Impact of ICT Usage and Dynamic Capabilities on the Business Resilience of SMEs During the COVID-19 Pandemic: A Case of Galle District

Abstract

The primary concern of this study is to examine how Information & Communication Technology (ICT) usage and dynamic capabilities impact the business resilience of Small and Medium Scale Enterprises (SMEs) to survive and continue during the COVID-19 pandemic. The data were collected from a sample of 129 ICT-used SMEs employing face-to-face and telephone interviews. Partial Least Square-Structural Equation Modelling (PLS-SEM) was used to analyse the data through SmartPLS software. The study findings reveal a significant positive relationship between ICT usage and business resilience during the pandemic. And ICT usage significantly affects the dynamic capabilities of the business. Results also claim that dynamic capabilities play a complementary mediating role in the relationship between ICT usage and business resilience. Consequently, the study concludes that the adoption of ICT and the ability to integrate, build and reconfigure the available resources of SMEs with ICT enablers enhanced their resilience and ensured survival during the pandemic. The research design, the methodology utilized, and the findings of this study will benefit researchers, policymakers, and entrepreneurs and contribute to future studies regarding the regrowth and resilience of SMEs during a crisis.