ABSTRACT
This 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.
The 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
respondents.
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.
Conclusion 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
References
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Definitions
of Small and Medium Scale Enterprise
2.3 Meaning
and Evolution of Information Technology
2.4 The Role of Information Technology in
Small And Medium Scale Enterprises
2.5 Theoretical
Framework
REFERENCES
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research
Design
3.3 Population
of Study
3.4 Sampling
Procedure
3.5 Research
Instrument
3.5 Research
Instrument
3.6 Validation
of Research Instrument and Testing
3.7 Data
Analysis Technique
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Preamble
4.2 Brief
Profile of Card Centre Nigeria Limited
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
5.1
Summary
5.2 Conclusion
5.3 Recommendations
References
Appendix: Questionnaire
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The 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 (Udechukwu, 2003).
Notwithstanding 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.
Investment 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.
However, 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.
1.2 STATEMENT OF THE PROBLEM
Despite 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 software.
The 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.
1.3 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:
1. To evaluate the role of Information
Technology in the activities and operations of Small and Medium Scale Enterprises
(SMEs);
2. To appraise the impact of Information
Technology on the managerial practice of SMEs;
3. To investigate the effects of
Information Technology on the performance of SMEs.
1.4 RESEARCH QUESTIONS
According to the objectives stated
above, the research questions that would be examined in the course of the study
are as follows:
1. What role does Information Technology
play in the activities and operations of Small and Medium Scale Enterprises
(SMEs)?
2. How has Information Technology impacted
on the managerial practice of SMEs?
3. How has the adoption of Information
Technology affected the performance of SMEs?
1.5 RESEARCH HYPOTHESES
Based on the research questions stated
above, the hypotheses to be tested in the course of this research are stated
below:
HYPOTHESIS
(1)
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 Enterprises (SMEs).
HYPOTHESIS
(2)
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 of SMEs.
HYPOTHESIS
(3)
Ho: That
Information Technology has not improved the performance of SMEs.
H1: That
Information Technology has improved the performance of SMEs.
1.6 SIGNIFICANCE OF THE STUDY
Besides 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.
While 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.
1.7 SCOPE OF THE STUDY
Information 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.
This 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.
1.8 DEFINITION OF KEY TERMS
i.
Data:- 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.
ii.
Information:- This is a valuable data Until it is
placed in an appropriate context, data is not information.
iii.
Technology:- 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)
iv.
Information Technology:- This is the hardware, software and
other tools and equipment used by the participants while doing their work
(Alter, 2002).
v.
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).
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