A dynamic capabilities theory (DCT) lens, combined with the innovation adoption theory, provides a powerful framework for analysing the digitalisation and innovation challenges that South African SMMEs navigate through. A combination of the SMMEs’ ability to sense and seize new opportunities and behavioural factors driving the acceptance and adoption of new technologies remains critical to the sustainability of these entities.

Grounded in DCT, this study identifies digitalisation, value co-creation, and supply chain networks as crucial enablers that help SMMEs in South Africa sense and seize opportunities in unpredictable and resource-constrained environments (Teece, Pisano & Shuen 1997). For example, sensing capabilities enhance SMMEs’ use of digital technologies such as digital platforms, data analytics, and information-sharing systems (Bleady, Ali & Ibrahim 2018). These tools help identify customer demand, supply chain disruptions, and market conditions. As a result, digitalisation artefacts such as social media platforms, online booking platforms, digital payment systems, and customer relationship management tools (Chamboko–Mpotaringa 2025; Mosweunyane, Rambe & Dzansi 2019) provide SMMEs with unprecedented opportunities to enhance customer visibility, which is essential for fostering value co-creation opportunities (collaborative innovation) with their clients, suppliers, and other stakeholders within increasingly digitally networked supply chains (collaborative partnerships through digital platforms) (Al–Omoush, De Lucas & Del Val 2023; Royo-Vela & Velasquez Serrano 2021; Teece 2007; Warner & Wäger 2019). By sensing opportunities, SMMEs can seize and transform these prospects into sustainable outcomes. Activating this process involves assembling limited resources, adopting collaborative digital platforms, and reconfiguring supply chain relationships. Furthermore, SMMEs can leverage their ability to seize opportunities by investing in digital technologies that promote value creation and operational integration, which are crucial for the continuous renewal of organisational routines and the expansion of network structures. However, in emerging economies like South Africa, DCT capabilities are essential for building supply chain resilience, enhancing competitiveness, and sustaining value co-creation amid institutional uncertainty and infrastructural constraints (Kraus et al. 2022; Teece, Peteraf & Leih 2016).

Whereas, drawing on innovation adoption theory, Rogers (1962), digitalisation facilitates value co-creation and strengthens SMMEs’ supply chain networks. Driven by SMMEs’ perceptions of key innovation attributes, predominantly digital technologies that clearly demonstrate advantages in efficiency, coordination, and decision-making can be a game-changer towards realising their goals. Additionally, digital technologies should be compatible with existing SMMEs’ routines and their contextual complexity. The theory further places emphasis on digital tools and their associated collaborative platforms that enable SMMEs to run experiments, thereby reducing uncertainty while promoting learning (Oliveira & Martins 2011; Rogers 2003). However, digitalisation enhances interactive engagement and shared learning among supply chain players, improving value co-creation and fostering more integrated, transparent, and resilient supply chain networks (Gunasekaran, Subramanian & Papadopoulos 2017; Vargo & Lusch 2008).

The rapid advancement of digital technologies has transformed global supply chain systems, yet many SMMEs in South Africa continue to face challenges in adopting and integrating digital tools within their supply chain networks. These limitations constrain their ability to improve operational efficiency, enhance collaboration with supply chain partners, and respond to market volatility. Although digitalisation is recognised as a key enabler of competitiveness, the mechanisms through which it supports supply chain efficiency and value co-creation within SMME networks remain insufficiently explored in current research. This study, therefore, investigates how digitalisation influences supply chain networks and the extent to which it enhances value co-creation and overall performance in SMMEs. This problem statement sheds light on the challenges faced by South African SMMEs in their journey toward digital adoption. It highlights the areas of efficiency, collaboration, and competitiveness that can be enhanced through improved digital integration. The statement identifies a knowledge gap, providing a solid base for the study to focus on how to help these businesses overcome challenges and succeed in a digital world.

This study employs a quantitative research survey designed to explore the intriguing effects of digitalised tourism supply chains on value co-creation within SMMEs. The approach enabled the systematic measurement and analysis of relationships between digitalisation, value co-creation, and supply chain networks. The research method employed in this study of 288 SMMEs in KwaZulu-Natal and the Eastern Cape (126 from KwaZulu-Natal and 162 from the Eastern Cape) was a cross-sectional survey and a self-administered questionnaire. The information was gathered at two significant tourism-related events that took place in Gqberha (Eastern Cape Province) and Durban (KwaZulu-Natal Province) in South Africa. In terms of size and economic activity, the two cities are the biggest in the provinces that are being examined. The 3-day events in the two cities were organised by the national and provincial governments and were intended to unite stakeholders in the tourism industry. The workshops conducted in KwaZulu-Natal (KZN) and the Eastern Cape made it possible for us to conduct a cross-sectional self-administered survey. They are frequently used in tourism studies to obtain a snapshot of current practices from a defined population at a single point in time (Castillo, Rescalvo-Martin & Karatepe 2025). This method allows for the effective collection of quantitative data to look at relationships among important variables. For our study, we focused on SMMEs that embraced digitalised supply chain practices and were eager to share their experiences through our survey. We aimed to exclude those SMMEs that had not yet ventured into digitalisation or were hesitant to engage with us. Participants took part in an engaging online survey, in which their insights were gathered through a thoughtfully designed questionnaire. The variables had different 5-point Likert scale items. Digitalisation items were never, hardly, sometimes, frequently, and always. The data were examined through the lens of inferential statistics to uncover how digitalised supply chains influence value co-creation in SMMEs. The statistical analysis employed correlation and regression analysis to investigate the relationship between digitalised supply chains and value co-creation in SMMEs. The relevant ethics committee approved the study, and all participants provided informed consent before participating in the survey. The informed consent statement was provided to all participants before they completed the survey, and they were informed of their right to withdraw from the study at any time without penalty or consequence.

The following section presents the descriptive and inferential statistics analysis of the study data. A 5-point Likert scale questionnaire was developed and administered, covering three primary domains: digitalisation, supply chain value co-creation, and supply chain networks. The questionnaire’s reliability was confirmed through internal and external consistency checks, with Cronbach’s alpha coefficients exceeding 0.7. Data were collected from a sample of 288 respondents.

Before conducting the regression analysis, all key assumptions underlying the regression analysis were assessed and met, ensuring that the model estimates are reliable. Reliability tests and validity tests were performed. All items were deemed appropriate for subsequent statistical analysis. As reflected in Table 1, all constructs recorded Cronbach’s alpha values exceeding 0.7. Reliability testing evaluates the consistency of questionnaire items and the degree to which they relate to one another within a scale (Pallant 2010). According to Pallant (2010), a Cronbach’s alpha above 0.7 is considered acceptable for proceeding with further statistical procedures. The results in Table 1, therefore, indicate that the study satisfactorily met the minimum threshold for internal consistency.

The criteria used to test whether the Supply Chain Network had a mediation effect were Delta, Sobel, and Monte Carlo tests, and the three indirect effects were measured and tested. Table 7 outlines the effect indicated by Delta and Sobel was the same (indirect effect of −0.070), while for Monte Carlo, it was slightly lower (−0.069). Thus, a partial indirect but significant effect was observed from all three criteria, and the effect was negative, thus concluding that the Supply Chain Network has a partial significant effect between Digitalisation and Value Co-Creation.

The findings lend strong support to the research by Ivanov and Dolgui (2021), which highlighted that value co-creation plays a crucial role in boosting the efficiency of SMMEs. This process not only enhances operational effectiveness but also fosters essential synergies that are vital for business success. Additionally, this setup will further enhance information flow and expedite business-client interactions. The digitalisation variable did not have a predictive effect on the supply chain network. The relationship was not statistically significant (β = −0.0026468; p = 0.954). The results paint a different picture compared to the insights shared by Sigala (2018), who emphasises that digitalisation plays a pivotal role in enhancing supply chain networks through collaborative efforts among stakeholders. This collaboration not only enriches the exchange of real-time information but also streamlines communication across a variety of digital platforms. In diving deeper into this relationship, regression analysis was utilised to examine the hypothesis that value co-creation acts as a mediator between digitalisation and supply chain networks. The findings are compelling, revealing a statistically significant mediating effect of value co-creation on this relationship, showcased by an impressive F-statistic value of 31.83. This outcome holds strong statistical relevance, with a p-value of 0.030 at a 95% confidence level, indicating that value co-creation truly enhances the synergy between digitalisation and supply chain networks.

The research reveals that value co-creation significantly boosts the effectiveness of supply chain networks, essential for strong business performance. In contrast, digitalisation showed little predictive impact on these networks. Instead, its predictive effect emerged only when the mediation effect of value co-creation was considered. This study shines a spotlight on the critical role of value co-creation in energising the supply chain networks of SMMEs. Its findings bring a fresh perspective on how value co-creation can boost business efficiency through the power of digitalisation. What is fascinating is the way the mediated test deepens our understanding of when and how value co-creation can transform supply chain networks, ultimately driving better business outcomes. Merely having digital solutions in place is not enough; these systems must be tailored to cater to the diverse needs of various stakeholders. This is why ongoing engagement with stakeholders is essential for SMMEs. By integrating cutting-edge digital technologies, tourism SMMEs can significantly enhance value co-creation. This enhancement leads to greater transparency, improved operational efficiency, and stronger collaboration throughout the supply chain. Moreover, this digital transformation does more than just boost business competitiveness; it aligns tourism practices with global sustainability goals. By minimising resource waste, promoting responsible production and consumption, and fostering inclusive economic opportunities, SMMEs can carve out a path that truly benefits all stakeholders involved.