IMPACT OF INFORMATION TECHNOLOGY ON THE PERFORMANCE OF SELECTED SMALL AND MEDIUM SCALE ENTERPRISE IN IDAH LOCAL GOVERNMENT AREA OF KOGI STATE.
Abstract
This study examined the impact of Information Technology (IT) on the performance of selected Small and Medium Scale Enterprises (SMEs) in Idah Local Government Area of Kogi State, Nigeria. Specifically, the research assessed the level of IT adoption among SMEs, investigated its influence on operational efficiency, identified challenges to IT integration, determined its effect on profitability and competitiveness, and proposed strategies for enhancing IT usage. The study adopted a descriptive survey design, using a total enumeration of 120 registered SMEs in the area. Data were collected through a structured questionnaire and an observation checklist, with 112 valid responses analyzed using descriptive statistics such as mean scores, frequencies, and percentages. Findings revealed a moderate level of IT adoption among SMEs, with high usage of online payment systems, social media platforms, and internet services for business operations. However, adoption of advanced tools such as e-commerce platforms, business management software, and data security infrastructure was limited. IT usage was found to significantly improve operational efficiency, streamline processes, enhance customer engagement, and expand market reach. Nonetheless, SMEs faced persistent challenges including high costs of IT acquisition and maintenance, inadequate infrastructure (especially electricity and internet connectivity), limited technical know-how, and concerns over data security. The study concluded that IT adoption plays a critical role in enhancing SME performance in Idah LGA, but its potential is underutilized due to financial, infrastructural, and human capacity constraints. It recommended that government and development agencies provide subsidized IT infrastructure, promote digital literacy through targeted training programs, and improve broadband and electricity access. Additionally, SMEs should adopt affordable, scalable IT solutions and invest in staff capacity-building to optimize the benefits of digital transformation.
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