Title: The impacts of ICT utilisation and dynamic capabilities on the competitive advantage of South African SMEs
Authors: Tejumade V. Adeniran; Kevin A. Johnston
Addresses: Department of Information Systems, University of Cape Town, South Africa ' Department of Information Systems, University of Cape Town, South Africa
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.
Keywords: information technology; communications technology; ICT utlisation; utilisation; dynamic capabilities; competitive advantage; small and medium-sized enterprises; SMEs; South Africa; absorptive capabilities; adaptive capabilities; innovative capabilities; networking capabilities; sensing capabilities; integrative capabilities; innovation; integration.
International Journal of Information Technology and Management, 2016 Vol.15 No.1, pp.59 - 89
Accepted: 21 Nov 2014
Published online: 30 Dec 2015 *