THE IMPACT OF DIGITAL TRANSFORMATION ON NIGERIAN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) IN THE GLOBAL BUSINESS LANDSCAPE
DOI:
https://doi.org/10.11113/jm.v47.478Keywords:
Digital Transformation, Small and Medium-sized Enterprises (SMEs), Competitiveness, Nigerian SMEs, Global Business LandscapeAbstract
Small and Medium-sized Enterprises (SMEs) are pivotal economic entities, and their adaptability in an evolving global business landscape is integral to sustainable growth. This study delves into the profound influence of digital transformation on Nigerian SMEs, offering a comprehensive analysis of the extent to which digitalization shapes their competitiveness, operations, and associated challenges. Employing a quantitative research approach, data from a diverse sample of Nigerian SMEs is collected to assess the relationship between digital transformation and SME outcomes. Demographically, the surveyed SMEs portray a multifaceted distribution across various industries, business sizes, geographic locations, annual revenues, and years in operation. A substantial proportion actively integrates digital tools and technologies into their operations, underscoring their recognition of the strategic value of digitalization. Perceived benefits of digital transformation encompass amplified operational efficiency, extended market access, innovation, elevated customer satisfaction, cost savings, and streamlined internal processes. However, challenges, notably financial constraints, a dearth of digital skills among employees, and regulatory barriers, reflect the multifaceted nature of obstacles faced by SMEs in their digital transformation journey. The study establishes a significant relationship between digital transformation and SME competitiveness. SMEs acknowledge its role in amplifying their global market reach, augmenting their competitiveness on a global scale, strengthening their competitive position within industries, nurturing international partnerships, expanding market share, and enhancing brand visibility in global markets. In essence, this research posits that digital transformation plays an indispensable role in the growth and competitiveness of Nigerian SMEs within the global business landscape. The findings serve as a cornerstone for informed decisions, strategies, and interventions to augment the digital capabilities of Nigerian SMEs, fostering their resilience and competitiveness in an increasingly digital world.
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