The impact of SMEs on technological development

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Entrepreneurs often lack human and material resources needed for multidisciplinary activities in accounting, HR, marketing and sales. Innovative leaders thus need to strategize on optimizing use of people, process and technology (Schaupp & Bélanger., 2014).

According to Asomaning and Abdulai (2015), businesses in the SME sector appear similar but have different challenges which may occur at the same growth level. However, by conducting research on the organizational weaknesses, threats, strengths and opportunities, leaders find solutions that guarantee competitive advantage. Again, Schaupp & Bélanger (2016) added that a good knowledge of social commerce, together with the availability of modern Internet Communications Technology (ICT), can provide SMEs with competitiveness and sustainability since strategic social media exposure enhances market visibility, increases sales, expands market share, and improves a company’s public image.

Lee, Kim, Chung, Ahn and Lee (2016) collaborated claims on the aforementioned benefits, adding that social commerce, which encourages e-commerce transactions among different companies and between individual customers, highlights the need for technological advancement in the SME sector. Therefore, Christensen’s (2013) disruptive technology theory argues that SMEs can only compete favorably against large-scale industries through maximization of the technology platform, specifically by adapting to advancements in ICT and utilizing business growth strategies for product differentiation, value creation and customer satisfaction.

In Nigeria, most SMEs with visionary leaders fail due to governments’ insensitivity towards the need for technological advancement. Moreover, the impact of corruption, political instability and lack of effective mechanisms to monitor implementation of government policies cannot be underestimated. Responsible leadership is therefore necessary to vitalize the SME sector.

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