Information Technology and the Business Communities

Information Technology and the Business Communities: A Case Study of Small-scale Business Enterprises in Nigeria


Due to globalization of the economy, emergency of information technology, growth of the Internet and other communication network, growing diversity of business transactions and increased competition, companies are changing the way they communicate with new processes that sharpen business performance. The Internet is becoming the foundation for new business models, process and new ways of knowledge distribution (Laudon K.C and J.P. Laudon, 2000).

                Small-scale enterprises now use the Internet and networking technology to conduct more of their work electronically, reliable linking factories, offices and sales forces around the globe (Dave C. 2000). This communication evolution is governed by applied infrastructures with converged services and integrated application (Lucas H.C and B. Jack, 1994). The convergence of information technology is an important trend influencing both current and future markets, industry and technology (James, A.O, 2004). Companies such as the shops, banks and institution interviewed, are extending these networks to suppliers, customers and other groups outside the organization to enable them respond instantly to customer demands and market shifts.

Undoubtedly, information technology is bringing about changes in organization that make firms even more dependent than in the past when it depends solely on the knowledge, learning and decision making of individual employees. Besides, customer service, operation, products and marketing strategies, and distribution are heavily dependent on information technology (Brain K and C. Stacey, 2001).

This research work examines the impact of information technology on the economics of small-scale business enterprises. This is to ascertain the level at which information technology has transformed business processes for specific and applications; efficient business management, crime rate reduction, job creation and improved security of information systems. This will help make available the right kind of information at the right time place for optimum utilization of available resources to enhance the quality of life in the human society.


Material and Method: In the study, a statistical approach was adopted. Responses from the various business/institutions; shops, factories, eatery, markets, banks, fuel station, bakery, schools, cyber cafe, hospital, poultry, boutique, salon, phone call centers, guest houses and sport centers via the questionnaire in some selected cities in Nigeria for over 11 months in 2008 were technically examined and conclusion drawn in line with the hypothesis formulated.


Theoretical Background

The discipline of information theory came into focus with Claude E. Shannon’s classical paper, “A mathematical theory of communication” in 1948. This theory deals with the amount of information and does not handle the meaning of information. Similarly, the theory failed to provide necessary help in the design of an information system. As a result, the initial interest on information theory declined. However, the discipline starts to gain widespread acceptance only in the last few years. This is attributed to the fact that information technology now provides the support necessary to build an information system that serves best for some specific and application (David M.K, 1992).

                Information technology, as defined by the Information Technology Association of America (ITAA), is the study, design, development, implementation, support or management of computer based information systems, particularly software applications and computer hardware. Basically, information technology deals with the use of electronic computers and computer software to convert, store, protect, process, transmit and securely retrieve information. Examples of information technology include; personal digital assistant, personal computers, telephones, televisions etc (Brain K.C and C.S. Stacey, 2001).

                Today, the terms information technology has ballooned to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The end objective is to make the effective and efficient use of information to resolve uncertainly and enhance productivity at each level; individual, society and government (Charlse W.L.H, 2001). On this theoretical background is the hypothesis formulated.

                Hypothesis: Two types of hypothesis were formulated in this study; Null hypothesis (Ho) and Alternatively hypothesis (H1).

Null Hypothesis: Information Technology does not have positive impact on small-scale business enterprise.

Alternatively hypothesis: Information technology has positive impact on small-scale business enterprises.


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