Small and Medium Enterprises in the insurance industry of South Africa are
increasingly seeking new ways to improve competitiveness. Recently, technologies like
expert systems are evolving to provide new knowledge to enable organizations to
deliver insurance services more effectively and efficiently. However, little information
is presented in the studies of business model innovation about the affordances of expert
systems in improving the competitiveness of the Small and Medium Enterprises in the
insurance industry. Based on the literature review of the Resource-based view model,
this chapter develops a model of the affordances of expert systems to guide Small and
Medium Enterprises in the insurance industry in their effort to improve
competitiveness. An explanatory mixed-method research approach was followed to
collect relevant data using a questionnaire and semi-structured interviews to understand
the affordances of expert systems in Small and Medium Enterprises in the insurance
industry. The results of the study indicate that competitiveness can be improved if the
Small and Medium Enterprises manage the expert system in five areas: (i) as a valuable
resource; (ii) as a rare resource; (iii) as an inimitable resource; (iv) as a unique
organizational resource; and (v) as a low-cost resource. Since the concept of business
model innovation is centered on resources that generate value, this study has
implications for theory and practice in the field of business model innovation,
particularly in the Small and Medium Enterprises operating in the insurance industry.
Keywords: Business model innovation, Competitiveness, Competencies, Expert system, Insurance, Knowledge development, Resource-based view, Small and eedium enterprises, South africa, Valuable resources.