The contribution of mobile ICT to the dynamic capabilities of SMEs: a focus on informal traders in Windhoek, Namibia

Abstract

As Mobile ICT usage surges, there is a case for making sense of how it contributes to innovation. This study sought to determine Mobile ICT's contribution to the dynamic capabilities of informal traders in Windhoek. Through the qualitative interpretive paradigm, data were collected from 34 informal traders located at the Hilton Hotel market and Post Street Mall in Windhoek. The study revealed that informal traders possess innovative dynamic capabilities [introduction of new products], absorptive dynamic capabilities [marketing], adaptive dynamic capabilities [responding to market activities], and network dynamic capabilities [use of various ways of mobile communication], but they do not effectively implement Mobile ICT to enhance these capabilities. The majority of the users use basic functionalities [text messages and phone calls] offered by Mobile ICT. The primary reasons given for not fully adopting Mobile ICT were the high cost of acquiring mobile devices and mobile data to access the internet, as well as a lack of technical knowledge. The study recommends that over and above financial schemes being made available, a unique mobile device that intuitively enables dynamic capabilities is required. This type of device would eliminate the challenges that come with the adoption of Mobile ICT and enable traders to conduct business better, thereby reducing the effects of disruptions such as COVID-19 on the economy. This research also contributes to the use of the theory of dynamic capabilities at a micro level, which has not been attempted before.