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In spite of the roles played by ICT and the various efforts made by government at all levels to encourage SMEs to adopt ICT for effective performance, SMEs in Nigeria have failed to take the advantage of reaping the benefits of ICT application in order to perform optimally. The study therefore investigated the extent of ICT application by Small and Medium Enterprises, and evaluates the effect of ICT application on the performance of SMEs in Ondo State, using a well-structured questionnaire as method of data collection. Both descriptive and inferential methods of analysis were also used by the study. The descriptive analysis revealed that SMEs applied ICT devices to a large extent in their operations in the study area; leaving only the satellite system (2.03), cash counting machine (2.02), fax/telex (1.90) and Cash tiling machine (1.58) devices that were ‘not often’ or ‘never’ used, with their corresponding mean values within 1.81 – 2.6 and 1.0 – 1.8 respectively. The Hierarchical Multiple Regression and Analysis of Variance (ANOVA) results also indicated positive and significant effect of ICT application on performance of SMEs in the study area, with all the predictor models significant at 5% level. The study concluded that ICT application did not just make a difference but a significant difference in the performance of small and medium enterprises (SMEs) in Ondo State, Nigeria; while also recommended the need to put into constant use some of the ICT devices that were not often or ‘never’ used by SMEs, so as to continually serve the customers better, gaining competitive advantage and maintaining significant performance of SMEs in Ondo State, Nigeria.

Performance of Small and Medium Enterprises in Ondo State, Nigeria: Does Application of Information and Communication Technology Make a Difference?