The role of SME dynamic capabilities on the evaluation of existing ICT

Abstract

Small and medium enterprises (SMEs) are exposed to agile and dynamic environments where information and communication technologies (ICTs) change frequently. As such, SMEs need to be counter-agile in response to these changes. The ability of an SME to respond dynamically to agile business environments is called dynamic capabilities. This paper investigated the role that SME dynamic capabilities play in the evaluation of existing ICTs before making adoption decisions to switching to emerging ICTs. The study collected data from 222 SME owners across South Africa. The data collected were analysed quantitatively, using correlation and regression analysis. The results obtained suggest that SMEs in this study perceive that they have absorptive and innovative capabilities, but they do not possess innovative capabilities. While SMEs perceive themselves to demonstrate absorptive and adaptive capabilities, these capabilities do not influence their decision to switch to new emerging and enticing ICTs despite knowing of its existence. The findings suggests that South African SMEs do not consider new and emerging ICT as offering advantages. The findings also suggest that, instead of SME dynamic capabilities there might be other factors such as social, technical and economic or financial factors that might assist in the evaluation of existing ICTs. Future research should consider investigating these inferences.