Digital Transformation and Performance of E-Service Businesses in West Africa

Abstract

In an era where digital innovation is essential for enhancing service delivery and competitiveness, understanding how these technologies influence firm performance is both timely and critical. Thus, this study examined the effect of digital transformation on the performance of e-service businesses in West Africa. Digital transformation was viewed using two dimensions: Artificial Intelligence (AI) adoption and cloud computing adoption. A cross-sectional survey research design was adopted to collect quantitative data from 348 owners and managers of e-service businesses across Nigeria, Ghana, Senegal, Côte d'Ivoire, and Sierra Leone using purposive sampling. Data were gathered through digitally administered structured questionnaires and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS. The findings revealed that AI adoption had a positive and significant effect on the performance of e-service businesses, particularly in terms of service efficiency, customer experience, and decision-making processes. Similarly, cloud computing adoption demonstrated a positive and significant effect on organisational performance. These findings indicate that digital technologies are not merely supportive tools but strategic resources that enable firms to achieve sustainable competitive advantage in the rapidly evolving West African digital economy. The study contributes to the growing literature on digital transformation by providing empirical evidence from e-service businesses across five West African countries, thereby extending existing studies that have largely focused on broader SME contexts.