INVESTIGATING BARRIERS TO ICT ADOPTION AND ITS EFFECT ON SMES’ SERVICE DELIVERY IN THE WESTERN CAPE, SOUTH AFRICA

Abstract

Small and Medium‑Sized Enterprises (SMEs) play a critical role in economic development; however, their capacity to deliver efficient and competitive services increasingly depends on adopting Information and Communication Technologies (ICTs). This study investigates the barriers to ICT adoption and examines their effects on service delivery among SMEs in the Western Cape. The findings reveal four major barriers constraining ICT uptake: a lack of digitalisation, inadequate ICT infrastructure, limited automation, and broader technological adoption challenges. The lack of digitalisation was found to hinder SMEs’ transition from manual to streamlined digital processes, thereby affecting operational efficiency. Inadequate ICT infrastructure, including unreliable connectivity and limited access to technological resources, further constrained effective ICT utilisation. Additionally, reliance on manual procedures led to limited automation, resulting in slower, less consistent service delivery. Technological adoption challenges, such as skills gaps, resistance to change, and financial constraints, also emerged as significant obstacles. Collectively, these barriers negatively impact SMEs’ ability to enhance productivity, improve customer service, and remain competitive in a digitally evolving environment. The study concludes by recommending targeted digital‑literacy initiatives, infrastructure improvements, increased support for automation, and structured interventions to strengthen SMEs’ technological readiness for sustainable ICT integration.