Digital Transformation in South African SMEs

Slabbert Maximilian (2025) Digital Transformation in South African SMEs. Menedzsment Kar (2025-)-.

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Absztrakt (kivonat)

This dissertation examines the current state of digital transformation within small and medium enterprises (SMEs) in South Africa. SMEs are central to South Africa’s economic development and provide approximately 60% of employment, contributing significantly to GDP. There are, however, many persistent challenges which these SMEs face, including limited financing, inadequate infrastructure and skill shortages. Digital transformation has emerged from this as a possible solution for increasing competitive ability, expanding market access and operational efficiency. However, limited research exists on how South African SMEs adopt digital business models and how they may be related to company performance. This study plays a role in addressing this gap and analyses the prevalence of digital business models, the perceived associations between digital adoption and business outcomes, and the barriers and enablers which influence SME digitalisation.This is what lays the foundation for the three research questions: 1. Which digital business models are most utilised by South African SMEs? 2. What perceived associations exist between digital model adoption and performance indicators such as customer acquisition and revenue? 3. What barriers and enablers influence SME digitalisation in South Africa? To answer these questions, the research draws on two theoretical frameworks: the Technology–Organisation–Environment (TOE) model and Digital Business Model (DBM) theory. Both of which explain adoption conditions and value creation mechanisms in digitally transforming firms. Digital transformation, digitisation, and digitalisation are clearly distinguished to establish conceptual boundaries for the study.A quantitative research approach was applied, using a cross-sectional survey implemented through a structured questionnaire and distributed electronically. The sample consisted of 107 SMEs located across South Africa, selected using purposive sampling to ensure that respondents were owners and managers with digitalisation insights. A pilot study was conducted to refine terminology in the questionnaire and ensure the clarity of questions. Once collected and screened, the data were analysed through descriptive statistics, cross-tabulations, Pearson correlations, and multiple regression analysis, executed through Microsoft Excel.The analysis of model adoption provided omnichannel and subscription-based models as the most widely adopted among SMEs. Digital marketing as a standalone model was shown to be utilised the least, suggesting that South African SMEs have moved beyond basic digital presence and have embraced integrated and recurring revenue models. Digital adoption of models varied by sector, size and development stage, with retail and tourism sectors showing the highest levels of digital implementation. Medium enterprises more strongly represented the use of e-commerce and direct sales methods.Performance analysis showed only positive associations between digital adoption and key performance indicators. Digital adoption correlated with improvements in all categories from revenue to productivity level, with the strongest correlation being seen with revenue. Stronger relations were found with management attitude toward technology, which showed higher correlations with all indicators compared to the level of digital adoption. Multiple regression analysis confirmed that both digital adoption level and management attitude were statistically significant predictors in relation to performance, with managerial attitude consistently being the stronger predictor across the board. Revenue also explained the highest level of variance across the regression models, which indicated that the presence of leadership support and digital readiness tend to be related to more impactful financial outcomes.When examining the barriers and enablers, the study pointed to improving productivity and meeting market demand as the strongest drivers of digital adoption across every demographic. Accessing new markets and enhancing customer satisfaction were also prominent motivations. Conversely, the most significant barriers which were seen were lack of digital skills and unreliable infrastructure. Internal organisational resistance and supply chain-related disruptions were also frequently reported to be an issue, especially within the realm of mature firms. Issues such as cybersecurity and customer unreadiness paled in comparison in importance to other barriers. Together, the results suggested that internal capability constraints and infrastructural limitations pose the greatest challenges to digital advancement in South African SMEs.The contribution of this study is both academic and practical. It extends digital transformation literature by incorporating the South African context and offers insight into adoption patterns, enablers and constraints. The findings can inform SME owners, managers and policymakers on how to improve digital readiness, competitiveness and long-term sustainability within the South African sector. Moreover, the results highlight the importance of digital skill development, the need for infrastructural improvements and targeted policy to ease support for SME transformation.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Menedzsment Kar (2025-)-

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Gazdálkodási és menedzsment

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	Dél-Afrika, digitalizáció, kis- és középvállalkozás - KKV, technológiahasznosítás, üzleti modellek, vállalati teljesítmény
SWORD Depositor:	User Archive
Felhasználói azonosító szám (ID):	User Archive
Rekord készítés dátuma:	2026. Júl. 09. 11:01
Utolsó módosítás:	2026. Júl. 09. 11:01

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