Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 18 January 2022
Issue publication date: 18 October 2022
Abstract
Purpose
A global pandemic, broken supply chains, workforce constraints, technological advancements in artificial intelligence, etc. illustrate the continual threats that SMEs face. Extending the dynamic capability concepts of sensing, seizing and transforming, this research investigates practices by which SMEs successfully adapt over time.
Design/methodology/approach
A comparative case study method was employed using a purposive sample of SMEs, consisting of three American firms and one Canadian firm.
Findings
Three sets of organizational practices, termed adaptive practices, that underlie dynamic capabilities for successful adaptation were identified: (1) continuous learning and process improvement, (2) leveraging reciprocal relationships and (3) communicating effectively.
Research limitations/implications
The selected cases are from two countries in North America. Using a qualitative, inductive process, the authors are able to identify patterns of actions within various organizations; however, they are not able to establish causality.
Practical implications
This study provides practical guidance for leaders to take action to improve their SME's dynamic capabilities for adaptation through creating coherent bundles of specified adaptive practices.
Social implications
Better understanding of how SMEs successfully adapt to high uncertainty and business viability threats can result in multidimensional (e.g. financial, emotional) and multi-level (individual, family, community), positive outcomes for societal stakeholders.
Originality/value
The findings of this study build on the literature of dynamic capabilities and organizational practices and provide a practical foundation for effective adaptation, labeled as adaptive practices.
Keywords
Citation
Quansah, E., Hartz, D.E. and Salipante, P. (2022), "Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation", Journal of Small Business and Enterprise Development, Vol. 29 No. 7, pp. 1130-1148. https://doi.org/10.1108/JSBED-07-2021-0269
Publisher
:Emerald Publishing Limited
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