Effect of Digital Skills Integration on the Performance of Selected Cottage Industries in Osun State, Nigeria

Abstract

The rapid advancement of digital technology presents both opportunities and challenges for cottage industries in Osun State, Nigeria, where limited digital skills hinder optimal business performance and growth. This study investigated the effect of digital skills integration on the performance of selected cottage industries in Osun State, addressing the critical need to enhance competitiveness through technology adoption. The main objective is to examine the overall effect of digital skills integration on industry performance, with specific objectives to assess the effect of ICT literacy, social marketing skills, and e-payment skills on sales growth. Conducted in Osun State, the study employed a descriptive research design. The population comprised 12,653 cottage industry operators drawn from textile and weaving, food processing, leather and footwear, and soap and cosmetic production sectors, as sourced from the Osun State Ministry of Cooperatives and Empowerment (2024). Using Taro Yamane’s formula, a sample size of 388 was determined. Data collected via structured questionnaires were analysed with SPSS version 25, using both descriptive statistics, including frequencies and percentages, in addition to multiple regression analyses. Results revealed that ICT literacy (β = 0.792), social marketing skills (β = 0.760), and e-payment skills (β = 0.728) significantly affected sales growth, jointly explaining 68.3% of the variance in performance. The study concluded that strengthening digital skills is crucial for boosting sales growth in cottage industries. It recommended targeted digital literacy training programmes, capacity-building in social media marketing, and facilitation of accessible e-payment platforms to enhance business operations and foster economic growth within the cottage industry sector of Osun State, Nigeria.