Adoption of dynamic capabilities with cloud computing in South African small and medium enterprises.
Nkopodi, M.B.
Nkopodi, M.B.
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Abstract
Small and medium-sized enterprises (SMEs) are becoming a productive driving force for economic growth and development of many developing countries. This is because the SME sector is the driving force for job creation and a significant contributor to the Gross Domestic Product (GDP) of various countries. Despite contributing to economic development, the failure rate of SMEs in developing countries, such as South Africa, is still at its highest because of many challenges. These challenges include: (1) Imports from foreign countries, (2) lack of access to financial sponsorship, (3) the issue of wage rate, (4) lack of access to technology, (5) lack of management skills and (6) other global challenges. Therefore, to minimize these challenges, SMEs in developing countries need to develop dynamic capabilities that will enable them to achieve competitive advantage. However, dynamic capabilities alone are not sufficient for the organizations’ performance improvement, but their contribution to performance is significant. Therefore, SMEs need to adopt dynamic capabilities with Cloud Computing. This research study developed a model for the adoption dynamic capabilities and cloud computing in South African SMEs. The study was based on UTAUT, DOI and Dynamic capabilities theory and followed a quantitative approach. Creative research systems calculator was used to determine the sample size of 196 from a population of 400. The results indicated that Trialability;
Performance Expectancy; Security, Seizing and Reconfiguring, have a positive influence on adoption dynamic capabilities and cloud computing in South African SMEs. While other complexity, social influence, and sensing were found to have a negative influence on the adoption dynamic capabilities and cloud computing in South African SMEs. The study developed a model that provides a guidance on how SMEs can adopt dynamic capabilities with Cloud Computing to achieve competitive advantage in the dynamic business environment. The study concludes with recommendation that future studies may be conducted with the by integrating other factors that influence the adoption of DCs with Cloud Computing within SMEs. This will help improve the model developed in this study. Other theories could be incorporated. Future studies could also look at using a different research methodology and data collection instruments. Data could also be collected from other countries.
Description
Submitted in Fulfilment of the Requirements for the Degree Master of Computing: Informatics in the Department of Informatics: Faculty of Information and Communication Technology at the Tshwane University of Technology
Date
2023-10-25
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Tshwane University of Technology
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Keywords
Small and medium-sized enterprises, Cloud computing, Gross Domestic Product (GDP, Performance expectancy, South Africa