Abstract
This study explored the strategies supporting digital innovation adoption amongst Information and Communication Technology (ICT) Small, Medium and Micro Enterprises (SMMEs) in Gauteng, South Africa. Despite policy initiatives promoting digitalisation, ICT SMMEs face persistent barriers including infrastructural volatility, limited financing, and skills shortages. The study’s primary research question was: What strategies support the decision-making process of digital innovation adoption in South African ICT SMMEs?
Adopting an interpretivist paradigm and qualitative exploratory design, the study collected data through semi-structured interviews and written responses from five ICT SMME owner-managers between May and August 2025. Participants were deliberately selected based on direct experience with the adoption of digital innovations. Data was analysed using Braun and Clarke's (2006) thematic analysis approach, generating five key themes: internal organisational drivers, external environmental factors, perceived performance impacts, adoption challenges, and adaptive strategies. Findings revealed that digital innovation adoption amongst ICT SMMEs is not a linear process but an adaptive negotiation within contested institutional terrain. Financial constraints and skills gaps emerged as the most cited barriers, whilst incremental implementation, collaborative learning, and leadership commitment functioned as key enablers. The study extended the contested terrain model by integrating it with the technology-organisation-environment framework, the resource based view and the dynamic capabilities theory, demonstrating how SMMEs exercise strategic agency despite structural constraints.
Findings revealed that digital innovation adoption amongst ICT SMMEs is an adaptive negotiation shaped by contested institutional terrain. Practically, the findings inform SMME managers on phased adoption strategies and guides policymakers towards affordability-focused interventions, streamlined regulatory processes, and targeted skills development programmes. The study demonstrates that sustained digital transformation requires both internal resilience and institutional reform to bridge policy intentions with operational realities. These insights contribute to national policy dialogues on digital transformation by demonstrating how SMMEs can build resilience within South Africa’s evolving innovation ecosystem.