Implication of ICT use on productivity and regional development planning among small scale enterprises in Ondo state

  • Afolabi Francis Fatusin Adekunle Ajasin University
  • Gbenga John Oladehinde Obafemi Awolowo University
Keywords: ICT usage, small scale enterprises, regional development, Ondo State, Nigeria, developing country


One of the reasons often cited for underdevelopment of African cities and regions is low application of smart technology to improve means of production. This often led to inefficiency which is ultimately reflected in space. This paper investigated the level of ICT usage among small scale manufacturing enterprises in Ondo State. The study also investigated intra-regional variations in use of smart technologies in the industrial subsector and compared same across the three regions of the state. A sample of 352 enterprises was taken from three senatorial regions and nine settlements which were purposively sampled and interviewed using questionnaire. The production and operational system of these firms were observed. The data collected were analysed using descriptive and inferential methods. The study established that proportion of ICT users concentrated more in Ondo Central 45.7% than Ondo south (28.7%) and Ondo north (25.6%). It was also discovered that formal small scale enterprises made more use of ICT products, compared with those in the informal sector. Moreover ICT use among enterprises were urban biased as 91.2% of enterprises in this category were located in major towns of Akure, Okitipupa and Ikare, 8.1% in minor towns of Obaile, Ode Aye and Ugbe, with villages of Aponmu Iboropa and Ikoya being relatively insignificant (0.8%). The study established that enterprises that made use of smart technologies tend to be more efficient in terms of production and marketing especially in identification of new markets, networking, subcontracting, security and other linkage benefits. Also, regional industrial development entails not only quantitative growth of industries, but an industry that embrace a new opportunities in innovation, and technology especially in management, record keeping, production, decision making etc.


Arikawe, A. (1985), The equity Principle and Central Plan Allocation in the manufacturing Sector: The Nigerian Third National Development Plan. Nigerian Journal of Economic and Social Studies, vol. 2, no. 1, pp. 61–89.

Akomea-Bonsu, C. and Sampong, F. (2012), The impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi Metropolis, Ghana, West Africa. European Journal of Business and Management, vol. 4, no. 20, pp. 152–158.

Applah, M. K. and Opare, D. (2016), The Drivers and Challenges of ICT usages among SMEs in Ghana. The International Journal of Business and Management, vol. 4, no. 4, pp. 473–479.

Applah, M. K., Anin-Agyel, J. and Manu, E. P. (2016), Electronic Commerce adoption among SMEs in Ghana: Manifestation from Wa-Municipality. The International Journal of Business and Management, vol. 4, no. 4, pp. 480–484.

Chen, K. C. and Hamdan, M. (2014), An Exploratory Study of Information Technology Adoption by SMEs in Brunei Darussalam. World Journal of Social Sciences, vol. 4, no. 2, pp. 186–196.

European Union Report (2005), Definition of Micro Small and Medium-Sized Enterprises. Commission Recommendation of 3rd April, 1996 Concerning The Definition of Small and Medium-Sized Enterprises. Official Journal L107, 30.04.1996.

Eze, N. M., Ayigbe, S. F., Eberechi, O. O. and Jordan, N. (2015), Information and Communication Technology Applications in small and Medium scale enterprises (SMEs) funding in Nigeria: an Impact assessment. International Journal of Finance and Accounting, vol. 4, no. 5, pp. 293–303.

Kuyoro, S., Awodele, O., Alao, O. and Omotunde, A. A. (2013), ICT solution to Small and Medium Scale Enterprises (SMEs) in Nigeria. International Journal of Computer and Information Technology, vol. 2, is. 4, pp. 785–789.

Liedholm, C. and Chuta, E. (1985), Employment and Growth in Small Scale Industry. Empirical Evidence. Macmillan Press, UK.

Olatunji, O. (2015), The Impact of Information Communication Technology on Small and Medium Scale Enterprise Productivity in Nigeria. Business Economics and Tourism, Vaasa University of Applied Sciences, Finland.

Olayiwola, L. and Adeleye, O. (2005), Rural Development and Agro-Industrial Promotion in Nigeria: Concepts, Strategies and Challenges. Journal of Social Sciences, vol. 11, no. 2, pp. 91–96.

Olayiwola, L. and Fatusin, A. (2011), An analysis of Distributional pattern and Locational factors of Small Scale Industries in Akoko Region of Ondo State. Tropical Journal of Built Environment, vol. 1, no. 1, pp. 107–129.

Omisakin, I. S. (1999), Factors Influencing Success and Failures of Enterprises in the Informal Sector. Nigerian Institute of Social and Economic Research, Ibadan, Nigeria.

Rufai, A. I. (2014), The Impact of Communication Technologies on the Performance of Smes in a Developing Economy: Nigeria as a Case Study. The Electronic Journal of Information Systems in Developing Countries, vol. 65, no. 7, pp. 1–22.

How to Cite
Fatusin, A. F., & Oladehinde, G. J. (2018). Implication of ICT use on productivity and regional development planning among small scale enterprises in Ondo state. Agricultural and Resource Economics: International Scientific E-Journal, 4(1), 5-19.