Abstract
This thesis examines the transformative impact of the Fourth Industrial Revolution (4IR) and Fifth Industrial Revolution (5IR) on the growth trajectories of micro, small, and medium enterprises (MSMEs) in Johannesburg, South Africa. As digital technologies reshape global industries, South African MSMEs encounter distinct challenges and opportunities in adapting to this rapidly evolving environment. This study’s primary research question is: “What strategic growth approaches can MSMEs adopt in the era of digitisation?” To address this question, the research examines the barriers to digital adoption, strategies for overcoming these challenges, the role of digitalisation as a catalyst for growth, and the preparations necessary for future technological advancements.
The study employs a qualitative approach to collect insights from owners of MSMEs and academic experts, utilising semi-structured interviews to gather insights from both groups. The findings reveal that, while many MSMEs have embraced digital marketing and social media platforms, there is still limited adoption of advanced digital technologies. The primary challenges include financial constraints, inadequate technological expertise, infrastructural limitations, and stakeholder resistance to change.
In response to these challenges, the thesis introduces the Dynamic Innovation, Measurement, Adaptiveness, Sensing, and Evaluation (DYNAMISE) Framework, an integrated model designed to guide MSMEs through their digital transformation journeys. This framework is built upon two fundamental principles: the Defensive and Offensive approaches. The Defensive Approach shields MSMEs from external disruptions by enhancing risk management, streamlining internal processes, and fostering resilience to navigate uncertainties. Conversely, the Offensive Approach prioritises the pursuit of emerging opportunities, encourages innovation, and actively shapes the business landscape through strategic investments, technological advancements, and meaningful customer engagement.
The core principles are supported by additional elements that improve the overall effectiveness of the framework. Performance management includes the ongoing monitoring, evaluation, and optimisation of processes to ensure they align with strategic objectives. This approach facilitates informed decision-making and enhances operational efficiency. Additionally, sensing and seizing emphasise the importance of recognising emerging opportunities and...