LAUSR

ABSTRACT This research investigated how mobile apps influence the dynamic capabilities of service sector micro and small enterprises (MSEs) in Lagos, Nigeria. Using an abductive method, data from 388 service sector MSEs was examined through exploratory factor analysis. The resultant model suggests that mobile app usage barely increases the absorptive capability (integrating new learning into the organization) of MSEs; rather, it strongly influences the ability to seize opportunities. The result implies that mobile app usage by service sector MSEs in Lagos deviates from the conventional views on the micro foundations of the dynamic capability framework, which argues that sensed opportunities are first analysed (shaped) before resources are deployed towards their maximization. These findings suggest that the service sector MSEs in Lagos seldom scrutinize opportunities before deploying resources to seize them. This study extends IS literature on how mobile apps help MSEs to exploit business opportunities in resource-constrained contexts.