The Digital Transformation Imperative: How Service Automation, Internet of Things, and Digital Marketing Adoption Drive Performance in Small and Medium Enterprises

Abstract: Small and Medium Enterprises are not merely components of the business world, but rather the fundamental engines of economic development, growth, job creation, and innovation. Consequently, their performance has become increasingly critical and timely, particularly in the context of developing nations. This study examines how contemporary service automation, Internet of Things technology, and digital marketing influence the performance of small and medium-sized enterprises (SMEs) in Ogun State, Nigeria. It emphasises the vital role SMEs play in economic development. We employed a quantitative research design and collected data from 107 supermarket firms. The study identified associations between four types of technology and SME performance. Positive associations were found for service automation (β = 0.966, p < 0.001) and digital marketing (β = 0.440, p < 0.001), whilst one negative and significant association concerning IoT was discovered (β = -0.577, p < 0.001). The combined model explains 71.1% of the variation in SME performance. The study serves the dual purpose of enriching existing insights within the framework of the current body of knowledge and helping inform SME sector industries on how they should consider the use of available technology for performance improvement.

SME performance, emerging technology adoption, service automation, Internet of Things, digital marketing, Nigeria

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