EFFECTS OF GSM ON SERVICE DELIVERY OF SMES IN NIGERIA (Case study of Registered SMEs in Edo State)
1.1 BACKGROUND TO THE STUDY
In today’s highly competitive
global market place, the pressure on organization’s to find new ways to
creating and delivering value to customers is growing stronger. ICT is today
being applied in many organizations in a wide range and operations areas. It
has provided new ways to store, process, distribute and exchange information
both within companies and with customers and supplier in the supply chain
(Somuyiwa and Oyesikun, 2010).
Most SMEs in Nigeria use Global
System of Mobile communication(GSM) to communicate their customers and by this
build stronger relationship. They realize that easy access to GSM and the
delivery of their product or services are important Edo in developing and
sustaining market competitiveness nationally and internationally.
Business-to-Customer and electronic-business can help companies to achieve
competitive advantages by providing customers with superior and timely
services. The source of competitive advantage is found in the ability of the
organization to differentiate with eyes of the customer from its competition
and again from operating at lower cost and hence at lower cost and greater
profit. According to Haag et.al.(2002), for SMEs to address customer needs in
this ever-changing environment and also to be winner in the market-place,
timing and superior service are becoming the keys to attain competitive
Customers nowadays are becoming
more time sensitive and time oriented in terms of time and service delivery.
Evidences from the literature like (Yang 2001; Elegbeleye 2005; Ajiboye, et.,
al., (2007) showed that GSM has considerable impact on the economy being an
emerging communication industry in Africa, with Nigeria rated as one of the
fastest growing market in this field of communication. GSM has enable SMEs in
giving timely product information to the customers and also getting feedback
within the shortest possible time.
According to Ayo, et., al.,
(2007); Nigeria was the fastest growing telecoms nation in Africa and the third
of the world. The country had experienced a phenomenal growth from a tele
density of 0.49 in 2000 to 25.22 in 2007. This trend had brought about a
monumental development in the major sector of the economy, such as banking,
telecoms and commerce in general. GSM is one of the most explosive developments
ever to have taken place in the telecommunications industry (Wojuade (2005),
Anyasi and Otubu (2009)). Audile (2000) described GSM as part of evolution of
wireless mobile telecommunication that includes high speed circuit, switched
data, general packets radio system and universal mobile telecommunication
The concept, importance, economic
implications and policy implication of GSM have been discussed by some authors
and researchers. According to Balogun (2000), the emergence of GSM facilitates
economic development as it provides easy and effective communication needed to
stimulate and promote trade between Nigeria and its foreign partners in the
world. GSM has emerged as in integral essential part of the culture and life of
Nigerians. It had played a significant role in communication and encourages
investment; Tella et al. (2007). In respect to employment, Manuaka (2008) and
Okereocha (2008) found that, over 1,000,000 Nigerians have been directly and
indirectly employed by the operators.
The globalization of world
economy has further amplified the importance of telecommunications to the
economy. The Telecommunication Sector is one of the fastest-growing sectors in
Nigeria as averred by Ajiboye et al.(2007). The phenomenal growth of GSM since
it was introduced in Nigeria about fifteen year ago confirms this. GSM is
indeed one of the major dividends of Nigeria’s transition to democracy. Since
its invention, mobile phones have become a necessary product to many business
owners and more users are expected and obviously the growing pace of worldwide
mobile population will not slow down in the near future. The global mobile
telecom users will be about 3.2 billion; the 45% of the world’s population according
to Total Midyear population forecast for the world in 2011. This will also
enhance the accessibility of SMEs to several customers through mobile phones.
This is together with the substantial growth of mobile phone as Hsiao (2004)
confidently claimed on the potential growth of the mobile internet users. When
more mobile phone users adopt mobile internet services, the m-commerce industry
has a better opportunity for business growth.
In the offline environment, it is
common knowledge that the quality of services and products is a key determinant
of customer satisfaction and loyalty (Parasiraman et al., 1988). Recent
empirical evidence shows that, this holds true also for electronic service
providers. The quality of services delivered through a web site has become a
more significant success factor than low prices or being the first mover in the
market space (Reibstein, 2002). The extent to which the GSM affects the service
delivery of SMEs in Edo State is the tenets of this study.
1.2 STATEMENT OF THE PROBLEM
Studies on GSM impact on service
delivery of SMEsare inadequate in Nigeria as at the time of this work. Many
studies show that SMEs are the driving engine of growth, job creation, and
competitiveness in domestic and global markets. To achieve their full potential
in these areas SME’s in Nigeria needs to catch up with the new managerial and
economic trade such mobile business, the telephone system in Nigeria has been
challenged for years. Since the introduction of GSM, mobile telephoning has
rapidly become the most popular method of voice communication in Nigeria; and
the use of GSM in order to satisfy their customer wants most importantly determines
the quality of their service delivery. Moreover, the extent of GSM usage by
SMEs and the effect on customers’ service delivery needed to be research into.
There is a paucity of research in this area in Nigeria. Thus, this study
endeavors to investigate the effect of GSM as tool for improved service
delivery in the Nigerian SMEs.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
examine the effects of GSM on service delivery of registered SMEs in Edo State.
examine the level of adoption of GSM by registered SMEs in Edo State.
identify the factors that hinders the use of GSM by registered SMEs in Edo
1.4 RESEARCH QUESTIONS
are the effects of GSM on service delivery of registered SMEs in Edo State?
is the level of adoption of GSM by registered SMEs in Edo State?
are the factors that hinder the use of GSM by registered SMEs in Edo State?
HO: There is no significant
relationship between GSM usage and service delivery of registered SMEs in Edo
HA: There is significant relationship
between GSM usage and service delivery of registered SMEs in Edo State.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
results from this study will educate the managers of SMEs in Nigeria and the
general public on the effect of GSM on service delivery of SMEs. It will also
educate on the factors limiting the effective usage of GSN by SMEs in Nigeria.
research will be a contribution to the body of literature in the area of the
effect of personality trait on student’s academic performance, thereby
constituting the empirical literature for future research in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study will cover the relationship between GSM
usage and service delivery of SMEs in Nigeria.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
Time constraint- The researcher will simultaneously
engage in this study with other academic work. This consequently will cut down
on the time devoted for the research work
Adu and Wojuade, (2007): Stakeholders’ Perceptions of the Impact of GSM on
Nigeria Rural Economy: Implication for an Emerging Communication Industry,
Journal of Information Technology Impact Vol. 7, No. 2.pp. 131 –144, 2007
F.I and P.A Otubu (2009): Mobile Phone Technology in Banking System: Its
Economic Effect, Research Journal of Information Technology 1(1): 1-5, 2009
ISSN: 2041-3114, Maxwell Scientific Origination
N.O. (2000, November 7). Matters Arising on Mobile Wireless Licensing. The
K. and Babagide Daniel O. (2007): “Designing a reliable E-Payment System:
Nigeria a case study” Journal of Internet Banking and Commerce August 2006,
vol11 no 2, htt://etds.ncl.tw/theabs/index/jsp.
J. (2000). Impact of GSM on Economy and Development. Center for Culture and
Technical Interchange between East and West, Gwalada Abuja
Cummings, M and McCubbrey, D (2002): Management Information Systems for the
Information Age, McGraw-Hill Higher Education, New York.
(2008). Seven Years of Telecoms Revolution: The Prime Investors’ Destination.
Tell Magazine of Nigeria.
C (2008). Seven Years of Telecoms Revolution –One Revolution, a Thousand Gains.
Tell Magazine of Nigeria
A., Zeithaml, v. & Berry, L. (1988), ‘A conceptual model of SQ and its
implications for future Research’ journal of marketing, vol. 49. Fall, pp
D. (2002), ‘What attract customers to online stores, and what keepassthem
coming back?Journal of the Academy of marketing science, vol. 30. Pp465-473
A. O. and Oyesiku, O. O. (2010) Analysis of Performance of Collaborative
Sharing Cost in Outbound Logistics. Current Research of Social Sciences-Maxwell
Scientific Organization. 2(3)181-186.
(2007). Telecommunications Infrastructure and Economic Growth Evidence from
Nigeria, Being a Paper Submitted for the Un-Idep and Afea Joint Conference on
Sector-Led Growth in Africa and Implications for Development Dakar, Senegal,
J.I (2005). Impact of global system for mobile telecommunication on Nigerian.
Economy: A case of some selected local government area in oyo state, Nigeria.
Amed thesis. University of Ibadan, Nigeria
(2001), ‘Consumer perceptions of service quality in internet-based electronic
commerce’ proceedings of the 30th EMAC Conference, 8-11 may, Bergen.