DIGITAL TECHNOLOGY ADOPTION AND ENTERPRISE PERFORMANCE: EMPIRICAL EVIDENCE FROM SMALL AND MEDIUM-SCALE ENTERPRISES IN NASARAWA STATE, NORTH CENTRAL NIGERIA

Abstract

The performance of small and medium-scale enterprises (SMEs) in Nasarawa State, North Central Nigeria, has remained persistently below potential despite the rapid proliferation of digital technologies across the Nigerian business landscape. While digital payment and digital marketing technologies have been widely promoted as drivers of enterprise growth, empirical evidence on their specific effects on SME performance within Nasarawa State context remains limited. This study examines the effect of digital technology adoption, through digital payment technology adoption and digital marketing technology adoption, on the performance of SMEs in Nasarawa State, North Central Nigeria. A cross-sectional survey research design was adopted, with a sample of 386 SME owners/managers selected from a population of 10,728 registered SMEs using a multi-stage sampling technique. Data were collected through a structured questionnaire adapted from previously validated instruments, and analysis was conducted using Partial Least Square Structural Equation Modelling (PLS-SEM) with SmartPLS 3.0. The study concludes that SMEs operating within a digitally enabled business environment are measurably more productive, profitable and competitive, and that strengthening digital payment infrastructure and digital marketing capabilities in Nasarawa State is a development priority with direct implications for job creation, rural enterprise growth and economic diversification. Recommendations include expanding digital payment infrastructure to rural areas, introducing digital literacy and marketing training programmes for SME owners, and creating incentives for the adoption of integrated digital business solutions.