Expert Journal of Business and Management (Apr 2021)
Anticipating the Impact of Disruptive Technologies on SMEs in Kwazulu-Natal: A Case Study
Abstract
This article investigates a range of disruptive technologies which have been identified as being disruptive or potentially disruptive to the current SME business models. By not being cognizant of the possible effect that these modern technologies may have on a variety of business sectors, SMEs run the risk of either losing business opportunities or not being able to participate in new business ventures in future so the competitive edge is lost. The impact of disruptive technologies is rapidly gaining momentum on a world-wide scale. Three complimentary disruptive technologies, associated with the 4th Industrial Revolution (4IR) have been selected for this study viz. Big Data, Internet of Things (IoT), and Artificial Intelligence (AI). A single case study following the qualitative method was considered suitable to explore, probe and gain a clear understanding from a SME perspective, whether these three disruptive technologies have the potential to influence the business either positively or negatively. The focus of the questioning was directed at how SMEs intend to go about either engaging with, or choosing to delay, the implementation of Big Data, IoT and AI; and the possible impact such strategic decisions may have on the business. Data was collected from a sample of senior managers and supervisors as well as a focus group of employees. Semi-structured interviews were scheduled using face-to-face recorded interviews as well as a recoded conversation with a focus group. The findings indicated that senior managers are aware of some aspects of disruptive technology and have been thinking proactively about adopting new technologies, however, there was significant room for greater integration and implementation so as to become a market leader. Failure to engage with new technologies in the very near future could result in a SME becoming obsolete and less competitive while possible new entrants to the market may become the new ‘winners’. Strategic decisions in terms of the likely impact of disruptive technologies on SMEs, requires innovative approaches to speed up implementation. The impact of Covid-19 has highlighted the urgency of SMEs to embrace disruptive technologies with immediate effect.
