Use of ICTs and the Economic Performance of SMEs in East Africa

determinants of aid efforts, generosity, ODA, DAC, donors, G7

Use of ICTs and the Economic Performance of SMEs in East Africa

This paper assesses the use of information and communication technologies (ICTs) and their impact on the economic performance of small- and medium-scale enterprises (SMEs) of three East African countries: Kenya, Tanzania and Uganda. Findings of the paper suggest that the diffusion of ICT among East African SMEs is both industry and country specific. The empirical findings suggest that investment in ICT has a negative impact on labour productivity and a positive impact on general market expansion. However, such investment does not have any significant impact on enterprises’ return, nor does it determine enterprises exporter (non-exporter) status.information and communication technology, small and medium enterprises, firm performance, market expansion, East Africa

Mobile apps usage and dynamic capabilities: A structural equation model of SMEs in Lagos, Nigeria.

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.Significant knowledge exists regarding the application of dynamic capability (DC) frameworks in large firms, but their impact on smaller organisations is yet to be fully researched. This study surveyed 1162 small and medium sized enterprises (SMEs) in Lagos in an effort to understand how SMEs in developing country contexts use mobile apps to enhance their businesses through DCs. Through the use of the covariance-based structural equation modelling (SEM) technique, the study explored the fitness of a conceptual formative model for SMEs. The model assembled 7 latent variables namely: mobile app usage, adaptive capability, absorptive capability, innovative capability, opportunity sensing ability, opportunity shaping ability and opportunity seizing ability. Subsequently, 15 hypotheses aimed at testing the relationships between the latent variables were developed and tested. The findings revealed that mobile app usage increases the adaptive, absorptive and innovative capabilities of SMEs. Absorptive capabilities help SMEs to maximise opportunities, while innovative capabilities negatively influence SMEs’ tendency to maximise opportunities. The results failed to establish a direct relationship between mobile app usage and SMEs’ ability to maximise opportunities. The research outcomes indicate that SMEs in Lagos respond to opportunities innovatively but they seldom exhibit innovation in order to create opportunities. The heterogeneous nature of SMEs complicates any clear-cut narrative as to how SMEs in Lagos should employ mobile apps to create and maximise opportunities. However, mobile apps could induce innovation and, as such, impact significantly when developed and applied to the contextual requirements of SMEs. The research revealed the untapped potential of SMEs’ mobile app usage in Lagos

A firm-level analysis of ICT adoption in an emerging economy: evidence from the colombian manufacturing industries

This study examines ICT adoption among 3,759 Colombian manufacturing firms, and attemptsto identify the factors that are conducive to the adoption and usage of ICT at the firm level. Ourmajor findings are (i) that the adoption of a given information and communication technology isbetter facilitated when a firm is relatively large, has large human capital, engages in moreinnovative activities, and when a firm´s organizational structure is better aligned with the giventechnology; (ii) that positive associations between the key determinants and ICT adoptions aremore pronounced for small and medium-sized firms than for large ones, and (iii) that informationspillovers within industries is also a determinant of ICT adoptions by the firms.ICT adoption, Internet, Innovation, Organizational change

Policy Issues of e-Commerce Technology Diffusion in Southeast Nigeria: The Case of Small Scale Agribusiness

The benefits brought about by the emergence of e-commerce, e-business and other Information Communication Technologies (ICTs) applications have not been fully explored in the developing economies of the world. The less developed economies are still struggling to catch up with ICT application as opposed to its heavy deployment in the developed economies. Empirical evidence suggests that ICTs and other related technologies are increasingly emerging in the communities of the developing economies such as Nigeria. Rural actors engaged in the Agricultural industries (Agribusiness) feel that the implementation of ICTs can influence the development of new business processes and the way existing processes are organised. In the Southeast of Nigeria, which is a typical example of a less developed community, the impact of e-business technologies has yet to be determined. This paper identifies two classical traditional agribusiness supply chains and hence reports on the impact of e-commerce technology diffusion along the equilibrium of the supply chains, focusing on the elimination of intermediary actors from the chain. It provides an assessment of the Governments’ policies and strategies on e-commerce adoption for the sustainability of small-scale agricultural businesses. The paper examines the politics surrounding ICT implementations by actors engaged in the agribusiness sector. This research has motivated The South East State Government, in collaboration with the Federal Government, to give closer attention to their earlier policy of making Nigeria an ICT-enabled country

The role of e-commerce in the competitiveness of SMEs in developing economies: evidence from Nigeria

The aim of this paper is to understand the role of e-commerce in increasing the competitiveness of SMEs in developing economies. The study adopts a qualitative methodology which involves in-depth, semi-structured interviews and direct observation in order to derive answers to such questions as ‘why’ the system is adopted and ‘how’ the developing economy conditions influence the system. The study suggests that the adoption of e-commerce by small businesses in developing economies enhances customer relations and satisfaction, global awareness of product and services, market expansion, reduced market costs and increased competitiveness. Other findings indicate that increasing access to the Internet and changing lifestyle enable the success of e-commerce in developing economies. The main implication of the study is that small business owners should be encouraged to adopt e-commerce in order to enhance their market expansion and global competitiveness. The study is limited to the extent that it can be generalised to a wider population of small businesses

A New Socio-Economy in Africa? Thintegration and the Mobile Phone Revolution

Much has been written about the impacts of information and communication technology (ICT) in Africa and its transformational socio-economic potential. The penetration of mobile phones in particular has been particularly marked in recent years. This paper seeks to interrogate the hypothesis of transformation by examining the ways in which Africa is integrated into global mobile phone value chain, and the uses to which this technology is put on the continent. While mobiles are having significant, and sometimes welfare enhancing impacts, their use is also embedded in existing relations of social support, resource extraction and conflict. Consequently their impacts are dialectical, facilitating change but also reinforcing existing power relations. As Africa is still primarily a user, rather than a producer or creator of ICT, this represents a form of thin integration (“thintegration”) into the global economy, which does not fundamentally alter the continent’s dependent position.

Impact of computerized accounting information system on small and medium enterprises In Mogadishu, Somalia: the balance scorecard perspectives

Information, communication and technology (ICT) adoption has increased dramatically over time irrespective of organizations, be public or private, profit or not for profit organizations around the world. No doubt that ICT investment will spur economic growth as studied done by many countries. The African Union Agenda 2063 has acknowledged the importance of digital inclusivity for African countries to be on par with the rest of the world as an information society. African nation and Somalia particularly have still some challenges to deploy ICT on the concern of availability, accessibility and affordability. Nevertheless, in a business environment where businesses compete in the highly fragile market, ICT modernization in all business processes including accounting is a crucial tool for continuous improvement towards competitive services offered to customers. The implementation and adaption computerized accounting systems (CAIS) for any organization such as SMEs will enable the management and owners to improve decision making, internal controls and financial information, as well as enable financial reporting to be designed and processed on a standardized format and timely. It was reported that the use of inefficient information to support financial decision making and poor quality and reliability of financial information were part of the major SMEs challenges. Therefore, this study attempts to understand the usage of CAIS and its impact on the performance of SMEs in Somalia. The survey questionnaire is designed and distributed to selected SMEs in the capital city of Mogadishu, Somalia. The results of CAIS’s impact are discussed from four components of balanced scorecard namely financial, customer, internal processes and learning & growth perspectives. The results of this study may provide knowledge about the impact of usage CAIS for SMEs performance in Somali