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Articles

CJBSS: VOL. 14, NO. 2, DECEMBER 2023

Strengthening the Impact of Technological Changes on the Performance of Small and Medium Enterprises in Lagos State, Nigeria: Strengthening the Impact of Technological Changes on the Performance of Small and Medium Enterprises

Submitted
June 1, 2024
Published
2023-12-31

Abstract

This study investigates the impact of technological changes on the performance of small and
medium enterprises (SMEs) in Lagos State, Nigeria. The problem statement addresses the need
to understand how technological advancements influence various aspects of SMEs' performance,
including revenue growth, profitability, and customer satisfaction, in the context of a rapidly
evolving digital landscape. The purpose of the study is to examine the relationship between
technological changes and SME performance indicators, aiming to provide insights that can
inform strategic decision-making and policy formulation for SME development in Lagos State.
Employing an explanatory research design, the study utilizes a sample comprising six Local
Government Areas (LGAs) within Lagos State, with 30 questionnaires administered to SME
owners in each LGA, totaling 180 questionnaire copies. Out of these, 153 valid responses were
obtained for data analysis. Content validity was employed to assess the research instrument's
validity, while internal consistency was confirmed with a Cronbach alpha of 0.75, indicating
instrument reliability. The study employs descriptive and inferential statistics to test hypotheses
and analyze the data. The findings reveal significant positive relationships between technological
changes and SME performance indicators, highlighting the transformative potential of
technology adoption for SMEs in Lagos State. The study concludes by emphasizing the
importance of technological innovation and adaptation for enhancing SME competitiveness and
sustainability, with implications for policy, practice, and future research. Recommendations
include fostering digital literacy, enhancing access to technology infrastructure, and
implementing supportive policies to facilitate SMEs' technological adoption and innovation.