Technology Adoption and Distribution Channel Efficiency of SMEs in Taraba State, Nigeria

Abstract

This study investigates the influence of technology adoption on the distribution channel efficiency of Small and Medium Enterprises (SMEs) in Taraba State, Nigeria. Anchored in Dynamic Capabilities Theory, the study examines four technology dimensions—mobile applications, e-commerce platforms, inventory management systems (IMS), and electronic payment systems (EPS)—as predictors of distribution channel efficiency, operationalized through time, cost, service, and resource utilization efficiency. A descriptive and correlational research design was employed, with data collected from 386 SMEs across five Local Government Areas using a structured Likert-scale questionnaire. Multiple regression analysis was conducted using SPSS v26. The overall model was statistically significant [F(4, 381) = 28.731, p < .001], explaining 23.2% of the variance in distribution channel efficiency (R² = .232). E-commerce platforms emerged as the dominant predictor (β = 0.473, p < .001), followed by mobile applications (β = 0.114, p = .017). IMS recorded no significant independent effect (β = −0.018, p = .768), while EPS produced a statistically significant negative coefficient (β = −0.165, p = .006), interpreted as a suppression artifact rather than a genuine adverse effect. Findings confirm that e-commerce adoption is the most impactful lever for distribution efficiency among Taraba State SMEs. Integrated technology adoption strategies and targeted policy support are recommended to deepen digital utilization and strengthen SMEs logistics performance.