Abstract:
Small and Medium Enterprises are designed for self-help, empowerment and employment opportunities, and are becoming dynamic; hence, the need to urgently adopt current Information and Communication Technology to enhance better performance of businesses. This study examines the effectiveness of Information and Communication Technology Application and Operational Performance of Small and Medium Enterprises in Ondo State, Nigeria. A descriptive research design was adopted to explain the relationship between ICT application and operational performance of SMEs. The study was carried out in three (3) local government, namely: Akure-South, Okitipupa and Akoko South-West, using non-probability sampling technique, with a sample of two hundred (200) structured questionnaires administered. Only one hundred and ninety-one (191) copies of questionnaires were retrieved for the analysis study representing 95.5% of the total questionnaires distributed. The data collected were analysed using both the descriptive and inferential statistics such as frequency and percentage distribution, mean score ranking, standard deviation statistics and Hierarchical Multiple Regression, which was also used to test the hypothesis. Findings from the study revealed that ICT application by SMEs shows that the most commonly used of the ICT devices are: telephone or mobile (Mean = 4.60), internet facilities (Mean =3.81) laptops (3.54), smart cards with (Mean = 3.45), printer (Mean = 3.27), photocopier (Mean = 3.17), Point of Sales (Mean = POS) (3.14), and so on. It was further revealed that ICT application has a significant positive effect on the operational performance of SMEs in the study area (β = .411, p (0.00) < .05). In conclusion, the study therefore, recommended that SMEs in the study area should explore more ICT infrastructure relevant to their business area for the purpose of serving the customers better and gaining competitive advantage.
