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Review Open access Aug 2026

Dynamic Capabilities and Digital Competitiveness: A Sustainability-Focused Research Agenda for ICT Service SMEs in Developing Economies

The rapid advancement of digital technologies has transformed competitive dynamics across industries, particularly among Information and Communication Technology (ICT) service Small and Medium Enterprises (SMEs) in developing economies. To remain competitive amid technological disruption, evolving customer expectations, and sustainability challenges, firms must continuously adapt their resources and capabilities. Drawing on Dynamic Capability Theory (DCT), this paper proposes a conceptual framework that examines the role of dynamic capabilities in enhancing digital competitiveness and organizational sustainability. The study further integrates the Triple Bottom Line (TBL) perspective by conceptualizing sustainability through economic, social, and environmental dimensions. Through a comprehensive review of contemporary literature, the paper argues that dynamic capabilities enable ICT service SMEs to respond effectively to environmental changes, strengthen digital competitiveness, and achieve sustainable competitive advantage. The proposed framework contributes to the literature by extending DCT into the domains of digital competitiveness and organizational sustainability while offering practical insights for SME managers and policymakers seeking to foster resilience, innovation, and long-term growth. The paper concludes by highlighting future research directions for advancing sustainable digital transformation among ICT service SMEs.

S. Shami, N. Rashid, Y. Hisham et al. · 0 citations
Review Open access Aug 2026

An Empirical Analysis of Motivation and Challenges of Industry 4.0 Adoption in Malaysian ICT SMEs

Adoption of Industry 4.0 (IR 4.0) technologies by Malaysian Information and Communication Technology (ICT) small and medium-sized organizations (SMEs) are becoming increasingly important in facilitating digital transformation and long-term economic viability. Adoption in the SME service sector is still uneven despite significant national initiatives encouraging digitalization. 50 managerial-level respondents from ICT SMEs that have implemented at least one IR 4.0 technology were given an online survey as part of a quantitative study design. Descriptive statistics were used to analyze the gathered data to determine adoption trends, important factors, and significant challenges. The results show that the main motivation of IR 4.0 adoption are increased time-to-market, cost savings, customer requirements, and competitive pressure. The findings also show differences in company size, medium-sized enterprises show more advanced and integrated adoption of IR 4.0 technologies, especially in big data analytics and artificial intelligence, whereas micro enterprises concentrate on basic technologies like cloud computing and cybersecurity. The main challenges were found to be low strategy awareness, lack of staff knowledge, and ongoing employee education. These results emphasize how crucial strategic alignment and human capital development are to facilitating successful digital transformation. Policymakers and business professionals can use the study's practical findings to create focused initiatives that increase IR 4.0 adoption and enhance Malaysian ICT SMEs' competitiveness.

N. Rashid, Y. Hisham, S. Al-shami et al. · 0 citations