Developing Business Architecture for SMEs: A Strategic Tool for Capability Orchestration and Managing Dynamisms

Abstract

Small and Medium Enterprises (SMEs) are increasingly faced with competitive pressure due to swift and constant change to the dynamic and highly interconnected environment in which they operate. Competing in this dynamic ecosystem, SMEs need a strategic tool for managing coevolution with the dynamic environment in order to create sustained value. Drawing from the specific SME characteristics operating in a collaborative network ecosystem of firms, this paper elicits the specific strategic management requirements that need to be satisfied by a Business Architecture. Extensive exploratory literature review and semi-structured interviews are used to explicate the underlying drivers of SME’s requirements for business architecture that need to be addressed by the requisite BA practice. The paper finds that, the BA practice must possess the capabilities to guide and assist the SMEs to adapt with the dynamic collaborative ecosystem of firms and sense, leverage and orchestrate the network of resources and ICT capabilities to create sustained value. This paper concludes with some guidelines for developing the business architecture-enabled journey toward creating sustained value within the said dynamic ecosystem.