Title: The Effect Of Access To And Use Of Information Communication Technology On Growth Of Small And Medium Enterprises In Hargeisa, Somaliland.
Authors: Mohamed Aden Hassan, Dahir Barre Mohamed, Suleiman Abdifatah Abdinor Mustafe Mohamoud Abdillahii PhD (c)
Volume: 9
Issue: 11
Pages: 220-233
Publication Date: 2025/11/28
Abstract:
This study empirically investigated the effect of access to and use of Information and Communication Technology (ICT) on the growth of Small and Medium Enterprises (SMEs) in Hargeisa, Somaliland. The research was grounded in the Technology-Organization-Environment (TOE) framework, which posits that technological adoption is influenced by the interplay of technological, organizational, and environmental contexts. A mixed-methods approach was adopted, combining a cross-sectional survey of 291 SME owners and managers, selected through stratified and simple random sampling from a population of 2,183, with semi-structured interviews with seven key institutional stakeholders. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and linear regression. The findings revealed a very strong, positive, and statistically significant relationship between ICT access and use and SME growth (r = 0.973, p < 0.001). The regression analysis confirmed that ICT was a paramount predictor, explaining 94.7% of the variance in SME growth. Consequently, the null hypothesis (H?) stating no significant effect was rejected. The study concluded that access to and use of ICT has a profound positive effect on SME growth in Hargeisa. Key drivers included strong internal peer support and a supportive external community, highlighting the significant roles of the organizational and environmental contexts within the TOE framework. The study recommends that SME owners strategically invest in ICT and foster a supportive digital culture, while policymakers should prioritize enhancing digital infrastructure, affordability, and literacy to harness the full potential of the digital economy for sustainable local development.