ICT-related dynamic capabilities and SMEs’ performance: An analysis during the economic stagnation in Belarus

Information and communication technologies (ICTs) are effective in helping firms adapt to unstable external conditions. Specifically, the development of smartphones, mobile apps, social media, and payment systems have enabled both well-developed corporations and small to medium-sized enterprises to improve their performance and competitiveness. The focus of researchers and managers has shifted from the availability and functionality of ICTs to how effectively they can be used. However, there is a lack of agreement on the definition of ICT-related capabilities. Therefore, this study investigates the relationship between SMEs’ ICT-related dynamic capabilities and their performance during economic stagnation. The study introduces unique constructs for ICT-related capabilities based on dynamic capability theory. The main results of the structural equation modeling procedure demonstrate that the capability to align business development with ICT implementation and CRM capabilities have a direct positive effect on SMEs’ performance. Additionally, the estimated results indicate that the speed of industry change affects all ICT-related dynamic capabilities