A contextual design artefact for the dynamic capabilities of SMEs in Nigeria : a critical realist study

Abstract

The tendency of SMEs to focus on their core business activities often results in them overlooking competences to maximise ICT usage which, in turn, leads to the escalation of costs and the diminishing of investment returns. This study, situated within a critical realist philosophy, seeks to explore and design a new ICT artefact for SMEs using the dynamic capabilities framework and mixed method approach. Dynamic capabilities (DCs) refer to an organisation’s ability to continuously renew internal resources towards ensuring business success and market competitiveness. The use of content analysis and retroduction enabled the initial qualitative study to analyse the interview responses gained from 16 SMEs situated in five of the most economically active states in Nigeria. The study then developed and evaluated the ICT artefact amongst 20 SMEs in similar contexts using the elaborated action design research method. The key findings revealed how SMEs in Nigeria use ICTs (in the real domain) to carry out their business processes (in the actual domain) using their DCs (in the empirical domain). The findings suggest that, despite the existence of government support for SMEs across Nigeria, these programmes are generally inaccessible using ICTs. This study identified a critical need for the creation and evaluation of a contextual ICT artefact (i.e. mobile app) suited to Nigeria and in probably other SMEs operating in similar low-income contexts. The evaluation results confirmed the usefulness of the artefact as a suitable tool which would assist SMEs in enhancing their DCs and thus maximise opportunities. This thesis presents a theoretical contribution to IS theory through the identification of absorptive, adaptive and innovative DCs which enhance the competences of SMEs to seize business opportunities. The other theoretical contribution to IS lies in using critical realism to reveal the causal powers of mobile apps and the events generated in SMEs. The findings also contribute to practice by outlining a way in which SME owners can effectively use ICTs to maximise their business capabilities. The thesis recommends that contextually designed ICTs should serve as the bedrock for policy development. Policy makers should continuously sensitise SME owners as to the benefits of ICTs by reinforcing ICT education and creating environments which enable ICT growth.