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

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.