Background: SMEs are the backbone of the economy, nevertheless, about 50% of them will fail within their first five years of operations. Since the internet is taking more place in daily activities due to its consistent usage growth across the world, it is relevant for SMEs to have the ability to differentiate themselves from their competitors and generate advantages in the virtual world. This differentiation could help them to not only grow but survive in the future. Hence, performing adequate online social activities among social media outlets could help SMEs to generate these advantages. However, and as they are commonly small in size, SMEs’ advantage-generation abilities are commonly connected to the Dynamic Capabilities level of their owners, as they are traditionally the ones in charge of many aspect of their business.

Problem: SMEs do not seem to completely profit from the tools available across different SMOs, in spite of having the technological infrastructure, economic means, and basic interest and approach towards online social activities.

Purpose: Understand how SME owners’ Digital and Information literacies affect the development of the companies’ Dynamic Capabilities generation in the quest of generating a competitive advantage for their business.

Method: A single case study and a focus group exercise were conducted, following an interpretivist paradigm approach for a qualitative method research.

Results: SME owners in Jönköping do not have mechanisms in place to gather, assess, add value, and transform data into valuable information towards the creation of competitive advantages.