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ABSTRACT
Due to the numerous advantages of information and communication technology (ICT) , small and medium
enterprises (SMEs) are trying to adopt ICT applications to support better performance of their businesses. This paper
investigates the impact of information and communication technologies on the business process management in small and
medium enterprises in Ogbomoso Oyo State, Nigeria. Bread bakeries industries formed the sample of the study based on
random sampling techniques. The data obtained through interview and questionnaires were analyzed using descriptive
statistical tools such as frequency table, percentage and mean score analysis. The results of the research present the benefits
attributed to the implementation of ICT, such as the increase in productivity of SMEs , increase in sales, advertisement,
fund attraction and market reach. The results of the study recognize that ICT does add value to the business and can give a
company a competitive advantage. Most of the respondents realized a positive performance and other benefits by utilizing
ICT in their businesses however, lack of basic knowledge about its use, lack of internal capabilities, lack of financial
support and non availability of infrastructure are the major barriers in adopting ICT. It was then recommended that there
is a need for more focus on increasing awareness among SMEs on the benefits of ICT adoption and more training facilities
in ICT for SMEs, measures to provide ICT products and services at an affordable cost, and availability of professional
advice at reasonable cost to SMEs.
KEYWORDS: Information and Communication Technologies, Business-Process, Small and Medium Business. Bakery
Industries, Ogbomoso, Nigeria
INTRODUCTION
In this 21st century, e-commerce is emerging globally, in much the same way as national markets evolved from
local and regional networks. The modern economic environment which is dominated by globalization,
hyper-competition,the knowledge and information revolution has revolutionized the way business is conducted [1].
This new technological epoch is apparent through intensified investment in computer-processing and data preparation
appliances in the manufacturing and service industries, telecommunications infrastructure and wide spread usage in all
private sectors, public sectors and, more recently, in the household. In view of this technological progress, the
implementation and application of information and communication technology (ICT) is a significant driving force behind
many socioeconomic changes [2]. As the usage and commercialization of information and communication technology
becomesmore widespread throughout the world, the adoption of novel information and communication technology can
generate new business opportunities and various advantages.
Small and medium enterprises (SMEs) in Nigeria embrace important role within national economy. This role is
potentially influenced by the recent rapid changes of information and communication technology [3].Among the area of
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weakness of small and medium enterprises in Nigeria deal with market orientation, human resource quality, technological
mastery, market access, and capitals. However, one of the weaknesses is related to the aspect of information and
communication technology application. The application of the technology within industries will be commenced by the use
of such technology by individual. To put into consideration that the key individual in small and medium enterprises is the
owner of the small and medium enterprises, therefore the intensity for the use of computer technology by the owner of
small and medium enterprises is assumed to give influence toward the intensity in the use of computer technology by the
organizations or industries.
The owners of industries are the most significant individuals in determining the organizations directions and
policies, including the use of computer technology. [4]shows that there is a close relation between the owner of small
businesss perception with the computer system and the actual use of such computer system. Meanwhile, small and
medium enterprise key character as the end user of information technology tended to put its attention to computer selfefficacy, that is aspect of training and ability in using computer system [5].
As pointed out by [6], in the small business domain, information and communication technology would prove to
be invaluable in tracking customer orders, correspondence, delivery and payments. [7] has correctly pointed out that in
todays global economy even the larger high-technology companies are finding that technical leadership, by itself, is not
enough to meet global competition. The most important factor seems to be the ability to deliver a quality product, on time,
at a competitive price, anywhere in the world. According to [7], in this electronic arena, small and large companies alike
can combine appropriate resources from anywhere in the world to reach target markets anywhere.
Though, the application of information and communication technology in small and medium enterprises is not
easy, especially if it is related to the weaknesses found in the management of small-scale businesses. The main problem is
due to the prior perception that information and communication technology is expensive and complicated to be utilized by
the small-scale entrepreneur. The second problem is the unavailability of the information technology infrastructure that
does not support the implementation of information and communication technology. The last problem concerns with the
educations and skills of the human resources in using the information and communication technology.
Small and medium scale enterprises have varying definitions and have been a major player in the Nigerian
economy, especially as the largest provider of an employment, and the primary or secondary source of income for many
households. SME includes a variety of fields such as agricultural, trade, processing, services and many more. In Nigeria,
SME sector is often associated with social and economic problem like high levels of poverty, unequal income level and
unemployed.Small and medium scale enterprises have been long recognized as an instrument of economic growth and
development. This growing recognition has led to the commitment of World Bank group on small and medium enterprises
sector as core element in its strategy to foster economic growth, employment and poverty alleviation. The importance of
small and medium scale enterprises has not been in doubt; unfortunately classifying businesses into large and medium
scale is subjective and premised on different value judgment. Small and medium enterprises have a narrow context within
which its operation is carried out. However, where it is effectively operated it has capacity to sprout the economic growth
and national development. In every economics small and medium enterprises has been seen has a pivotal instrument of
economic growth and development for developing economics [8, 9, 10].
The main focus as an issue of much apprehension to entrepreneurs, scholars and practitioners in developing
economy like Nigeria is information and communication technology impact on improve in productivity and performance
on small and medium enterprises.
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The use of information communication technology to improve productivity and performance is one of the
challenges being faced by small and medium enterprises presently in developing country due to the lack of knowledge on
the benefit of information communication technology in their businesses. However, globally, there is the need for changing
roles of small and medium enterprises operation to meet the global challenges. Information communication and technology
is expected to improve small and medium enterprises operation performance in a form of transactional convenience, saving
of time and quick transaction.
Hence, more research works need to be emphasized on information communication technology and the operation
performance of small and medium enterprises in order to discover how small and medium enterprises can be benefited
much more from information and communication technology. More studies in Nigeria focus on information technology
adoption and usage in the financial sectors. However, the main objective of this study is impact of information and
communication technology on business processing management in small and medium enterprises sectors using bread
bakery industries in Ogbomoso area of Oyo State Nigeria as a case study.
METHODOLOGY
The study area was Ogbomoso, Nigeria; achoice based on its considered location as one of the commercial area in
the state. Ogbomoso is a town with unique features and is expanding its small industrial base, especially many roads that
link to several rural areas surrounding the town. Moreso, education (LAUTECH) and health facilities (LAUTECH and
BOWEN Teaching Hospital are expanded to rural and remote areas. To achieve our objective, both primary and secondary
source of data was employed in this work. Primary source of data was basically interviews and administering of
questionnaires to retrieve information from the selected bakery industries in the area of study.
The questionnaires which were administered to the industries provided wide range of options for them to choose
from. Simple random sampling was applied to select sixty (60) commercial bread bakery industries as the target population
for this study. Likert five point scales ranging from 1-5(1=strongly agree and 5=strongly disagree) were used as a basis of
the questions. Secondary source of data for the study include textbooks, business articles and journals, the internet. The
analysis of data obtained was carried out with particular reference to the research questions using descriptive statistical
tools such as frequency table, percentage and mean score analysis.
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business become visible and easier to be reached and the market can be accessed by the general public locally and
internationally. Once the company make its profile visible, can be easily reached and accessed by opening its own website,
the business gains market recognition by the public. Fund attraction with visible company profile and its well recognition,
banks are more willing to raise or give loans to the company.
Table 1: Benefits of Information and Communication Technology
Benefit
Market reach
Marketing
Increase in sales
Fund attaraction
Productivity improvement
27
27
17
13
56
Factors
Awareness customer
Customer Demand
level of competitive
Standard Deviatiom
1.0
1.2
1.4
1.3
1.4
17
Standard Deviation
1.3
1.4
1.3
1.5
18
communication technology.
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