ICT Utilisation within Experienced South African Small and Medium Enterprises

Abstract

The aim of the study was to examine the levels and purposes of Information and Communication Technology (ICT) utilisation within a sample of ICT aware South African Small and Medium Enterprises (SMEs). It is globally acknowledged that SMEs are significant in their contributions to economic growth, job creation, innovation of new products, income generation, poverty alleviation, technological progress and competitive advantage. However, SMEs are characterised by limited ICT utilisation. More studies are required to understand the purposes and levels of ICT utilisation within the South African SMEs, as well as the effect of firm size and age on ICT utilisation. To address this issue, an online based survey was conducted, and evidence gathered showed the following. (1) ICT aware South African SMEs are high users of technology. (2) Levels of ICT utilisation by ICT aware South African SMEs is sector specific. (3) ICT aware South African SMEs used ICT for cost saving, to collaborate with new and existing business partners, to handle collaboration within the firm and communication with the firm's stakeholders, to establish relationships with other organisations, and to enable strategic planning. (4) A firm's size has significant impacts on the levels of ICT utilization. (5) A firm's age impacts on the level of ICT utilisation of ICT aware South African SMEs; the more mature firms had more advanced information technology capability. The paper offers insights into the levels and purposes of ICT utilisation with implications for practitioners and academics.

The Impact of Information and Communication Technology Capability on the Competitive Advantage of Small Businesses

“…The results of this research confirm the findings of previous studies that ICT capability is positively related to entrepreneurial orientation. Thus, there is a tendency for entrepreneurial orientation to increase in parallel with an organization's good progress in ICT capability (Lucchetti & Sterlacchini, 2004;Harrigan et al, 2012;Higón, 2012;Adeniran & Johnston, 2014;Parida & Örtqvist, 2015;Parida et al, 2016;Yunis et al, 2017).…”

“…The difference between this and other studies lies in its use of a sample. This study uses small businesses as its sample, while previous research (Powell & Micallef, 1997;Maguire et al, 2007;Olatokun & Kebonye, 2010;Cakmak & Tas, 2012;Chibelushi & Trigg, 2012;Harrigan et al, 2012;Higón, 2012;Adeniran & Johnston, 2014;Kadadevaramath et al, 2015;Adeniran & Johnston, 2016;Yunis et al, 2017) has tended to focus on large companies. As a result, there are differences in the role of those resources that can create competitive advantage.…”

Understanding the gendered nature of developing country MSMEs’ access, adoption and use of information and communication technologies for development (ICT4D)

“…Adeniran and Johnston (2014) identify the levels and purposes of ICT utilization by select ICT-aware South African SMEs. The levels of ICT use are categorized along the axes of communication and information technology (IT) capabilities.…”