Digital Capability and Performance of Micro, Small, and Medium-Scale Enterprises: A Review
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Date
2024-03
Authors
Kibor, Joy
Journal Title
Journal ISSN
Volume Title
Publisher
EANSO
Abstract
Digital Capability is considered one of the cardinal strategies that MSMEs
can adopt to enhance their competitiveness and improve performance.
However, several business enterprises continue to experience various
setbacks, such as poor performance and slow growth, where almost 70
percent of SMEs close their businesses before their third year in operation.
This may be attributed to an unfavorable business environment and rapid
technological changes, requiring an equal and efficient change in business
strategy. This paper, therefore, sought to assess the effect of digital
capability on the performance of micro, small, and medium enterprises.
Specifically, the study aimed to evaluate the influence of digital
infrastructure, organization competency, and digital operations on the
performance of Micro, Small, and medium-scale enterprises. The study
adopted a qualitative survey design where the scholar did a literature search
on different online databases, mainly Google Scholar, EBSCO, and Science
Direct. The study was desk research, which involved reviewing academic
journals, scholarly articles, and published research. The findings indicated
that digital infrastructure, organization competency, and digital operations
significantly positively affected the performance of micro, small, and
medium enterprises. The study recommended that further studies be carried
out using quantitative techniques to assess further the relationship between
digital capability and the business sustainability of MSMEs.
Description
Article
Keywords
Digital Capability, Organizational Competence, Organizational Performance, Micro, Small and Medium Enterprises
Citation
Kibor, J. (2024). Digital Capability and Performance of Micro, Small, and Medium-Scale Enterprises: A Review. East African Journal of Business and Economics, 7(1), 83-87. https://doi.org/10.37284/eajbe.7.1.1810