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The impacts of ICT utilisation and dynamic capabilities on the competitive advantage of South African SMEs

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  • Tejumade V. Adeniran
  • Kevin A. Johnston

Abstract

This study investigated the impacts of information and communication technology (ICT) utilisation and dynamic capabilities (DCs) on the competitive advantage of South African small and medium enterprises (SMEs). The study explored the types of organisational capabilities or DCs that can impact on competitive advantage within the SMEs. Data was collected through an online based semi-structured questionnaire from individuals responsible for ICT of South African SMEs. The statistical evidence gathered showed that ICT utilisation had positive impacts on competitive advantage. The ability of ICT to provide SMEs with competitive advantage lies in its usage, and not just merely by possessing ICT tools, applications or functions. It was also found that sensing and integrative capabilities, as well as behavioural innovativeness were part of DC attributes. The findings showed that all the DC attributes (sensing, absorptive, adaptive, innovative, networking and integrative capabilities) and behavioural innovativeness had impacts on competitive advantage, and that DCs are capable of influencing SMEs' valuable, rare, inimitable and non-substitutable (VRIN) resources to achieve competitive advantage. It was also found that DCs had positive impacts on ICT utilisation. DCs can assist SMEs to generate long-time returns on ICT applications, functions and tools.

Suggested Citation

  • Tejumade V. Adeniran & Kevin A. Johnston, 2016. "The impacts of ICT utilisation and dynamic capabilities on the competitive advantage of South African SMEs," International Journal of Information Technology and Management, Inderscience Enterprises Ltd, vol. 15(1), pages 59-89.
    • Handle: RePEc:ids:ijitma:v:15:y:2016:i:1:p:59-89
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    Cited by:

    1. Sean Kruger & Adriana Aletta Steyn, 2020. "Enhancing technology transfer through entrepreneurial development: practices from innovation spaces," The Journal of Technology Transfer, Springer, vol. 45(6), pages 1655-1689, December.
    2. Gavin Moss & Peta Thomas, 2022. "Evaluating the adoption of e-banking services by SMEs in the common monetary area," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 202-212, November.
    3. Cleomar Marcos Fabrizio & Fabíola Kaczam & Gilnei Luiz Moura & Luciana Santos Costa Vieira Silva & Wesley Vieira Silva & Claudimar Pereira Veiga, 2022. "Competitive advantage and dynamic capability in small and medium-sized enterprises: a systematic literature review and future research directions," Review of Managerial Science, Springer, vol. 16(3), pages 617-648, April.
    4. Mehtap Özşahin & Büşra Alma Çallı & Erman Coşkun, 2022. "ICT Adoption Scale Development for SMEs," Sustainability, MDPI, vol. 14(22), pages 1-28, November.

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