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Digital Platforms and Financial Performance of Small and Medium Enterprises (SMEs) in Nigeria
The study investigated the effect of digital platforms on SMEs’ performance. Specifically, the study (i) assessed the effect of social networking platforms on SMEs' sales growth and (ii) investigated the effect of digital payment platforms on SMEs' revenue growth in Enugu State, Nigeria. A descriptive survey research design and questionnaire survey of 396 SMEs were adopted for the study. Linear regression was used to test the study’s hypotheses. The result of the study showed that social networking platforms had a significant positive effect on SMEs' sales in Enugu State, Nigeria (β = .863; p-value < 0.05), and digital payment platforms had a significant positive effect on SMEs' revenue growth in Enugu State, Nigeria (β = .907; p-value <0.05). The study concludes that adopting digital platforms is a crucial sustainability strategy for SME owners/managers to ensure business growth and competitive advantage. Therefore, SME owners should adopt digital technologies to connect with customers and use various digital payment platforms in their operations to enhance operational efficiency and maximise financial performance.
Keyword: digital-platforms; social-networking; digital-payment; performance; sales, revenue, technology
