Drivers for Information and Communication Technology Adoption: a Case Study of Nigerian Small and Medium Sized Enterprises

Topics: Case study, Small business, Information technology Pages: 16 (6160 words) Published: March 3, 2013

International Journal of Business and Management

Vol. 6, No. 5; May 2011

Drivers for Information and Communication Technology Adoption: A Case Study of Nigerian Small and Medium Sized Enterprises Idisemi Apulu (Corresponding author) School of Technology, University of Wolverhampton Wulfruna Street, West Midlands, WV1 1LY, United Kingdom Tel: 44-776-578-5662 E-mail: [email protected]

Dr. Ann Latham School of Technology, University of Wolverhampton Wulfruna Street, West Midlands, WV1 1LY, United Kingdom Received: December 10, 2010 Abstract In recent times, the current use of Information and Communication Technology (ICT) in many organizations causes some forms of revolution in their business practices. ICT is increasingly becoming related to organizational values (Rastrict and Corner, 2010). Researchers (e.g. Rastrict and Corner, 2010; Lin and Lin, 2006 and Melville et al., 2004) reveal that there is a growing support for the positive relationship between ICT and its advantages. According to Kapurubandara and Lawson (2006), ICT offers promising opportunities to organizations in order to meet the challenges of an ever-changing environment. ICTs have a remarkable potential to contribute to sustained competitive advantage for businesses, having been identified as key tools in management processes (Ion and Andreea, 2008). Kutlu and Özturan (2009), argue that in Small and Medium Sized Enterprises (SMEs), ICT can be used as a business tool to reduce costs, create stronger links with customers, create innovations and facilitate market niche. Ongori (2009) also states that SMEs are compelled to adopt ICT in their business processes in order to cope with the challenges in the business environment. Thus, this paper intends to identify some drivers for ICT adoption amongst 25 SMEs in Nigeria. The paper is drawn from on-going PhD research. Keywords: Drivers, ICT, SMEs, Adoption, Nigeria 1. Introduction There is a rapid development in the use of ICT in organizations. In recent times, ICT is being applied in a wide range of areas in many organizations. It has provided new ways to store, process, distribute and exchange information within companies and with customers (Kollberg and Dreyer, 2006). The recent ICT developments have enormous implications for the operation, structure and strategy of organizations (Buhalis, 2003). Organizations of all types around the globe are currently utilizing ICT, not only for cutting costs and improving efficiency, but also for providing better customer service (Ashrafi and Murtaza, 2008). Spanos et al. (2002) state that ICT has the ability to enhance, coordinate and control the operations of many organizations and can also increase the use of management systems. On the other hand, Ongori and Migiro (2010) state that the impact of globalization has obliged many SMEs to adopt ICT in order to survive in the present competitive era especially in the area of competing with large organizations. Bresnahan et al. (2002) argue that durable productivity gains have been achieved in enterprises that use ICT. ICT helps in the effective flow of data in organizations thereby assisting organizations to obtain information at any given time which in turn, helps these organizations to reach their desired target. In addition, ICT brings about change in businesses and helps to create competitive advantage hence, organizations of all types including SMEs tend to adopt ICT. Information and Communication Technology (ICT) refers to a wide range of computerized technologies. ICT is any technology that enables communication and the electronic capturing, processing and transmission of information. These technologies include products and services such as desktop computers, laptops, handheld Accepted: December 21, 2010 doi:10.5539/ijbm.v6n5p51

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International Journal of Business and Management

Vol. 6, No. 5; May...
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