Impact of Digital Tool Adoption on Operational Efficiency of Small and Medium-Scale Enterprises (SMEs) in Abuja

The adoption of digital tools by SMEs has become essential to drive operational efficiency. Especially within the Abuja Metropolis. This study examined the impact of digital tool adoption on the operational efficiency of SMEs in Abuja, focusing specifically on cloud-based applications, data analytics tools, and automated inventory systems, and their influence on turnaround time. Employing a quantitative cross-sectional research design, the sample size was calculated using Taro Yamane’s formula due to the large nature of the population at a 95% confidence level and a 5% margin of error. The theoretical framework was anchored on the Unified Theory of Acceptance and Use of Technology (UTAUT), developed by Venkatesh et al. (2003), which provides the most suitable framework for examining how digital tool adoption influences operational efficiency of SMEs in Abuja.. Data analysis was conducted using multiple regression analysis. Results indicated a significant positive relationship between digital tool adoption and operational efficiency. The study recommends that SMEs should adopt digital tools to enhance turnaround time and ultimately operational efficiency.