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CHAPTER
ONE
INTRODUCTION
1.1
Background
of the study
Information technology is an area of managing and employing
technology into production activities of an organization in order to achieve
high productivity. The role of information technology cannot be out aside
because it contributes to economic activities through increase in aggregate
productivity which will cause improvement on economic growth and development.
IT is the bedrock for organization and national survival and development on a
rapidly changing global environment. Adewoye
and Akanbi( 1999) stated that ICT is a complex and heterogeneous set of goods,
application and services used to produce, distribute, process and transform
information.Technological development have
changed the majority of wealth creating work from physical effort based to
knowledge effort based and enable micro-businessenterprises to know the value
of IT to their firms by offering business opportunities over competitors in the
market. For a micro-business to survive in the global competition or market, the
firm must improve and acquired IT skills in the production processes so as to
achieve high rate and improvement on workers’ productivity. Productivity is a
measure of the efficiency of production. Employing IT into production
activities will enhanced increase in workers’ and economic productivity, the
upward shift of aggregate economic productivity will leads to increase in gross
domestic product.Micro-businessplays a crucial
role in economic activities and development of a nation. Economic literature
shows that IT is important driver of productivity and growth. Pollard claims
that micro-business would need high quality IT and must always provide superior
value product better than competitor, when it comes to quality, price and
service. Using of IT by micro-business enhance expansion and enable small and
medium enterprises to compete with multinational enterprises. In a
technological environment enterprise (Multinational, and SMEs) make efficiently
and effectively utilize economical resources by producing standard technology
goods and services, transform human effort and economic resources to produce
the market needs.Experiences from practices of Businesses
over the world and hypotheses derived from institutional economics and the
theory of collective action, as observed by( Manmood and Man, 2008;Oladejo and
Yinus,2013), suggest that taking advantage of Information Technology diffusion
is possible for business organization and adoption of IT can provide
organization with valuable information, improved performance, improve
relationships with customers and suppliers, increase efficiency and reduce cost
of production among others. Evidence also shows that full-size business organization
has taken the opportunity of IT to gain the edge over their competitors unlike
the micro-business.Nigeria
government should provide technical environment to support and help
multinational enterprises and micro-business to better use of IT and increase
the country’s productivity, growth and development through investment in IT.Managers
now realize that information technology can be used as an engine to speed up
processes, eliminate or reduce paperwork, increase the quality of output and
service delivery, decrease storage costs, and enhance information sharing and
communication. They also realize that they have to achieve not only management
/ staff wide computer literacy, i.e. knowing how to locate, analyze, store and
use information. All staff in modern organizations needs to be able to search
and gather data from different sources, analyze them, select the relevant ones
and organize them in such a manner as to allow them make decisions based on the
information. These being the case how is Nigerian micro-business Enterprises
faring in joining the information technology? What is the micro-business doing
to increase their productivity and efficiency through the use of IT? What
constraints or challenges are organizations facing in overhauling their
management? In what ways exactly is ICT infrastructure enhancing efficiency in
the Nigerian micro-business? These and related questions structure and the
argument of this study
1.2 STATEMENT OF THE PTOBLEM
Micro-business
entrepreneurs in Nigeria engage in business practices for survival as they are
local in their nature of operation but they need to forge ahead only through
global integration even though the local institutional frame work are not stead
fast encouraging the development of micro-business enterprise towards the world
economy as those of other countries. Thus, the problem that is identified for
this study is how micro-business scale businesses can be developed to meet the
challenges presented by globalization in the face of available infrastructure
and utility in Nigeria through the use of Information Technology for their
productivity.
1.3 OBJECTIVE OF THE STUDY
The
main objective of this study is information technology and the productivity of
micro-business in Nigeria. But for the
successful completion of the study; the researcher intends to achieve the
following sub-objectives;
1. To ascertain
if micro-business increase their productivity and efficiency through the use of
IT
2. To ascertain ways IT enhancing efficiency in
the Nigerian micro-business
3. To
ascertain the relationship between information technology and the productivity
of micro-business
4. To ascertain
the different areas of micro-business where the use of IT can improve micro-business
productivity
RESEARCH HYPOTHESES
The
following hypotheses were postulated and tested;
H0:micro-business
does not increase their productivity and efficiency through the use of IT
H1: micro-business
increase their productivity and efficiency through the use of IT
H02:there
are no relationship between information technology and the productivity of
micro-business
H2:there
are relationship between information technology and the productivity of
micro-business
1.5 SIGNIFICANCE OF THE STUDY
It
is believed that at the completion of the study, the findings will be of
benefit to micro-business operators. The study will help provide needs to the
use of information technology in micro-business enterprises. The study will
also be of great benefit to the researchers who intends to embark on research
on similar topics as it will serve as a guide. Finally, the study will be of
great importance to academia’s, lecturers, teachers, students and the general
public.
1.6SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers information
technology and the productivity of micro-business in Nigeria. The researcher
encounters some constrain which limited the scope of the study;
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher
is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not
enhance wider coverage as the researcher has to combine other academic
activities and examinations with the study.
c) Organizational privacy:
Limited Access to the selected auditing firm makes it difficult to get all the
necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
INFORMATION TECHNOLOGY: Information technology (IT)
is the application of computers to store, study, retrieve, transmit, and
manipulate data, or information, often in the context of a
business or other enterprise. IT is considered a subset of information and
communications technology (ICT).
PRODUCTIVITY: The effectiveness of productive effort, especially in
industry, as measured in terms of the rate of output per unit of input.
MICRO-BUSINESS: A business that operates on a very small scale.
1.8 ORGANIZATION
OF THE STUDY
This research work is
organized in five chapters, for easy understanding, as follows
Chapter
one is concern with the introduction, which consist of the (overview, of the
study), historical background, statement of problem, objectives of the study,
research hypotheses, significance of the study, scope and limitation of the
study, definition of terms and historical background of the study. Chapter two
highlights the theoretical framework on which the study is based, thus the
review of related literature. Chapter three deals on the research design and
methodology adopted in the study. Chapter four concentrate on the data
collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and
recommendations made of the study
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