Citation:

Ayodeji, O.T., Akinlabi, H. B., Makinde, G. O. "Disruptive Technology Components and the Return on Investment of Selected Manufacturing SMEs in Lagos and Ogun States, South-West, Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 387-396, 2023.

Abstract:

Manufacturing small and medium enterprises (SMEs) play significant roles in a global economy and provided several dynamic benefits that are critical for economic transformation. Despite these contributions, the gaps observed from the various studies are the lack of investigations on performance of manufacturing SMEs in developing nations and particularly in Nigeria, on the adoption of disruptive technologies and its effect on performance of manufacturing SMEs. Studies have shown that the performance of manufacturing SMEs have been meagre and, in some cases, very low due to poor capacity and technical know-how resulting in declining return on investment. The study investigated effect of disruptive technology (DT) on return on investment of selected manufacturing SMEs in Lagos and Ogun States, South-West, Nigeria. This study adopted a survey research design. The total population was 2603 owners-managers of manufacturing SMEs in Lagos and Ogun States, Nigeria. The study used Cochran (1977) formula to determine the sample size of 436. A simple random sampling technique with proportionate allocation was used to select the respondents. A structured and validated questionnaire was used for data collection. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.726 to 0.900. The response rate was 88.30%. Findings revealed that disruptive technology components had significant effect on return on investment (Adj.R2 = 0.842, F(6, 378) = 343.200, p < 0.05). The study concluded that disruptive technology improved return on investment of selected manufacturing SMEs in Lagos and Ogun States, South – West, Nigeria. It was recommended that the adoption of disruptive technology components such as technology investment, technology awareness, technology response, technology adaptation, technology transfer, and technology accessibility should be encouraged in order to improve the return on investment of SMEs.

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Keywords:

Disruptive Technology, Return on Investment, Technology Accessibility, Technology Adaptation, Technology Awareness, Technology Investment, Technology Response, Technology Transfer.