The Impact of Communication Technologies on the Performance of SMEs in a Developing Economy: Nigeria as a Case Study

Informed by Social Shaping Theory (modified), this paper presents a research that examines the impact of communication technologies (mobile telephony, personal computer and internet facilities) on the performance of small and medium businesses in Lagos state, Nigeria. Results indicate that SMEs operating in different socio-economic settings present varying performance results from the use of communication technology tools. The study was undertaken through a firm survey and also a number of semi-structured interviews with purposively selected 100 SMEs operating in both the affluent and disadvantaged districts of the city. Using basic descriptive statistics and thematic analytical techniques for the survey and interview data respectively, major findings suggest that: 1) as communication technologies positively impact the performance of SMEs, existing socio-economic factors within the districts where the firms operate also influence the choice of communications technology and significantly shape its impact on business performance; 2) class differences with respect to income and education disparity, as well as communication habits in the affluent and disadvantaged communities account for different outcomes in the business performance of firms; 3) the Impact of communication technologies on the local economy seems to be more prominent and significant in regard to the performance of firms operating in the affluent districts compared to the performance of firms operating in disadvantaged districts