Economic Factors and SMEs Performance in Katsina State: Mediating Role of Access to Information and Communication Technology (ICT)

¹Mustapha Badamasi    &   ²Muhammad Nasir Saba

¹Azman University, Kano

²Federal University Dutsin-Ma

Correspondence email address: [email protected]

Abstract

The study examined the effect of environmental factors on SMEs performance, with a mediating role for access to ICT. Based on the Technology Acceptance Model (TAM) and Dynamic Capabilities View theories; a cross-sectional research design was employed to collect data from the target respondents. The study population consisted of SME owners/managers from the manufacturing, educational, and service sectors operating in Katsina State, from which a sample of 300 was drawn. A PLS-SEM approach was used to analyze the data with the aid of Smart PLS 3.2.8. The results showed that economic environmental factors (tax policy, interest rate, inflation rate, and market uncertainty) were significantly and positively related to the performance of SMEs in Katsina State. The result also indicated that Access to ICT mediates the effect of the economic environment on SMEs performance.

Keywords: Access to ICT, Economic factors, Katsina State, SME performance, Technology Acceptance Model.