IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF INNOVATION AND MODERN TECHNOLOGY (WJIMT )

E-ISSN 2504-4766
P-ISSN 2682-5910
VOL. 8 NO. 6 2024
DOI: 10.56201/wjimt.v8.no6.2024.pg76.92

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Innovation and Technology Adoption Among SMES in Rivers State, Nigeria: (Challenges and Opportunities)

Nwabuatu, Emmanuel Nnajiubah. Ph.D :

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Abstract

This study investigates the challenges and opportunities of technology adoption among small and medium enterprises (SMEs) in Rivers State, Nigeria. Given the crucial role SMEs play in economic development and job creation, understanding their capacity to integrate innovative technologies is essential for enhancing competitiveness and fostering growth. Through a qualitative methodology, including a conceptual review and analysis of relevant case studies, this research explores the current state of technology adoption, identifying key barriers such as financial constraints, inadequate infrastructure, and limited digital skills. The findings reveal that while some SMEs have begun to embrace basic digital tools, the overall integration of advanced technologies remains limited. Additionally, the study highlights the role of supportive government policies and the need for targeted interventions to facilitate technology adoption. Key recommendations include promoting low-cost technology solutions, investing in employee training, and fostering partnerships with technology providers to enhance accessibility and support. Furthermore, the research emphasizes the importance of government incentives, such as tax relief and infrastructure improvements, to create a conducive environment for SMEs. This study contributes to the existing body of knowledge by providing insights into the specific challenges faced by SMEs in Rivers State, along with actionable recommendations for overcoming these barriers. By leveraging technology, SMEs can improve operational efficiency, expand market access, and ultimately drive economic growth in the region. The findings underscore the need for a collaborative approach involving SMEs, government, and technology firms to effectively harness the potential of technological innovation in enhancing the entrepreneurial landscape of Rivers State.

keywords:

Innovation, Technology Adoption, SMEs (Small and Medium Enterprises), Rivers State,

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. SMEs can improve
their competitiveness and profitability by using analytics technologies to tailor consumer
experiences, make well-informed decisions, and create focused marketing campaigns (Adwan et
al., 2023). Lastly, automation offers the chance to automate repetitive processes like order
processing, customer support, and inventory management, freeing up time and resources for
higher-value work. SMEs may greatly increase their operational efficiency, lower errors, and more
successfully scale their operations by embracing automation.
Rivers State's SMEs have a difficult time implementing new technologies because of
infrastructure, cost, and technical know-how issues. Despite this, there are great development
prospects in fields like automation, data analytics, and e-commerce. SMEs may fully reap the
rewards of technology adoption to boost their competitiveness and spur long-term growth by
addressing these issues with focused interventions including better infrastructure, funding, and
training in digital skills.
Conclusion
This study investigated the potential and difficulties associated with SMEs in Rivers State, Nigeria,
adopting new technologies. Important discoveries indicate that although a small number of SMEs


World Journal of Innovation and Modern Technology E-ISSN 2756-5491 P-ISSN 2682-5910
Vol 8. No. 6 2024 www.iiardjournals.org Online Version





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are embracing digital tools such as social media and mobile payments, the use of more
sophisticated technologies is still restricted. Poor infrastructure, especially in terms of erratic
power and restricted internet access, and the high expense of purchasing and maintaining digital
instruments are major obstacles. The full potential of technology utilization is also hampered by
the resistance to change and lack of digital literacy that many SMEs face.
Despite these obstacles, technology offers a lot of potential for advancement. SMEs may access a
wider audience and cut expenses through e-commerce, while automation and data analytics can
improve decision-making and operational effectiveness. Government assistance in enhancing
infrastructure, financial support in the form of loans and subsidies, and capacity-building
initiatives centered on digital skills are crucial for removing the obstacles.
In addition, public-private partnerships can be very helpful in giving SMEs access to technical
assistance and reasonably priced technology solutions. SMEs in Rivers State can use technology
to enhance operations, spur growth, and support the region's overall economic development with
the correct mix of policies, funding, and training.
Recommendations
To promote effective technology adoption among SMEs in Rivers State, a comprehensive
approach is needed, involving both the SMEs themselves and supportive government policies.
SMEs should focus on adopting affordable and user-friendly digital tools such as mobile
payment systems, cloud-based solutions, and social media platforms. These tools can enhance
operational efficiency, expand market reach, and streamline processes without requiring
significant upfront investment.
Developing the digital skills of employees is essential for successful technology integration.
SMEs should regularly train their staff to improve digital literacy and ensure employees are
proficient in using new technologies. This can be done through internal workshops or
collaborations with local training providers and technology firms.
Strategic alliances with tech companies can help SMEs access cost-effective and tailored
solutions. Such partnerships may also provide ongoing technical support and reduce the
operational burden on SMEs. Collaborating with tech providers ensures that SMEs stay
updated with technological advancements while minimizing costs.
Rather than a full-scale overhaul, SMEs should adopt incremental technology upgrades,
implementing small-scale solutions to automate specific processes and improve efficiency.
This step-by-step approach makes the transition smoother and more manageable.


World Journal of Innovation and Modern Technology E-ISSN 2756-5491 P-ISSN 2682-5910
Vol 8. No. 6 2024 www.iiardjournals.org Online Version





IIARD – International Institute of Academic Research and Development

Page 89
The government can provide tax relief on technology-related expenses, encouraging SMEs to
invest in digital tools. Additionally, reducing import duties on technology products can make
these solutions more affordable for SMEs, thereby facilitating wider adoption.
A reliable power supply and access to high-speed internet are critical for digital transformation.
The government should invest in improving these infrastructures, particularly in underserved
areas, to create a conducive environment for businesses to adopt and use digital technologies.
Government-led initiatives, in collaboration with the private sector, should fund and promote
digital literacy programs for SMEs. These programs should aim to equip business owners and
employees with the skills necessary to leverage technology for growth, productivity, and
innovation.
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World Journal of Innovation and Modern Technology E-ISSN 2756-5491 P-ISSN 2682-5910
Vol 8. No. 6 2024 www.iiardjournals.org Online Version





IIARD – International Institute of Academic Research and Development

Page 90
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