Conference Paper

DIGITAL TECHNOLOGY ADOPTION AND SMALL, MEDIUM-SIZED ENTERPRISES (SMES) PERFORMANCE (A STUDY OF SELECTED SMEs IN YEWA SOUTH LOCAL GOVERNMENT, OGUN STATE).

This study examined the effect of digital technology adoption on the performance of Small and Medium-Sized Enterprises (SMEs) in Yewa South Local Government Area of Ogun State, Nigeria, with particular emphasis on social media and e-commerce technologies. The study was anchored on the Technology Acceptance Model (TAM),which explains technology adoption based on perceived usefulness and perceived ease of use. A survey research design was adopted, and data were collected through a structured questionnaire administered to SME owners and employees. Using Cochran’s formula, a sample size of 384 respondents was determined, while 345 valid responses were utilized for analysis. Data were analyzed using descriptive statistics and multiple regression analysis with the aid of SPSS version 23. The reliability of the instrument was confirmed with a Cronbach’s Alpha coefficient of 0.805. Findings revealed that social media and e-commerce exert significant positive effects on SME performance. The regression results indicated that social media (β = 0.272, p < 0.05) and e-commerce (β = 0.439, p < 0.05) significantly enhanced business performance, with e-commerce demonstrating a stronger influence. The model explained 74.8% of the variation in SME performance (R² = 0.748), while the ANOVA results confirmed the overall significance of the model (F = 246.520, p < 0.05). The study concludes that digital technology adoption significantly improves productivity, operational efficiency, market reach, and competitiveness among SMEs. It recommends increased investment in digital technologies, digital skills development, improved digital infrastructure, and supportive government policies to enhance SME sustainability and growth. Keywords: Digital Technology, Social Media, E-Commerce, SME Performance, Technology Acceptance Model