Assessing the Interaction of Technology, Innovation and Sociocultural Variables on the Performance of Small and Medium Enterprises

Abstract

Research in this study explored the effect of innovation in the link between small and medium-sized businesses' external business environment and their overall success (SMEs). Oyo-based small and medium-sized enterprises are the focus of the study. Technology and the sociocultural milieu were used to gauge the external business environment. Owners and managers of small businesses in Oyo state, Nigeria, were surveyed. According to the study, 457 copies of questionnaire were collected from the respondent using the stratified sampling method. Only 409 copies of the completed questionnaires made it through the screening process and were used in the analysis. Smartpls2 data was analysed using structural equation modelling. The results show that the performance of SMEs is positively influenced by technological and sociocultural factors. The study concludes that managers and owners of small and medium-sized enterprises (SMEs) should ensure that they have a thorough understanding of the business environment in order to be able to perform effectively and to welcome new innovations. According to this study, customers are more likely to patronise a SME if its managers/owners focus on technology and the sociocultural environment.