMEs;
- To investigate the effects of Information Technology on the performance of SMEs.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The knowledge age, information revolution, globalization, technological innovation and hyper competition that characterized the modern economic/business environment have indeed revolutionized business procedures and processes (Pavic et al, 2007). As noted by AlQirim (2007) information technology utilization is a key driver for better services even though its adoption in SMEs is still in a poor state. Although several definitions exist on information technology, but the following are useful for the purpose of this paper. According to Boar (1997), IT is defined as those technologies deployed in the operation, collection, transportation, retrieval, access, storage, presentation, and transformation of information in all its forms. Attaran (2003) posited that IT is the capabilities offered by computers, software applications, and telecommunications to organizations for the delivery of data, information, and knowledge to individuals and organizational processes. IT is the application of Information and Communication Technologies such as computer hardware, software, and networks required for connecting to the internet (Tan et al, 2009). Information processing and utilization in addition to computer technologies forms the main thrust of the IT applicability. According to Ghobakhloo, Sabouri, Hong and Zulkifli (2011)IT covers a wide range of information processing/systems, computer applications, internet infrastructure as well as any technology used for processing or disseminating information that promotes individual and organizational effectiveness. Furthermore, the computer applications and requisite packages include Computer Aided Design (CAD), Computer Aided Manufacturing (CAM), Enterprise Resource Planning (ERP), Electronic Commerce (EC), Electronic Fund Transfer (EFT), internet, extranet, Collaborative Planning, Forecasting and Replacement Application (CPFR), Supply Chain Communications Systems (SCCS), Electronic Supply Chain Management Systems (ESCMS), among others. The aforementioned applications are IT tools designed to improve organizational productivity. For instance, ERP and EC are directly instrumental in increasing organizational productivity and business performance, cash handling/transfer, purchasing and sales as well as management of resources/raw materials. It suffice then to say that IT has enormous contribution on business operations in as much as organizations avail themselves of its appropriate adoption. On the adoption of IT by SMEs,Salmeron and Bueno (2006) noted that certain characteristics such as types, the name/brand popularity, quality, user friendliness and compatibility are some factors that accounted for success or failure of the process. While Shin (2006) attested to the fact that user friendliness remains a determining factor he as well noted that Enterprise Application Software (EAS) that are easy-to-understand and long in use are more effective when compared to complex or hard-to understand brand new package. This does not in any way exclude their quality, usefulness, and dependability (Sardana, 2008).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the relevance of information technology (IT) to the management of small and medium scale enterprises in Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the relevance of information technology (IT) to the management of small and medium scale enterprises in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing challenges of information technology (IT) to the management of small and medium scale enterprises in Nigeria
Summary
This study was on the relevance of information technology (IT) to the management of small and medium scale enterprises in Nigeria. Four objectives were raised which included: To evaluate the role of Information, technology in the activities and operations of Small and Medium Scale Enterprises (SMEs), to appraise the impact of Information Technology on the managerial practice of SMEs and to investigate the effects of Information Technology on the performance of SMEs. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of selected of SMES in Portharcourt. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, sales rep and IT technicians were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
From the context of this study, a sound conclusion can be drawn with emphasis that ICT has a great influence on productivity in the SME industry in Nigeria. Hence, based on the research overviewed it is noted that Stakeholders in the SME industry agree that the introduction of ICT in its operation changes its process and productivity which in turn boost profitability. In the same vein, the use of ICT by SMEs open up new opportunities , reduces inventories with the use of ICT as well as makes their services more tradable.
Recommendation
Driven by the findings in this research, SMEs in Nigeria has a long way to go for the sector to be most relevant, focused, productive enough and play the crucial role it is expected to in relation to contributing to the growth and development of the economy of Nigeria. The benefits and need to go for technology development through either technology transfer or technological innovations or inter-firm linkages should be emphasized in the light of dimensions of global competition and its negative fall outs as well as positive opportunities, to small and medium scale industries entrepreneurs through seminars and work shop, at the local level.
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