The use of Software as a Service to improve the Dynamic Capabilities of South African Small and Medium Enterprises

Abstract

Business aspects such as sales, human resources management (HRM), marketing, accounting, and customer relationship management (CRM) are important for Small and Medium Enterprises (SMEs). Therefore, it is anticipated that SMEs will get to benefit from using innovative technologies (IT) such as Software as a Service (SaaS). SaaS is a Cloud Computing model where applications, resources, and services are provided by the service provider (SP) to SMEs and accessed via the internet. SaaS may transform SMEs. One of the major benefits of SaaS is its dynamic capabilities. Despite the benefits of SaaS, the utilization of this technology in SMEs, particularly in developing countries is still limited. This research study aims to develop a conceptual model for the use of SaaS to improve the dynamic capabilities of South African SMEs. In this study, the theory of Technology-Task-Fit (TTF) will be adopted and used to underpin the study. A positivist research paradigm will be adopted. The study will use a quantitative research approach and data will be collected from 344 SME managers in South Africa using a questionnaire. Structural equation modeling (SEM) will be applied in this study to analyze the data.