Title: The Effect Of Ict Integration On Growth Of Small And Medium Enterprises Hargeisa, Somaliland
Authors: Mohamed Aden Hassan, Dahir Barre Mohamed Mustafe Mohamoud Abdillahii PhD
Volume: 9
Issue: 12
Pages: 91-101
Publication Date: 2025/12/28
Abstract:
The rapid evolution of Information and Communication Technology (ICT) presents a transformative opportunity for Small and Medium Enterprises (SMEs), especially in developing economies. This study critically analyzed the effect of ICT integration on the growth of SMEs in Hargeisa, Somaliland. Employing a mixed-methods approach, the research combined quantitative survey data from 291 SME operators with qualitative insights from key institutional stakeholders. Grounded in the Technology-Organization-Environment (TOE) framework and Dynamic Capabilities Theory, the study measured the relationship between ICT adoption and key growth indicators. The results revealed a statistically significant, positive, and moderate correlation (r = .550, p < .001) between ICT integration and SME growth. A simple linear regression model (Adjusted Rē = .300, ? = .550, p < .001) further confirmed that ICT integration is a significant predictor of growth, thereby leading to the rejection of the null hypothesis. This validated the core premise of Dynamic Capabilities Theory, demonstrating that ICT functions as a strategic capability enabling SMEs to sense market opportunities, seize them, and reconfigure operations. The findings indicate that while ICT is a powerful enabler, its impact is moderated by other factors. The study concludes that strategic ICT integration is essential for SME competitiveness in Somaliland and offers actionable recommendations for entrepreneurs, policymakers, and educators to foster a conducive digital ecosystem.