INFLUENCE OF INFORMATION AND COMMUNICATION TECHNOLOGY ON FINANCIAL PERFORMANCE AND PRODUCTIVITY OF MANUFACTURING COMPANIES IN SOUTHWEST NIGERIA
Keywords:
Information and Communication Technology, Organisational Productivity, Financial Performance, Manufacturing Firms, Southwest Nigeria.Abstract
Adoption of Information and Communication Technology (ICT) has become increasingly vital for enhancing manufacturing firms’ efficiency and competitiveness, however, evidence on its effects in developing economies remains inconclusive. This study investigated the influence of ICT use on the financial performance and productivity of manufacturing companies in Southwest, Nigeria. The theoretical framework of this study was based on Resource Based View (RBV) and Growth Accounting. The study adopted mixed method, and data were sourced from interviews, and secondary financial data. Findings show that ICT use has a significant positive influence on organisational productivity, and also contributes significantly to productivity beyond the effects of labour and fixed assets, this indicates the role of ICT as a strategic organisational resource. However, secondary financial data result shows there is no statistically significant direct relationship between ICT use and short-term financial performance indicators. This suggests that although ICT enhances operational productivity, financial benefits may be delayed, indirect, or dependent on complementary organisational capabilities and effective strategic alignment. It was therefore concluded that ICT is a critical driver of productivity of Nigerian manufacturing companies, however, for productivity gains to translate to improved financial performance, there is need for managerial competence, sustained investment, and process integration.References
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