Impact of Digital Transformation on the Sustainability of Small and Medium Enterprises in Lagos State, Nigeria
DOI:
https://doi.org/10.56919/jbam.2621.014Keywords:
Digital Infrastructure, Digital Skills, Innovation Adoption, Organisational Readiness, SMEs SustainabilityAbstract
SMEs face numerous challenges in adapting to rapid technological advancements, particularly in the realm of digital transformation meanwhile; sustainability has highlighted the urgent need to reduce the negative environmental impact on human activity. This study investigates the extent at which digital transformation impacts the sustainability of SMEs in Lagos State, Nigeria. The study adopted quantitative approach utilizing e-survey (online) to collect relevant data for the research with focus on SMEs in Lagos (the commercial capital of Nigeria). The target population comprises of 11,663 registered SMEs in Lagos State. This number forms the total population of study. The sample size was determined at 95% confidence level given the sample size of 372. SPSS version 27.0 was used to analyse the data such as correlation, multiple regression analysis and ANOVA were used, and hypotheses were tested using multiple regression approaches to ascertain the impact of digital transformation on SMEs sustainability. The study found that, digital infrastructure and organisational readiness are key enablers, whereas digital skills, adoption of innovations, and external support have weak or unstable effects as indicated from the outcome of the findings. Conclusively, the results provide strong evidence that digital transformation is a crucial factor in the sustainability of SMEs in Nigeria. The study recommended for policymakers that there is need to combine infrastructural investment, capacity-building, and supportive institutional frameworks. While for Lagos SME leaders, the results affirm the necessity of aligning internal processes and readiness with external digital opportunities to secure long-term sustainability.
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