Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs

The study delves into the challenges and opportunities SMEs face in South-West Nigeria, focusing on the transformative impacts of digitalization, big data analytics, customer experience enhancement, and stringent budgeting controls on their financial performance. The research analyzes data from 825...

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Main Authors: Oziegbe Simeon Ebhota, Yao Hongxing, Agyemang Kwasi Sampene
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Scientific African
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2468227624003715
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author Oziegbe Simeon Ebhota
Yao Hongxing
Agyemang Kwasi Sampene
author_facet Oziegbe Simeon Ebhota
Yao Hongxing
Agyemang Kwasi Sampene
author_sort Oziegbe Simeon Ebhota
collection DOAJ
description The study delves into the challenges and opportunities SMEs face in South-West Nigeria, focusing on the transformative impacts of digitalization, big data analytics, customer experience enhancement, and stringent budgeting controls on their financial performance. The research analyzes data from 825 SMEs through Partial Least Squares Structural Equation Modelling (PLS-SEM) analyze the data. The findings indicate that digital transformation significantly boosts customer experience, big data analytics, and budgetary controls. Enhanced customer experience and effective big data utilization reciprocally improve budgetary control processes, which are crucial for financial performance. The study reveals the mediating roles of customer experience and big data analytics in the relationship between digital transformation and budgeting control, highlighting the interconnectedness of these factors. Financial efficiency also emerges as a significant moderator in the nexus between budgetary control and financial performance, underscoring its influence on economic outcomes. This research proposed initiatives such as investments in customer relationship management systems, personalized services, and streamlined communication channels to create positive customer experiences that, in turn, positively influence budgeting outcomes.
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series Scientific African
spelling doaj-art-e38dbd526fa54000b0501507591fa32a2025-08-20T02:40:11ZengElsevierScientific African2468-22762024-12-0126e0242910.1016/j.sciaf.2024.e02429Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEsOziegbe Simeon Ebhota0Yao Hongxing1Agyemang Kwasi Sampene2Corresponding author.; School of Management, Jiangsu University, Zhenjiang, Jiangsu, 212013, ChinaSchool of Management, Jiangsu University, Zhenjiang, Jiangsu, 212013, ChinaSchool of Management, Jiangsu University, Zhenjiang, Jiangsu, 212013, ChinaThe study delves into the challenges and opportunities SMEs face in South-West Nigeria, focusing on the transformative impacts of digitalization, big data analytics, customer experience enhancement, and stringent budgeting controls on their financial performance. The research analyzes data from 825 SMEs through Partial Least Squares Structural Equation Modelling (PLS-SEM) analyze the data. The findings indicate that digital transformation significantly boosts customer experience, big data analytics, and budgetary controls. Enhanced customer experience and effective big data utilization reciprocally improve budgetary control processes, which are crucial for financial performance. The study reveals the mediating roles of customer experience and big data analytics in the relationship between digital transformation and budgeting control, highlighting the interconnectedness of these factors. Financial efficiency also emerges as a significant moderator in the nexus between budgetary control and financial performance, underscoring its influence on economic outcomes. This research proposed initiatives such as investments in customer relationship management systems, personalized services, and streamlined communication channels to create positive customer experiences that, in turn, positively influence budgeting outcomes.http://www.sciencedirect.com/science/article/pii/S2468227624003715Digital transformationBig data analyticsCustomer experienceBudgeting controlFinancial efficiencyFinancial performance
spellingShingle Oziegbe Simeon Ebhota
Yao Hongxing
Agyemang Kwasi Sampene
Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
Scientific African
Digital transformation
Big data analytics
Customer experience
Budgeting control
Financial efficiency
Financial performance
title Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
title_full Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
title_fullStr Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
title_full_unstemmed Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
title_short Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs
title_sort investigating the influence of digital transformation budgeting and budgetary control on the financial performance of smes
topic Digital transformation
Big data analytics
Customer experience
Budgeting control
Financial efficiency
Financial performance
url http://www.sciencedirect.com/science/article/pii/S2468227624003715
work_keys_str_mv AT oziegbesimeonebhota investigatingtheinfluenceofdigitaltransformationbudgetingandbudgetarycontrolonthefinancialperformanceofsmes
AT yaohongxing investigatingtheinfluenceofdigitaltransformationbudgetingandbudgetarycontrolonthefinancialperformanceofsmes
AT agyemangkwasisampene investigatingtheinfluenceofdigitaltransformationbudgetingandbudgetarycontrolonthefinancialperformanceofsmes