Received:
2026-05-25 | Accepted:
2026-08-14 | Published:
2026-09-30
Title
Digital technology adoption in small and medium-sized enterprises: employee readiness and organisational capability in South Africa
Abstract
Small and Medium-sized Enterprises (SMEs) in South Africa face increasing pressure to adapt to technological changes as digital transformation becomes essential for corporate resilience, competitiveness, and long-term sustainability. However, a significant gap remains in the literature on how these enterprises are prepared to implement and sustain digital transformation, particularly regarding organisational capabilities and digital skills. Government interventions and public policy support SMEs' digitalisation; however, their effectiveness is limited due to a lack of contextual relevance, accessibility, and low awareness. Therefore, this study examines the anticipated readiness and utilisation of digital technology among South African SMEs, focusing on the structural, strategic, and human capital capabilities required for successful transformation. A systematic desktop analysis was utilised using 86 peer-reviewed academic articles, policy documents, and institutional reports published over the past decade. The findings of the study reveal that although government intervention and digital support initiatives exist, they often fail to reach their intended beneficiaries due to misalignment with SME-specific challenges. Findings indicate notable disparities in SMEs' strategic alignment with digital goals, technology investment behaviours, employee digital literacy, and leadership preparedness. Moreover, the findings inform policy development and capacity- building efforts among policymakers, enterprise development agencies, and SME owners by contributing to the discourse on digital transformation in developing economies. Drawing on the Technology Organisation Environment (TOE) framework and the Resource- Based View (RBV), the study analyses the readiness of South African SMEs for digital transformation, identifying strategic, capability, skills, and policy gaps that constrain digital resilience and competitiveness.
Keywords
digital technology, SME’s, employee readiness, organisational capability, Resource-Based View
JEL classifications
M21
, O32
URI
http://jssidoi.org/ird/article/276
DOI
Pages
194-202
Funding
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
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