Towards an understanding of the strategic use of mobile ICT in small and medium enterprises

Abstract

Mobile information and communication technology (ICT) has the capability to strategically influence and completely transform SMEs. It provides heterogeneous benefits in information sharing, collaboration and corporate interactions. However, mobile resources do not improve competitive performance on their own. Instead, purposeful or tacit strategic actions are required to combine existing resources in innovative ways, to acquire additional valuable resources or to dispose of redundant resources. Companies have to accomplish this quickly and repeatedly if they are to remain competitive. This research project employs the strategic management theory of dynamic capabilities (DCs) in a qualitative case study to analyse the transformational capacity of mobile ICT in each SME from a strategic perspective. Candidates from ten SMEs were interviewed. The data was analysed to identify: a) the DCs that are essential for mobile transformation in SMEs, and b) the practices that develop and maintain the effectiveness of these capabilities. Eight distinct mobile DCs are identified, each contributing to firm performance, profitability or strategic advantage over competitors. The results were consistent with previous research in DCs by confirming a maximised effectiveness of capabilities when they are tautly coupled with business strategy. The dissertation concludes with valuable guidelines and a conceptual framework for SMEs to strategically utilise mobile ICT and achieve mobile transformation.