Evaluating Automation and Information Management in Sme Operations: Effects on Operational Efficiency and Decision-Making
- Okonkwo Henry Onyeka
- DOI: 10.5281/zenodo.23501713
- ISA Journal of Business, Economics and Management (ISAJBEM)
Small
and Medium-sized Enterprises (SMEs) increasingly depend on computerized
information systems to manage inventory, sales, product information, and other
operational activities. Automation can reduce repetitive manual work, while
accurate and accessible information can support timely business decision-making.
However, the extent to which these capabilities contribute to operational
efficiency and decision-making in SME environments requires empirical
evaluation. This study evaluated the relationship between automation and
operational efficiency and examined the relationship between information
quality and accessibility and business decision-making within SME operations,
using a computerized inventory/business management system as the practical
context. A quantitative survey research design was adopted, and data were
collected using a structured questionnaire administered to individuals with
experience using or evaluating computerized inventory/business management
systems. A total of 106 responses were obtained, of which 103 eligible
responses were included in the principal statistical analysis. Data were
analyzed using descriptive statistics, Cronbach’s alpha, Pearson product-moment
correlation, and simple linear regression. The reliability analysis
demonstrated acceptable to excellent internal consistency across the principal
constructs, with Cronbach’s alpha values ranging from 0.741 to 0.915.
Automation showed a significant positive relationship with operational
efficiency (r = 0.644, p < 0.001) and explained approximately 41.5% of the
variance in operational-efficiency scores (R² = 0.415, p < 0.001).
Information quality and accessibility demonstrated a stronger positive
relationship with decision-making (r = 0.702, p < 0.001) and explained
approximately 49.2% of the variance in decision-making (R² = 0.492, p <
0.001). The decision-making construct recorded a mean score of 4.14, indicating
a generally positive perception among respondents. However, the image-based
product-import feature recorded a comparatively low mean score of 2.46,
indicating an area requiring further improvement. The findings indicate that
automation is significantly associated with operational efficiency, while
information quality and accessibility are significantly associated with
business decision-making. The study therefore demonstrates the potential value
of computerized information systems in improving SME operations and supporting
business decisions, while highlighting the need for continuous improvement of
individual automated features, particularly image-based data import. Future
research should complement user-perception measures with objective indicators
such as task-completion time, data-entry accuracy, and long-term operational
performance.
Keywords: automation, information
management, small and medium-sized enterprises, operational efficiency,
decision-making, inventory management, information systems, digital
transformation, optical character recognition.
