Mobile apps usage and dynamic capabilities: A structural equation model of SMEs in Lagos, Nigeria

Adebowale Owoseni, Hossana Twinomurinzi

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)


Significant knowledge exists regarding the application of dynamic capability (DC) frameworks in large firms, but their impact on smaller organisations is yet to be fully researched. This study surveyed 1162 small and medium sized enterprises (SMEs) in Lagos in an effort to understand how SMEs in developing country contexts use mobile apps to enhance their businesses through DCs. Through the use of the covariance-based structural equation modelling (SEM) technique, the study explored the fitness of a conceptual formative model for SMEs. The model assembled 7 latent variables namely: mobile app usage, adaptive capability, absorptive capability, innovative capability, opportunity sensing ability, opportunity shaping ability and opportunity seizing ability. Subsequently, 15 hypotheses aimed at testing the relationships between the latent variables were developed and tested. The findings revealed that mobile app usage increases the adaptive, absorptive and innovative capabilities of SMEs. Absorptive capabilities help SMEs to maximise opportunities, while innovative capabilities negatively influence SMEs’ tendency to maximise opportunities. The results failed to establish a direct relationship between mobile app usage and SMEs’ ability to maximise opportunities. The research outcomes indicate that SMEs in Lagos respond to opportunities innovatively but they seldom exhibit innovation in order to create opportunities. The heterogeneous nature of SMEs complicates any clear-cut narrative as to how SMEs in Lagos should employ mobile apps to create and maximise opportunities. However, mobile apps could induce innovation and, as such, impact significantly when developed and applied to the contextual requirements of SMEs. The research revealed the untapped potential of SMEs’ mobile app usage in Lagos.

Original languageEnglish
Pages (from-to)2067-2081
Number of pages15
JournalTelematics and Informatics
Issue number7
Publication statusPublished - Oct 2018
Externally publishedYes


  • Absorptive capability
  • Adaptive capability
  • Conceptual model
  • Dynamic capability (DC)
  • Innovative capability
  • Mobile app
  • Small and medium scale enterprises (SME)
  • Structural equation model (SEM)

ASJC Scopus subject areas

  • Communication
  • Computer Networks and Communications
  • Law
  • Electrical and Electronic Engineering


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