Effect of Information Technology on the Market Share of Small and Medium Scale Enterprises (SMEs) in Lagos State, Nigeria

Abstract

The study examines the effect of information technology on the market share of small and medium scale enterprises (SMEs) in Lagos state. The survey research method was utilized in selecting three hundred and eighty-one respondents comprising of owners and managers of selected SMEs within Lagos state. Questionnaires were used as a data collection tool administered on a sample of 381 out of which 366 were returned from samples. Data was analyzed using multiple regression. Two hypotheses were formulated and tested at 0.05% level of significance to check for the truthfulness and falsity of the dependent and independent variables using descriptive and inferential analysis through Statistical Package for Social Science (SPSS). Findings from the data analyzed show that the use of information technology by management of SMEs helps to improve market share thereby increasing the effectiveness of management. The study therefore recommends that small and medium scale enterprises should focus on variables used such as IT knowledge which has been identified as a major factor that could influence the performance of small and medium scale enterprises.