Influence of Information and Communication Technology on the Effective Operation of Small Scale Industries in Asaba Urban

Influence of Information and Communication Technology on the Effective Operation of Small Scale Industries in Asaba Urban

ABSTRACT

This study examined the influence of information and communication technology on the effective operation of small scale industries in Asaba Urban.

Three research questions guided the study. A descriptive survey design was adopted for the study. The population of the study comprised of seven hundred and fifty (750) small-scale industries owners in Asaba, Delta State while the sample of the study was seventy-five (75) small-scale business owners in Asaba, Delta State drawn through simple random sampling technique. The instrument for data collection is a structured questionnaire, title: “Role of Information and Communication Technology on the Effective Operation of Small Scale Industries in Asaba Urban”. Copies of the instrument was sent to experts in Business Education and Educational Measurement and Evaluation Departments of Federal College of Education (T) Asaba for face and content validation. Seventy-five (75) copies of the validated instrument were administered to the small scale business managers and 71 were retrieved and analyzed using mean statistics.

Findings of the study revealed among others that different kinds of information and communication technology gadgets available for use by small scale businesses and are to a high extent used by small scale businesses in Asaba Urban. It was recommended among others that small scale Businesses imbibe information and communication technologies to enhance their effective operation.

CHAPTER ONE

INTRODUCTION

Background to the Study

The world has become a global village where information is available anywhere and anytime courtesy of information and communication technology. Businesses now rely on the service of ICT to enhance their services. The last decades have witnessed rapid and radical changes in all spheres with the rise of information society predicted by social scientists of the 20^th and 21^st century especially in developing countries of the world (Bell, 2019; Masuda, 2020). This is manifested in the pervasiveness of information and communication technologies (ICTs) – from cell phones, to low-cost video cameras, personal digital assistants, and laptops wirelessly connected to the internet has changed the way people live, work, and play.

Information and Communication Technology (ICTs) according to David (2018) can be defined as any technology that facilitates communication and assists in capturing, processing and transmitting information electronically. Akunyili (20117) defined information and communication technology (ICT) as an umbrella term that covers all technical means for processing and communicating information.  In her own view, the convergence of information technology (IT) and telecom technology gave birth to ICT. Practically speaking, ICT finds expression in digital technology and all its uses and variants, including the computer, the internet, mobile telephony, the different electronic applications (e-banking, e-governance, e-commerce, etc), digital media and broadband technology. Some commonly used ICTs in many developing countries include radio, television and print media. Modern ICTs such as softwares, internet, fax, e-mails, mobile phones e.t.c. have become available to many countries worldwide in recent years and they are effective means of communicating knowledge and information to rural agricultural communities (Richardson,2019; Kweku, 2020). This has helped the growth and development of small scale industries.

Small scale industries on the other hand,  means different things to different people (schools of thought). However, the converging point has to do with its prime place as a major contributor to countries’ economy. Small scale industries have been defined against various criteria such as the value of assets employed and the use of energy (Jutla, Bodorick & Dhaliwal, 2021). Meanwhile, there is no universally acceptable definition of small scale industries in Nigeria as it has varied over time and from organisation to organisation (Lal, 2017). The National Association of Small scale industries (NASMSE, 2021) defines small scale industries as businesses employing less than 50 people and with an annual turnover of one hundred million Naira. This association further defines a medium scale enterprise as a business with less than 100 employees and with an annual turnover of five hundred million Naira. Also, the Central Bank of Nigeria and the Small and Medium Enterprises Equity Investment Scheme define small scale industries as any enterprise with a maximum asset base of two hundred million Naira excluding land and working capital with its employees ranging between ten and three hundred (Lal, 20). What is therefore important in these definitions is the relative position of small scale industries in Nigeria as it relates to employment generation and contribution to the country’s gross domestic product.  A small scale enterprise is one that is independently owned and operated, and in which the owner is the sole decision maker and the overall boss (Onuoha, 2016).

According to Benkler (2020), increased use of a networked information helps to achieve competitiveness. ICTs are now seen as drivers of change for rural and agricultural development, since they are efficient tools for reaching rural and remote communities and for improving productivity (Richardson, 2019). ICTs have also been established to speed up the extension of development services in other areas that include healthcare, education and agriculture (Van Audenhove, 2020). Thus, ICTs can be instrumental in strengthening partnerships and in providing a framework for shared knowledge. In fact, technological convergence taking place in the ICTs’ field globally, have also opened numerous possibilities that are rapidly transforming the way people work, live, play, and even the way we relate to one another.

Information and Communication Technologies (ICTs) can impact Small scale industries in three main ways; increase productivity in the production process, increase efficiency of internal business operations and connect Small scale industries more easily and cheaply to external contacts, whether locally or internationally. Although it is tempting to assume high levels of ICT use in expanding Small scale industries, it can be difficult to separate the effects of technology use from other factors since we could have some fast-growing firms that are not necessarily high ICT users (Locke, 2019). However, some recent studies do seem to indicate that the extent of ICT adoption is correlated with the bottom line of company balance sheets. Firms using email for customer communication, for instance, can grow 3.4 percent faster in terms of sales than those which do not (Qiang, Clarke, & Halewood, 2020).

For example, the effective use of ICTs may help firms gain market share at the cost of less productive firms, which could raise overall productivity. In addition, the use of ICTs may help firms innovate, e.g. by helping them to expand their product range, customise the services offered, or respond better to client demand. Moreover, ICTs may help reduce inefficiency in the use of capital and labour, e.g. by reducing inventories.

The effective utilization of information and communication technology in the operation of small scale industries in any part of this country can be hampered by inadequate eelectricity supply, lack of Infrastructure, poor Service from internet service provider (ISP), lack of ICT education, lack of Support from Government, cost of training and maintenance, to mention but a few.

It is against this backdrop that this paper examines role of information and communication technology on the effective operation of small scale industries in Asaba Urban.

Statement of the Problem

The role of small scale industries in poverty alleviation and unemployment reduction in Nigeria cannot be overemphasized. This is because they create job for the unemployed youths there by reducing the rate of unemployment in the country.

The effective operation of small scale industries in this 21^st century seems to be powered by effective utilization of information and communication technology. this is because it makes service delivery easier, faster and more accurate. It brings about growth and expansion of businesses. However, most of the small scale industries in Asaba urban seem to be struggling and some even closed down. This has become a matter of concern among stage holders and the government.  This has made many to attribute it the inability of some of these small scale industries to make use of information and communication technology which has become a catalyst for the effective operation of small scale industries in other parts of the country.

It is against this backdrop that this study is carried out to examine role of information and communication technology on the effective operation of small scale industries in Asaba Urban.

Research Questions

The following questions were raised to guide the study:

1. What are the Information and Communication Technology gadgets available for use by small scale industries in Asaba Urban?
2. To what extent are the available information and communication technology gadgets used in the operation of small scale industries in Asaba Urban?
3. What are the challenges of using Information and Communication Technology gadgets in the operation of small scale industries in Asaba Urban?

Purpose of the Study

The main purpose of this study is to examine the influence of information and communication technology on the effectiveness of operation of small scale industries in Asaba Urban. Specifically, the study seeks to:

1. Examine the kinds of Information and Communication Technology gadgets available for use by small scale industries in Asaba Urban.
2. Investigate the extent of the utilization of the available information and communication Technology gadgets in the effective operation of small scale industries in Asaba Urban.
3. Identify the challenges of using Information and Communication Technology gadgets in the operation of small scale industries in Asaba Urban.

Significance of the Study

This study could be beneficial to students, small scale business owners, government and researchers.

Students could find this study useful because it would help them develop practical skills related to ICT and its application in real-world business scenarios. This knowledge can be valuable for their future careers. As ICT plays a crucial role in modern business operations, understanding its application in small-scale industries is relevant and aligns with current industry trends. This topic bridges the gap between technology and business management, offering an interdisciplinary perspective, which is increasingly important in today’s dynamic job market. It provides opportunities for students to engage in research and problem-solving activities, which can enhance their critical thinking and analytical skills.

Small-scale industries could benefit significantly from study because it could help them in adopting ICT solutions, as they can streamline their operations, reduce manual work, and improve overall efficiency. Embracing ICT could provide small-scale industries with a competitive edge in the market, allowing them to compete with larger enterprises and reach a broader customer base. Properly implemented ICT solutions could lead to cost savings in terms of labor, time, and resources, which is particularly important for small businesses with limited budgets. ICT could enable small-scale industries to tap into new markets and reach a global audience, potentially expanding their business opportunities. Studying the role of ICT could encourage innovation and adaptation in small-scale industries, helping them stay relevant in a rapidly changing business landscape.

The study could help the government understand how technology can create new jobs and improve the quality of existing ones, leading to reduced unemployment and increased income for the population. ICT could foster innovation and entrepreneurship by providing small-scale industries with access to information, markets, and resources. Governments could support and promote innovation ecosystems through policies and initiatives informed by such studies.

The findings of the study could inform the government’s policy decisions related to technology adoption, infrastructure development, and support mechanisms for small-scale industries. This could lead to more targeted and effective policies that promote the growth of these industries. Governments often aim to bridge the digital divide by ensuring that ICT benefits reach all segments of society, including small-scale industries. A study on the role of ICT in small-scale industries could provide valuable insights and data that policymakers can use to design and implement effective strategies.

This study could enable researchers can explore how ICT contributes to process improvements, product innovation, and the development of new business models. Small-scale industries are often significant sources of employment, particularly in developing economies. Studying the impact of ICT on these industries could help researchers assess its role in job creation, skill development, and labor market dynamics. ICT can bridge geographical and market barriers, enabling small-scale industries to reach global customers and supply chains. Researchers could assess whether ICT helps reduce resource consumption, enhance sustainability practices, and mitigate the environmental footprint of these industries.

Scope of the Study

This study focused on influence of information and communication technology and effective operation of small scale industries in Asaba Urban. With particular emphasis on availability, extent of utilization and challenges to effective utilization as variables of interest. Respondents of the study are small scale industry owners in Asaba Urban.

Limitation of the Study

The study cannot be used to generalize to the entire nation because it was limited to influence of information and communication technology on the effective operation of small scale industries in Asaba Urban. The small sample size of the study and use of only registered small scale industries are sources of limitation to this study. Limited access to literature due to time constrain and limited finance narrowed the scope of the study.

Pages:  70

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo

Material contains Table of Content, Abstract and References.