THE RELEVANCE OF INFORMATION TECHNOLOGY (IT) TO THE MANAGEMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA (A Case Study of Card Centre Nigeria Limited )
research project examine the relevance of Information Technology to the
Management of Small and Medium Scale Enterprises in Nigeria with reference to
Card Centre Nigeria Limited.
research design took
both an inferential and a descriptive approach. A sample size of fifty (50) was drawn from
the population. A hundred questionnaires were distributed randomly to
stratified groups among the staff of De-United Food Industries Plc. A 5 - point
likert scale was developed and validated to collect information from the
data collected was analyzed with basic descriptive statistics such as frequency
and simple percentages. Chi-square analysis was also made. The core findings
from the results obtained show that that Information Technology play
significant role in the activities and
operations of Small and Medium Scale Enterprises (SMEs), that Information
Technology has impacted positively on the managerial practice of SMEs and that
Information Technology has improved the performance of SMEs.
was draw from the summary of the result. Various remarks and recommendations were
proffered to the organization of study.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Definition of Key Terms
CHAPTER TWO: LITERATURE REVIEW
Definitions of Small and Medium Scale
2.3 Meaning and Evolution of Information
2.4 The Role
of Information Technology in Small And Medium Scale Enterprises
CHAPTER THREE: RESEARCH METHODOLOGY
3.2 Research Design
3.3 Population of Study
3.4 Sampling Procedure
3.5 Research Instrument
3.6 Validation of Research Instrument and
3.7 Data Analysis Technique
CHAPTER FOUR: DATA PRESENTATION AND
4.2 Brief Profile of Card Centre Nigeria
4.3 Presentation of Bio-Data of Respondents
4.4 Hypotheses Testing Hypotheses
4.5 Interpretation and Analysis of Results
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
TO THE STUDY
dynamic role of Small and Medium Enterprises (SMEs) in developing countries as
engines through which the growth objectives of developing countries can be
achieved has long been recognized and stated in the literature. The advantages
claimed for Small and Medium Enterprises (SMEs) are various, including: the
encouragement of entrepreneurship (Olorunshola, 2003); the greater likelihood
that SMEs will utilise labour intensive technologies (Salami, 2003) and thus
have an immediate impact on employment generation (Udechukwu, 2003, Ogujiuba
et. al., 2004, Henriques and Klock 1999); they can usually be established
rapidly and put into operation to produce quick returns; SMEs development can
encourage the process of both inter- and intra-regional decentralization
(Ogujiuba et. al., 2004); and, they may well become a countervailing force
against the economic power of larger enterprises (Salami, 2003). More generally
the development of SMEs is seen as accelerating the achievement of wider
economic and socio-economic objectives, including poverty alleviation
the recognition of the important roles SMEs play in these countries, their
development is largely constrained by a number of factors, such as lack of
access to appropriate technology; limited access to international markets, the
existence of laws, regulations and rules that impede the development of the
sector; weak institutional capacity, lack of management skills and training,
and most importantly finance. While some of these factors such as financing
have received adequate attention in the literature, some of them, such as
technology, have not.
in technology and keeping up with information technology (IT) is increasingly
important to all firms (Farag et al, 2009). Technology plays a crucial role in
the development of new SMEs. Technology not only helps in evolving a
multi-pronged strategy but also in maximising business opportunities. IT is
perceived as essential to achieve sales. Alter (2002) noted that information has
the highest likelihood of making a difference if it is integrated into
structured business processes and used by people with the knowledge and
training needed to interpret it and apply it correctly. Opara et al (2010)
assert that the influence of technology goes beyond isolated behavioural
changes for the optimization of organizational productivity; it also, affects
the culture prevalent in the organization.
the use of technology involves cost. Computer hardware and software need to be
bought and installed. SMEs without access to capital may find it difficult to
purchase necessary technology. The rising cost of production inputs in Nigeria
especially the cost of electricity and other operating costs can constrain
growth. It is therefore pertinent to examine the relevance of information
technology to the operations of Small and Medium Scale Enterprises in Nigeria in the
face of the challenging business environment.
OF THE PROBLEM
the potential role of Small and Medium Scale Enterprises (SMEs) to accelerated
growth and job creation in developing countries, their development is hampered
by a number of factors. One of these factors among others is access to
Information Technology (IT). SMEs often have difficulties in gaining access to
appropriate technologies and information on available techniques. Despite the
numerous institutions providing training and advisory services, there is still
technology-gap in the SME sector as a whole. This is because most small and
medium scale entrepreneurs cannot afford the high cost of computer hardware and
inaccessibility to appropriate Information Technology places significant
constraints on SME development. Even though SMEs tend to attract motivated
managers, they can hardly compete with larger firms. In most cases, SMEs
utilize foreign technology with a scarce technical support. The lack of support
services or their relatively higher cost can hamper SMEs' efforts to improve
their management, because consulting firms are often not equipped with
appropriate cost-effective management solutions for SMEs. They usually acquire
foreign licenses, because local patents are difficult to obtain.
OF THE STUDY
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
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.
to the objectives stated above, the research questions that would be examined
in the course of the study are as follows:
What role does Information Technology play
in the activities and operations of Small and Medium Scale Enterprises (SMEs)?
How has Information Technology impacted on
the managerial practice of SMEs?
How has the adoption of Information
Technology affected the performance of SMEs?
on the research questions stated above, the hypotheses to be tested in the
course of this research are stated below:
Ho: That Information Technology does not play
any significant role in the activities
and operations of Small and Medium Scale Enterprises (SMEs).
H1: That Information Technology plays
significant role in the activities and operations of Small and Medium Scale
Ho: That Information Technology has not
impacted positively on the managerial
practice of SMEs.
H1: That Information Technology has impacted
positively on the managerial practice
Ho: That Information Technology has not
improved the performance of SMEs.
H1: That Information Technology has improved
the performance of SMEs.
OF THE STUDY
finance, there are other critical elements that are germane to the survival and
competitiveness of Small and Medium Scale enterprises (SMEs). One of such
factor is Information Technology. This study is significant because it would
help to evaluate the role of Information Technology in the activities and
operations of a vital segment of the real sector - Small and Medium Scale
enterprises (SMEs), which have been identified as having very high potential in
promoting economic growth and development.
several studies had been conducted on the relevance of Information Technology
to large firms, to the best of my knowledge, no study has been conducted on the
relevance of same to Small and Medium Scale Enterprises especially in Nigeria.
Therefore, this study would strive to bridge this research gap by establishing
the link between the adoption of Information Technology and the managerial
efficiency of Small and Medium Scale Enterprises.
OF THE STUDY
Technology is the multi-disciplinary study of the collection, processing and
storage of data; of the use of information by individuals and groups,
especially within an organisational context; and of the impact, implications
and management of artifacts and technologies applied to those activities. It is
therefore evident that the scope of the Information Technology is broad, and
encompasses both organisational and technical matters.
study shall focus on the extent to which Information Technology (IT) is
relevant to the management of Small and Medium Scale Enterprises in Nigeria. This
study shall not be restricted to the book-keeping and accounting aspects of
Information Technology but shall also cover its relevance to planning and
forecasting, marketing, decision-making etc. Most of the information and data
needed for the study would be gathered from existing literature and from a
survey that would be conducted among selected staff of Card Centre Nigeria
Limited a card manufacturing company located in Victoria Island in Lagos State.
OF KEY TERMS
This is any symbol, sign, image, sounds or measure which is in a form which can
be directly captured by a person or a machine.
This is a valuable data Until it is placed in an appropriate context, data is not
This constitute all the knowledge (know-how and know why), products,
processes, tools, methods, and systems employed in the creation of goods or in
providing services (Omar and Sapuan, 2010)
Technology:- This is the hardware, software and other tools and
equipment used by the participants while doing their work (Alter, 2002).
Information System:- “a work system whose
business process is devoted to capturing, transmitting, storing, retrieving,
manipulating, and displaying information, thereby supporting other work
systems" (Alter, 2002:6).