Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Information and Communication Technology in Small and Medium Enterprises: Factors affecting the Adoption and use of ICT in Nigeria

Ladokun I.O, Osunwole O.O, Olaoye B.O

Open access

The study investigates the factors affecting ICT adoption by SMEs in Nigeria. The structured questionnaire was used to collect data from seventy (70) respondents. The method of analysis is that of correlation coefficient and multiple regressions while the method of estimation is Ordinary Least Squares (OLS) with aid of STATA software. The result indicates that infrastructure is one of the most factors that inhibit ICT adoption by SMEs in Nigeria with highest mean followed by government policies, management support, level of security, maintenance cost skills and training, and investment cost respectively. It is concluded that SMEs in Nigeria have been slow in adopting ICT as they face major constraints such as poor telecommunication infrastructure, limited ICT literacy, inability to integrate ICT into business processes, high costs of ICT equipment, incomplete government regulations for e-commerce, legal and regulatory issues, weak ICT strategies, lack of research and development, excessive reliance on foreign technology and weaknesses in ICT implementation. The study recommends that management should plays an important role in guiding and completing projects relating to ICT adoption, by providing resources for the purchase of the infrastructures required for the new ICT.

Adebayo, O.S, Balogun, O.J and Kareem T.S (2013). An investigative study of the factors affecting the adoption of ICT in SMEs in Oyo State, Nigeria. International journal of business and management invention. 2(9), 13-18.
Arendt, L. (2008) Barriers to ICT in SMEs: how to bridge the digital divide? Journal of Systems and Information Technology, 10(2), pp. 93-108.
Ashrafi, R. and Murtaza, M. (2008).Use and impact of ICT on SMEs in Oman.Electronic Journal of Information Systems Evaluation, 11(3), 125-138.
Brynjolfsson, E. & Hitt, L. (1996). Paradox Lost? Firm–level Evidence on the Returns to Information Systems Spending. Management Science, 42(4).
Buhalis, D. (2003). eAirlines: strategic and tactical use of ICTs in the airline industry Information and Management,41, 805–825.
Chau, P. Y. K. (1995) "Factor Used in The Selection of Packaged Software in Small Businesses: Views of Owners and Managers", Information & Management, Vol 29, No 2, pp 71-78.
Cloete, E. Courtney, S. & Fintz, J. (2002). Small Business Acceptance and Adoption of E-commerce in the Western-Cape Province of South Africa. EJISDC, 10 (4), 1-13.
Duan, Y., Mullins, R., Hamblin, D., Stanek, S., Sroka, H., Mavhado, V., Araujo, J. (2002) “Addressing ICTs Skill Challenges in SMEs: Insights from three country investigations”, Journal of European Industrial Training, Vol. 26, No. 9, pp. 430-441.
Hyvönen, T., Järvinen, J. and Pellinen, J. (2003) ICT and Accounting in the strategy process. Frontiers of E-Business Research, 2003, pp. 230-249.
Grover, V.(1993). The Initiation, Adoption and Implementation of Telecommunications Technologies in US Organisations. Journal of Management Information System, 10 (1), 141-163.
Julta, D., Bodorick, P. and Dhaliwal, J. (2002) Supporting the e-business readiness of small and medium sized enterprises: approaches and metrics. Internet Research: Electronic Networking Application and Policy, 12 (2), pp. 139-164.

Kapurubandara, M. and Lawson, R. (2006) Barriers to Adopting ICT and e-commerce with SMEs in developing countries: An Exploratory study in Sri Lanka, University of Western Sydney, Australia.
Knoll, W.H.C & Stroeken, J.H.M. 2001. The diffusion and adoption of information technology in small and medium sized enterprises through IT scenarios. Technology Analysis & Strategic Management, 13(2): 227-246
Kunda, D. and Brooks, L. (2000) Assessing important factors that support component-based development in developing countries. Information Technology for Development, 9 (2000), pp.123–139.
Lal, K. (2007). Globalization and Adoption of ICTs in Nigerian SMEs, Science, Technology Society, 12 (2), 217-244.
Lauder,G. and Westhall,A. (1997).Small firms on-line. Commissions on Public Policy and British Business.
Lymer, A. (1997). The Internet and Small businesses: a study of impacts. Fifth European Conference on Information System.
Minton, S. (2003). Nordic Nations still top information index. The World Paper . Available at:[http://www.worldpaper.com/2003/oct02/isi1.htm]
OECD (2004), ICT, E-Business and SMEs, Paris: OECD.
Okwuonu . F (2013). Empowering small and medium enterprises with ICT. This Day live. Available at www.thisdaylive.com.
Ongori, H and Migiro, S. O. (2010) Information and Communication technology adoption: a literature review. Journal of Chinese Entrepreneurship, 2(1), 93-104.
Onugu, B. A. N. (2005) Small and medium enterprises (SMEs) in Nigeria: Problems and Challenges. PhD Thesis, St. Clements’s University [online]. Available at:
Pinsonneault, A. and Kraemer, K. L. (1993) Survey Research Methodology in Management Information Systems: An Assessment. Journal of Management Information Systems, 10(2), pp. 75-105.
Sakai, K. (2002), “Global Industrial Restructuring: Implications for Small Firms”, STI Working Papers 2002/4, OECD, Paris (available at http://www.oecd.org/sti/working-papers).
Sajuyigbe A.S and Alabi E, (2012). Impact of information and communication technology in selected small and medium enterprises in Osogbo metropolis, Nigeria. Jounal of school of communication and information technology, Federal Polytechnic, Offa. Vol. 3 No.1
Spanos, Y., Prastacos, G.P., and Poulymenakou, A. (2000), “The impact of
Information and Communication Technologies on Firm Structure: Evidence from an
Economy in Transition”, Conference proceedings, IEEE, International conference on
e-technology, e-commerce and e-Service.

(I.O et al., 2013)
I.O, L., O.O, O., & B.O, O. (2013). Information and Communication Technology in Small and Medium Enterprises: Factors affecting the Adoption and use of ICT in Nigeria. International Journal of Academic Research in Economics and Management Sciences, 2(6), 64–72.