Digital Transformation on Business Performance of SMES in Ibadan, Oyo State, Nigeria

Abstract

The study is based on assessing digital transformation's impact on SMEs' business performance in Ibadan. A descriptive research design was used to investigate the influence of digital transformation on SME business performance in Nigeria. The quantitative data collection instruments adapted for the study are a questionnaire and secondary data from SME records. The population targeted for this study is SME managers in Ibadan, Oyo State, Nigeria, and it is estimated at 7,987 enterprises. A sample size of 381 SME managers was selected using a purposive sampling technique based on the local government area. This research instrument was a structured questionnaire relating to socio-demographic characteristics and variables relating to government policies, technological and infrastructural factors, and SME performance. Reliability was determined by Cronbach alpha at 0.871. Data analysis was performed using SPSS Version 24.0 for descriptive and inferential methods that include multiple regression analysis in determining the predictor variables' variance on the dependent variable. The results indicate that the ANOVA tables signify the following significant regression models: Automation Level, Digital Skills, and Training together had a combined significant impact on revenue growth F(1, 379) = 56.943, p <.001, and also combined to impact operational efficiency significantly, F(1, 379) = 11.156, p =.031. Besides, online presence and engagement immensely impacted customer retention rate, F(1, 379) = 9.122, p < .001. The findings below stress the critical role of process automation, digital skills development, and online involvement in empowering SME performance. It was recommended that SMEs improve competitiveness, efficiency of operations, and customer retention through investments in process automation, improving digital skills and training, and reinforcing online presence and engagement.

Suggested citation

Deborah Olufunke Ayeni, Eseza Akiror Erwat, Taiwo Nurudeen Oladeji (2025). Digital Transformation on Business Performance of SMES in Ibadan, Oyo State, NigeriaScientific Journal for Technology Management, Information & Artificial Intelligence, 1(1). https://doi.org/10.69798/75450083

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