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RELEVANCE OF INFORMATION TECHNOLOGY ON ORGANIZATIONAL PRODUCTIVITY OF SMALL AND MEDIUM SCALE ENTERPRISES IN PORT HARCOURT, NIGERIA
Purpose: This study was carried out to investigate the relevance of information technology on organizational productivity of small and medium scale enterprises in Port Harcourt, Nigeria.
Design/Methodology/Approach: The study adopted a survey design. Four objectives, three research questions and one hypothesis were formulated to guide the study. Population of the study consisted of registered SMEs in Port Harcourt where 13 were purposively selected. Total enumeration sampling technique was used to select all the 300 employees within the 13 SMEs. Instrument for data collection included a well-structured questionnaire. The instrument was validated using Cronbach’s alpha with an overall reliability of 0.74. Of the 300 distributed, 271 (90.3%) constituted the response rate. Data were analyzed using descriptive statistics and regression analysis.
Findings: Findings from the study revealed that IT significantly contributes to organizational productivity (r=0.003, P<0.05) which implies that information technology has a significant effect on the organizational productivity of SMEs.
Implication: The study established that effective utilization of IT in business performance would account for improved productivity of SMEs as it has become a growth platform for many larger companies.
Originality/Value: This study is the first of its kind investigating effect of IT in organizational productivity in Port Harcourt with evidence. Therefore, to harness full benefit of SMEs, the researchers recommended that trained IT staff be employed by SMEs; and a high level of IT infrastructure be introduced to enhance full participation of SMEs and productivity.
Keywords: Information Technology, Organizational productivity, Medium Scale Enterprises, Port Harcourt.