Abstract
In the current era where digital transformation is no longer optional but essential, South African SMEs stand at a crossroads; either embrace technology or risk obsolescence in an increasingly competitive and sustainability-driven economy. This study examines how digital technologies impact the sustainability and competitiveness of Small and Medium Enterprises (SMEs) in South Africa. SMEs are vital to economic growth, but many encounter structural, financial, and infrastructure challenges in adopting digital tools. Driven by the Diffusion of Innovation (DOI) theory and the Technology–Organization–Environment (TOE) framework, the research used a qualitative multiple case study approach involving six SMEs from the Vhembe region. Furthermore, semi-structured interviews were used to collect the data, and thematic analysis software tools were used for theme analysis.
Findings show that technology integration improves operational efficiency, reduces costs, and boosts customer engagement, supporting both sustainability and competitiveness. SMEs reported advantages such as streamlined workflows, remote work capabilities, and better financial management using tools like QuickBooks, Nights Bridge, GIS software, and social media platforms. However, challenges like high data costs, limited digital literacy, and uneven infrastructure persist, especially in township areas. The study concludes that digital transformation is a strategic necessity for SMEs, providing resilience and growth opportunities in a rapidly digitalising economy. Recommendations include targeted policy measures, affordable digital infrastructure, and capacity-building efforts to close the digital divide and promote inclusive economic growth.