Impact of information and communication technology on productivity of small and medium enterprises in Oyo state, Nigeria

The study assesses impact of Information and Communication Technology (ICT) on productivity of Small and Medium Enterprises in Oyo State, Western Nigeria. It also determines if Productivity Paradox holds among the Small and Medium Enterprises. The study sample consisted of 420 Small and Medium Enterprises drawn across the three geopolitical zones of Oyo State, Western Nigeria. Primary data, collected through a carefully drawn Questionnaire were analysed using Logistic Regression Analysis. With exp. (β) =1.254 the logistic regression results indicated that ICT had about 25% impact on productivity. This implies positive but weak impact of ICT on the productivity of the Small and Medium Enterprises. Non-ICT positive correlates of productivity are entrepreneur's ability (EABT) 12.18, staff quality (SQUA) 5.45, banking and credit facilities (BACF) 3.09 and government support (GOSP) 1.41. However it is only EABT and SQUA that are significantly different from zero at 1% and 5% levels respectively. Competition (COMP) is both negative and not significant. Other results of the study showed that Productivity Paradox did not hold among the Small and Medium Enterprises. Recommendations made in line with the findings, were to encourage greater adoption of ICT and boost SMEs productivity.