Effect of Digital Transformation on Performance of Small-Businesses in Abuja Municipal Area Council (AMAC), Nigeria

Omagbedhe Goddy Aworawo; Johnson Okoh; Jelili Babatunde Sufian; Kayode Ibrahim Kadiri

doi:10.58709/niujms.v12i3.2628

Omagbedhe Goddy Aworawo National Open University of Nigeria
Johnson Okoh National Open University of Nigeria
Jelili Babatunde Sufian National Open University of Nigeria
Kayode Ibrahim Kadiri National Open University of Nigeria

DOI: https://doi.org/10.58709/niujms.v12i3.2628

Abstract

This study examined the effect of digital transformation on performance of small businesses in Abuja Municipal Area Council (AMAC), Nigeria. Based on constructs digital marketing tools, electronic payment systems, and cloud-based record-keeping. Business performance was measured using financial performance (sales turnover), operational efficiency, and customer-related outcomes (profit margins). A cross-sectional survey research design was employed, with data collected from 297 owners and managers of registered small-scale enterprises within the Garki Modern Market Small-Scale Business Cooperative Society. A structured questionnaire Instrument was used to measure respondents' response using a five-point Likert scale. Simple linear regression analysis was conducted to test three null hypotheses at a 0.05 significance level. The findings revealed that digital marketing adoption had the strongest positive effect on business performance (β = 0.542, R² = 0.294, p < 0.05), followed by electronic payment system β = 0.508, R² = 0.258, p < 0.05). Cloud-based record-keeping also showed a significant but weaker positive effect (β = 0.321, R² = 0.103, p < 0.05). All three null hypotheses were rejected, confirming that each digital transformation dimension significantly enhances small-scale business performance in AMAC. The study concludes that digital transformation improves business performance, with digital marketing tools and electronic payment systems providing the most immediate benefits. However, cloud-based record-keeping adoption remains low due to infrastructure deficits and data security concerns. Recommendations include; prioritizing digital marketing and electronic payment adoption; improving electricity reliability and subsidizing data costs; and promoting hybrid cash-digital payment models alongside digital literacy training for small-scale business owners by SMEDAN.

Keywords: Digital transformation; digital marketing tools; electronic payment systems; cloud-based record-keeping; small business performance.