Digital Technology and Performance of Small and Medium Scale Enterprises in Owo Metropolis, Ondo State, Nigeri

Abstract

This study investigated the influence of digital technology on the performance of small and medium-scale enterprises (SMEs) in Owo Metropolis, Ondo State, Nigeria, with particular focus on digital literacy, digital acceptability, and digital-induced growth. A descriptive survey design was employed, and data were collected from 100 owners and employees of selected SMEs using a structured questionnaire. The reliability of the instrument was confirmed with a Cronbach’s Alpha of 0.894, indicating strong internal consistency. Data were analysed using descriptive statistics and multiple regression analysis. Results show that digital literacy significantly and positively affects SME performance (β = 0.3282, p = 0.027), highlighting that the ability to effectively utilise digital tools enhances productivity, operational efficiency, and customer engagement. Conversely, digital acceptability (β = 0.1001, p = 0.525) and digital-induced growth (β = 0.0794, p = 0.569) did not have a significant effect, suggesting that the mere availability or acceptance of digital tools does not guarantee improved performance. The findings emphasise the importance of building digital skills among SME operators to translate technology access into tangible business outcomes. The study recommends that government agencies, business associations, and technology providers implement targeted capacity-building programmes to strengthen digital literacy and promote effective adoption of digital solutions among SMEs in Owo Metropolis.