The Significance of Information and Communication Technology for SMEs in Rural Communities

Abstract

This research examines the significance of information communication technology (ICT) to the growth of Small and Medium Scale Enterprises (SMEs) in rural Ghana using a study of some selected SMEs in the Bawku Municipality in the Upper East region of Ghana. One hundred SMEs were sampled using simple random sampling of small businesses operating in the rural areas within the Bawku municipality. The study found out that ICT has contributed to the growth of SMEs by decreasing cost of communication and transaction, and enhancing better relations with customers and suppliers. Though ICT awareness of the benefits of ICT to SMEs is high among SME owners in the Bawku Municipality, its patronage and usage is still low. High cost of hardware and software infrastructure, non-availability of support systems and lack of expertise are some of the barriers to the adoption of ICT among SMEs. The author recommends recruiting and training (or outsourcing) of ICT expertise in SMEs, SMEs should also be encouraged to use mobile money wallets for cash transactions. Educational and institutions should also look at developing cheaper and more accessible ICT applications primarily for SMEs.

Resource-based framework for assessing cooperative institutional’s global competitiveness as small medium enterprise (SME)

“…The competitive advantage could materialized in the form of capability to produce products and/or services with lower price and better quality from competitors. In the context of SMEs, digital technology, which becomes the main focus of innovation, found to be affecting the firm's performance (Asunka, 2016). It is achieved through reducing communication and transaction cost, and enhancing relationship with consumer and supplier (Hendriarto, 2021;Ansari et al, 2021).…”

“…In the context of digital transformation, digital capability also significantly giving positive influence to competitive advantage, given the moderation of firm's digital innovation (Adeoye et al, 2019;. Aside from moderating relationship in digital capability, several research found to support the discourse of positive relationship between innovation and competitive advantage (Paladino, 2007;Asunka, 2016;Day, 1999). Based on the explanation above, there are a linking model:…”

Digital Innovation and Capability to Create Competitiveness Model of Cooperatives in Bandung, Indonesia

“…(Hartono & Halim, 2020;Khin & Ho, 2019). In addition to moderating the relationship between digital capabilities, the discourse on the positive relationship between innovation and company competitiveness is also supported by research conducted by (Asunka, 2016;Hana, 2013). Based on the description of the relationship between variables, the conceptual framework as a model for this research can be seen in Figure 2.…”

“…In the context of MSMEs, digital technology which is the focal point for digital innovation contributes to the growth of business performance. This contribution was achieved by reducing communication and transaction costs, as well as improving relationships with consumers and suppliers (Asunka, 2016).…”

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