The dynamic capabilities of small and medium‐scale enterprises using mobile apps in Lagos, Nigeria

Abstract This paper draws on the framework of dynamic capabilities (DC) to make sense of how small and medium‐sized enterprises (SMEs) in Lagos use mobile apps as a means of survival in a developing economy. The framework of DC asserts that organisations could compete favourably despite unpredictable environments; it also suggests that organisations develop DCs independently and differently. The study adopts a qualitative approach to identify the absorptive, adaptive, and innovative capabilities of SMEs in Lagos with a view to make sense of how mobile apps are used to enhance the different capabilities. The findings from 20 SMEs revealed a significant use of social media apps, productivity apps, and mobile banking apps. Further investigations identified 15 DC constructs whose impact on SMEs could be enhanced using appropriated mobile apps. The paper makes recommendations on how SMEs can better satisfice through contextually designed mobile apps that meet the unique needs of the SMEs. The study also contributes to information system and DC framework by identifying mobile apps used by SMEs, revealing the DC constructs of SMEs, and understanding how SMEs use mobile apps to enhance DCs in a developing country economy and African context.