Technological Innovation and the Competitiveness of Small and Medium Enterprises in Enugu State, Nigeria

This study examined the effect of technological innovation on the competitiveness of Small and Medium Enterprises (SMEs) in Enugu State, Nigeria, focusing specifically on mobile banking applications, Point of Sale (POS) machines, social media handling, and functional websites. Four specific objectives guided the study, each investigating the effect of one technological innovation on a corresponding dimension of competitiveness: customer patronage, customer satisfaction, customer loyalty, and market share. A descriptive survey research design was adopted, and primary data were collected from SME owners and managers using a structured questionnaire, the Technological Innovation and SME Competitiveness Questionnaire (TISCOQ). Out of 303 questionnaires administered using a Taro Yamane-derived sample from a population of 1,245 registered SMEs, 287 were properly completed and returned, representing a response rate of 94.7%. Data were analysed using descriptive statistics (mean and standard deviation) and multiple linear regression at the 5% level of significance. The results showed that mobile banking applications had a significant positive effect on customer patronage (β = 0.241, t = 4.12, p = 0.000); POS machines had a significant positive effect on customer satisfaction (β = 0.198, t = 3.56, p = 0.001); social media handling had the strongest positive effect on customer loyalty (β = 0.276, t = 4.85, p = 0.000); and functional websites significantly influenced market share (β = 0.163, t = 2.98, p = 0.003). The overall model explained 65.9% of the variance in SME competitiveness (R² = 0.659; Adjusted R² = 0.648) and was statistically significant (F = 54.32, p = 0.000). The study concludes that technological innovation is a critical determinant of SME competitiveness in Enugu State and recommends increased adoption of digital financial tools, improved POS infrastructure, more deliberate social media engagement strategies, and wider establishment of functional websites among SMEs.