Page 45 - IJSA, Vol. 7, No 1, 2024

International Journal of Science Annals, Vol. 7, No. 1, 2024
рrint ISSN: 2617-2682; online ISSN: 2707-3637; DOI:10.26697/ijsa

Introduction
In the epoch of digital technologies (DTs), both has become popular among SMEs, particularly in the
academics and practitioners have strongly been healthcare sector (Mashal & Morrish, 2023; Raimo et
advocating for the value of achieving dynamic al., 2023). In support of the above viewpoint, a report
capabilities (e.g., Ozanne et al., 2022). Along the same published by Deloitte UK’s Centre for Health Solution
lines, a plethora of research (e.g., Bolosha et al., 2022; (2020) state that about 65.0% of SMEs in the healthcare
Fatoki, 2021; Gaglio et al., 2022; Matekenya & Moyo, sector have increased the adoption of DT (Mashal &
2022; Rashidirad & Salimian, 2020) posit that achieving Morrish, 2023; Raimo et al., 2023). Recent scholarly
dynamic capabilities requires an inclusive digital work by Moretti et al. (2023) defines digitalization as
strategy. This paper argues that there is a need to the process of converting information into digital
enhance the dynamic capabilities (DC) of Small and format.
Medium Enterprises (SMEs) to contribute to economic In a broader context, a plethora of research (Moretti et
expansion (Khurana et al., 2022; Matarazzo et al., 2021; al., 2023) refers to digitalisation as the process of
Suhendi et al., 2020). As emphasized by Farida and combining DTs into everyday life (Warner & Wäger,
Setiawan (2022); Weaven et al. (2021), it is substantial 2019), business processes and enterprises (Achieng &
that SMEs in developing nations enhance the DC to Malatji, 2022). Recent scholarly works found that
attain a competitive edge (Owoseni & Twinomurinzi, digitalisation can enable SMEs in the healthcare sector
2019) and to compete with multinational enterprises in to improve health services (Raimo et al., 2023), reduce
the emerging digital world (Achieng & Malatji, 2022; cost (Moretti et al., 2023), reduce health inequalities
Suhendi et al., 2020). (Saifudin et al., 2021), gain access to electronic health
Baloyi and Khanyile (2020) alluded that the substantial records (Spanò et al., 2023), provide services to patients
role of SMEs as the lubricants of economic expansion in (Cerchione et al., 2023) and allow healthcare providers
South Africa has largely been recognized. Sibiya et al. to monitor patient’s vital signs (Balta et al., 2021). A
(2023) and Tshwete (2020) have shown the substantial growing body of literature on DTs (Khurana et al., 2022;
role of SMEs in eliminating poverty, creating job Moretti et al., 2023) has shown that digitalisation can
opportunities (Mashavira et al., 2022) and enhancing enhance SMEs’ DC (Raimo et al., 2023; Warner &
economic expansion (Loury-Okoumba & Mafini, 2021; Wäger, 2019). In the emerging digital world and with
Masocha, 2019; van Staden, 2022). Several government the scarcity of resources (Moretti et al., 2023), budget
agencies in South Africa such as the Department of constraints (Sumaili et al., 2018), and limited
Trade and Industry (DTI), SEDA, the Department of opportunities to directly influence the market structure
Small Business Development (DSBD), the National (Schoemaker et al., 2018), DC is an important set of
Empowerment Fund (NEF), and the Small Enterprise capabilities that SMEs should have because it will
Finance Agency (SEFA) prioritize support for SMEs enable them to quickly detect market changes before
(Kelly et al., 2021). According to Sibiya et al. (2023), rivals do (Engelmann, 2024).
the number of registered SMEs in South Africa during Engelmann (2024) states that the development of DC
the first quarter of 2021 was projected to be close to 2.3 among SMEs relies on sensing, seizing, and
million (SEDA, 2021). Baloyi and Khanyile (2020) state reconfiguring (Khan et al., 2021). Firstly, sensing
that SMEs play a substantial role in the economy as they capabilities explain the evaluation of opportunities that
make up 95.0% of businesses, which contributes 60.0% are available in the market (Engelmann, 2024); with
to job creation (Venter & Hayidakis, 2021) and around DTs helping SMEs to sense as they can identify
45.0–50.0% of South Africa’s Gross Domestic Product opportunities such as discovering and collaborating with
(GDP) (Loury-Okoumba & Mafini, 2021; Mashavira et patients on the internet (Spanò et al., 2023). Secondly,
al., 2022; Matekenya & Moyo, 2022). Furthermore, a seizing capabilities entails enterprises’ reaction to
report by the National Planning Commission (2020) has market requirements to reduce cost (Engelmann, 2024;
documented that SMEs in South Africa will create Khan et al., 2021). DTs can help SMEs in the healthcare
90.0% of new job opportunities by 2030 (Kelly et al., sector seize the opportunity of doing business on the
2021; Matekenya & Moyo, 2022). Nonetheless, many Internet at a lower cost (Raimo et al., 2023; Suhendi et
scholars (e.g., Mhlongo & Daya, 2023; Sibiya et al., al., 2020; Warner & Wäger, 2019). Lastly, reconfiguring
2023) have identified a plethora of challenges capabilities is the development of new enterprises’
preventing the expansion of SMEs in South Africa. capabilities to support new business models
A growing body of literature on SME growth has shown (Engelmann, 2024).
that a lack of digital technologies (Bvuma & Scholarly literature on DC (e.g., Khurana et al., 2022;
Marnewick, 2020), poor infrastructure (Loury- Zamani et al., 2022) state that the development of
Okoumba & Mafini, 2021; Sibiya et al., 2023) and business models among enterprises is integral to
limited access to technology (Kademeteme & creating sustainable growth (Engelmann, 2024; Khan et
Twinomurinzi, 2019), are the major reasons that prevent al., 2021). Along the same lines, empirical studies
SMEs from enhancing their DC (Hermawati & conducted on DC (Engelmann, 2024; Warner & Wäger,
Gunawan, 2019). Extant research (e.g., Mashal & 2019) have argued that SMEs must develop new
Morrish, 2023; Raimo et al., 2023) suggest that SMEs business models to provide services to customers
may resort to digitalisation to tackle their challenges to (Zamani et al., 2022). DTs can enable SMEs in the
enhance the DC (Khurana et al., 2022). Digitalisation Healthcare sector to provide services to their patients on

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