INFLUENCE OF ICT USE ON SERVICES INNOVATION AMONG SMES IN OGUN STATE, NIGERIA

ABSTRACT

The activities of services innovation among SMEs basically involve frequent use of new ideas for services and also seeking new ways of modifying services using creative and customer-oriented approach. These days the activities of the SMEs were not bringing in much of the anticipated goals in terms of economic values and neither does it contribute to increase the employment opportunities for the teeming population as part of the core values of the SMEs and this might be partly due to their low innovative approach. In most of the European nations, use of ICT has proven to be a major source of SMEs attainment of innovation and it has also helped to transform their economy to a higher level. Against this background, this study examines the influence of ICT use on service innovations among firms in Ogun State, Nigeria. The study adopted survey research design. The population of the study comprised 415 operators of SMEs employed by 54 SMEs in the state. A sample size of 204 was determined using the Taro Yamane formula. A proportionate sampling technique was used to select respondents. A structured and validated questionnaire was used to collect data. A return rate of 100% was achieved. Data were analysed using descriptive and inferential (simple linear and multiple regression) statistics. Findings revealed that ICT use (R=.655, R²=.430, p<.005) had a positive significant influence on service innovation of SMEs in Ogun State, Nigeria. The study concluded that ICT use is an important factor that influence service innovation among SMEs in Ogun State, Nigeria. It recommends that the management of SMEs should make adequate provision of ICT tools and other infrastructures that aid business process in order to attain high level of innovativeness. SMEs in Ogun State should make more provision for reward, improved compensation, and additional incentives for staff so as to improve their commitment to service.

Keywords: ICT use, purpose, frequency, SMEs, services innovation, digital economy, constraints etc.