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The Challenges of the Internet in Today's Nigeria Business Environment

The Challenges of the Internet in Today's Nigeria Business Environment

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DEDICATION

This research material, titled “The Challenges of the Internet in Today's Nigeria Business Environment” is dedicated to God for His boundless grace and guidance. It is also a tribute to all computer enthusiasts whose contributions made my research journey smoother and enriched my documentation process, making the experience truly fulfilling.



ACKNOWLEDGEMENT

I am profoundly grateful to everyone who contributed to the successful completion of this project. I am especially grateful to my Supervisor (Name), the Head of Department (Name), and the Lecturers in the Department of Business Administration and Management (BAM) for their invaluable guidance and support. I also acknowledge the contributions of authors and scholars whose works on The Challenges of the Internet in Today's Nigeria Business Environment provided essential insights. Special thanks go to my study area (and any funding organizations, if applicable) for their financial assistance. I am equally thankful to stakeholders, including mentors, teachers, and colleagues, for their encouragement and support. Finally, I deeply appreciate my family and friends for their patience and unwavering support throughout this journey. Your contributions have been instrumental in making this research a reality.



TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies
    • 2.5 Research Gaps
    • 2.6 Summary of Literature Review

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”


    The Challenges of the Internet in Today’s Nigeria Business Environment

    CHAPTER ONE

    General Introduction

    1.1 Background to study

    A study by BMG et al. (2015) found that almost all SMEs used the Internet for commercial purposes, but the intensity of use varied with size. The most common use of the Internet was to be in contact with customers. Although the use of e-commerce is increasing, it was still much less frequent: only 20% of turnover came from this source in 2013 and only 22% of companies made online sales. A quarter of SMEs reported that they did not have basic digital skills; There was a positive relationship between the numerical ability level and the growth of the rotation. SMEs have an attitude barrier to developing an online presence, a lack of awareness of the benefits and opportunities available, and a lack of understanding of online security threats.

    The integration of digital learning throughout the education system is a long-term solution, but there is also a clear need to improve digital capabilities in the short term. One of the keys to increasing the capacity to take advantage of the opportunities offered by digital technology is to deliver digital literacy courses, implement outreach initiatives through existing private local and tertiary sector networks, and improve cyber security. In a competitive and changing environment, SMEs have changed the way they work by improving the quality of their businesses in order to compete in regional and global markets. Digital technologies therefore play an important role in the growth of SMEs. Internet adoption by large and small firms in developed countries has increased considerably (Al-Debei and Al-Lozi, 2012). However, the rate of Internet adoption in SMEs in developing countries has remained relatively low (Asare et al., 2012, Mokaya, 2012). Internet innovation has contributed to improving organizational performance and creating a competitive advantage for organizations in developed and developing countries (Al-Debei and Al-Lozi, 2012). Global competitiveness and the need to stimulate growth are compelling reasons why SME leaders must adopt the Internet (Ghobakhloo and Tang, 2013). Researchers have conducted studies on the factors influencing Internet adoption by SME leaders in developing countries such as Nigeria (Apulu and Latham, 2011, Asare et al., 2012, Mokaya, 2012). However, few studies have been conducted on the factors that drive SME leaders to embrace the Internet as a business strategy to gain competitive advantage in the global marketplace.

    1.2 Statement of the Problem

    Although the government and other development partners have implemented a series of initiatives on digital technology, it seems that SMEs are very little aware of the changes that technology inevitably entails in terms of business growth and how they should work. Adapt to this change. The approach has been changed from the use of technology to the understanding of technologies that can be used for specific commercial purposes and how best to apply them in a variety of contexts. While Nigerian SMEs are enthusiastic about the changes in the use of technology in business, the challenges are many, including lack of network infrastructure and slow or unstable wireless access. Some SMEs do not have the bandwidth needed to support Internet activity in their businesses. This is a major challenge in the process of communication between staff and management. Other challenges are poverty, lack of knowledge and lack of training in the use of digital technologies. In addition, ensuring that technology is used to enable and promote effective business practices is also a significant challenge. Therefore, it is necessary to study the effects of the adoption of digital technology on SMEs in Nigeria. However, this study will examine Internet challenges in the growth and development of small businesses in urban cities of Nigeria.

    1.3 Research Objectives

    The specific objectives to:

    1. To evaluate the relationship that exists between Internet and the profitability of Business In Nigeria
    2. To examine the major constraints of Internet adoption by Business In Nigeria
    3. To determine the effect of Internet system on the growth of Business In Nigeria

    1.4 Research Questions

    The following are some of the questions which this study intends to answer:

    1. What is the relationship that exists between Internet and the profitability of Business In Nigeria?
    2. What are the major constraints of Internet adoption by Business In Nigeria?
    3. What are the effects of Internet system on the growth of Business In Nigeria?

    1.5 Hypotheses of the Study

    The following are some of the questions which this study intends to answer:

    1. Evaluate the relationship that exists between Internet and the profitability of Business In Nigeria
    2. There is no significant relationship between Internet system and the profitability of Business In Nigeria.
    3. Business In Nigeria are not faced with any constraints in the adoption of Internet system.
    4. There is no significant relationship of Internet system on the growth of Business In Nigeria.

    1.6 Significance of the Study

    Quite a number of researches have been carried out related to this study such as Adewole and Akanbi (2004) in which they examined the role of information and communication technology investment on the profitability of small medium scale industries – a case of sachet water companies in Oyo state, Nigeria. Similarly, Rufai (2014) studied the impact of communication technologies on the performance of SMEs in a developing economy, a case study of Nigerian SMEs. However, this research is distinct from various similar researches such that it examines the impact of internet on growth of small and medium enterprises. This research tends to be very beneficial to small and medium enterprises, stakeholders in the country, Nigeria economy as a whole and also adds to the existing literature concerning this topic.

    1.7 Scope of the Study

    Due to financial constraints, time and mostly academic workload, this research will not be able to cover the entirety of SMEs in Nigeria. Hence, this study deals with SMEs operating in Port Harcourt State, Nigeria only within the last five years.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the conceputal review, theoretical framework, the review of related literature …

    CHAPTER FIVE

    Conclusions And Recommendation

    5.1 Conclusions

    From this study, it is established that internet is a potential driver of productivity growth among small and medium entrepreneur. The study also proves wrong the Productivity Paradox which states that there is negative relationship between ICT investment and organisational productivity.

    The study nevertheless observed that ICT impact on productivity of small and medium enterprises is currently weak. This may be improved if government promotes training, provides business development and support services, deplores high speed internet connectivity in appropriate locations where the entrepreneurs can access same. If and when these and other recommendations are taken and implemented, productivity in the SME sector will rise, more revenue would be generated while cost of operation and production would, in the long-run reduce. In the final analysis, business survival would be enhanced, more earnings would be made by the entrepreneurs and consequently there would be increase in productivity among small and medium entrepreneurs.

    5.2 Recommendations

    The recommendations here are made pursuant to the findings discussed in the foregoing sections.
    Whereas most of the small and medium entrepreneurs in this study indicated that other non-ICT factors like entrepreneurs‟ ability, staff quality, banking and credit facilities, competition and government support also have positive impact on productivity (table 4.6), it is necessary to isolate government support from the rest. Government should always take the lead in the provision of Business Development and Support Services (BDSS). For the purpose of raising impact of ICT on productivity of small and medium enterprises, government especially through National Directorate of Employment (NDE) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), should provide both training and support that would change entrepreneurs‟ orientation towards the use of ICT in their operations. Such training can be organised on zonal trade association basis.

    Secondly, most students in secondary schools and tertiary institutions are more ICT – compliant than older adults. Ironically most of the youths in these educational institutions are not in business yet while the adults in business are mostly ICT – averse. It is therefore recommended that ICT in school curricula should be specific and emphatic on ICT application in business operations. This will guarantee a large crop of the ICT – compliant future business executives.

    Thirdly, government and trade associations should explore possibility of deploring high – speed/connectivity internet facilities for the use of small and medium entrepreneurs. One way through which this can be done is by encouraging establishment of industrial parks. This will enable business organisations to cluster appropriately to use ICT facilities. In addition, government should make plans to reduce cost of access to the internet facilities by the entrepreneurs. This may be achieved through a pragmatic cost – sharing formula between government and trade associations and among entrepreneurs that operate in the Industrial Parks.

    Fourthly, efforts should be made by government to liberalise access to bank loans and credit facilities. It is very clear that ICT especially the hardware aspect is very expensive. Although costly in the short-run, the long-run benefits of higher productivity level and increased revenue will ultimately lead to higher profit. This will not only enhance business survival but will also reduce poverty amongst entrepreneurs.

    Finally, government should put greater investment in the real sector, since ICT impact on productivity is more pronounced there than in Distribution and Service Sectors. Encouragement recommended may come through robust incentive policies which may include tax holiday, liberal export policy, import – substitution policy, provision of infrastructural facilities among others.

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