Dynamic Capabilities of Small and Medium-Sized Enterprises in Developing Markets: A Case Study Approach

Abstract

This paper investigates the dynamic capabilities of small and medium-sized enterprises (SMEs) operating in developing markets. Utilizing a case study approach, the research examines how SMEs in diverse industries and geographic regions leverage dynamic capabilities to adapt and thrive in dynamic and often turbulent business environments. The study explores key dynamic capabilities such as strategic flexibility, innovation agility, organizational learning, and market responsiveness, and their role in enabling SMEs to navigate challenges and capitalize on emerging opportunities in developing markets. Through in-depth analysis of multiple case studies, the research identifies patterns, strategies, and best practices employed by successful SMEs to build and deploy dynamic capabilities effectively. Additionally, the study investigates the influence of contextual factors such as industry characteristics, regulatory frameworks, and socio-economic conditions on the development and deployment of dynamic capabilities in SMEs within developing markets. By offering insights into the dynamic capabilities of SMEs in developing markets, this research contributes to advancing understanding of SMEs' competitive advantage and resilience in rapidly evolving business landscapes.