ASSESSMENT OF THE USE OF INFORMATION COMMUNICATION TECHNOLOGIES (ICT) ON THE ECONOMIC PERFORMANCE OF AGRO-BASED FOOD INDUSTRIES IN SOUTH-WEST NIGERIA

The use of Information Communication technologies (ICTs) as a management tool has gained widespread significance in recent years and the stock of management advantages provided by ICT cuts across disciplines and sectors. Management experts see this globalization of management options as the “super production and marketing input” needed by firms to boost their competitive edge. This paper assesses the adoption and use of ICTs on the economic performance of Agro-industries (ABFIs) in South-West, Nigeria. Primary data were collected from a total of 80 respondents from the study area. Budgetary analysis, t-test of mean differences and multiple regressions were used in the data analysis to actualise the study objectives. In assessing the effect of ICTs on the economic performance of the companies, the “before and after” scenarios were analysed. The results revealed an increase of about 14 percent increase in total profit after adoption of ICTs. The reduction in marketing cost brought about by adopting ICT s were found to be largely responsible for the increase in profit of the ICT adopting firms. The results also revealed that irrespective of the scale of operation, there was a general reduction in total marketing cost due to ICT adoption. The Cobb Douglas function fitted to explain the cost effect relationship between yearly firms’ expenditure on ICTs and firm’s characteristics revealed that the proportion of ICT literate staff to the total staff strength and age of firm were found to be significant positive determinants of ICTs expenditure. The study recommends the adoption and use of ICTs by agro-based firms as a cutting edge input that is not only cost effective but more efficient in the long run.