Digital Adoption of SME in Nigeria: The Relationship with Business Performance
Keywords:
Digital Adoption, Business Performance, Nigerian SMEs, Digital Adoption, Business Performance, Nigerian SMEsAbstract
In any business today, globally or locally, digitalization is inevitable. However, the study on digital adoption of the Nigerian small and medium enterprises (SMEs) and its relationship with business performance is scarce. Therefore, the aim of the study is to discover patterns within this relationship. From the literature review conducted, relationship existed between digital adoption and business performance. A research instrument was designed and items were adopted from various sources in the literature to test this relationship further. Digital Adoption was measured through Cloud computing, E-commerce, Mobile-commerce, Microblogging, and Company website. Meanwhile, measures of growth were utilised to gauge Business Performance. A total of 248 entrepreneurs from the state of Lagos, Nigeria participated in this survey. Demographic analysis, mean, standard deviation (SD), skewness, kurtosis, correlational analysis, and regression analysis were carried out. Results from the regression analysis conducted showed that digital adoption significantly and positively predicted business performance. This implicates on the importance of Nigerian SMEs in digitalizing their business for better performance.
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