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Successful smart cities' implementation will require organisational leadership decision-making competences. The foundation of smart cities is digital technologies; many of these technologies are emerging technologies that require IT skills, which are scarce and will exacerbate the battle for talent between organisations. Filling the talent gap will necessitate global hiring, which has implications for organisational culture, cultural diversity and organisational leadership. Organisational cultural mix is an important contributor to leadership decision-making. However, decision-making is underpinned by trust. Blockchain is an emerging technology that has the potential to engender organisational trust in decision-making and, by extension, in the leadership with the ‘right’ organisational culture. Smart cities will be required to leverage emerging technologies to give business performance a competitive advantage and use emerging technologies’ applications to build a sustainable competitive advantage.

The COVID-19 pandemic has significantly affected service small- and medium-sized enterprises (SMEs), increasing the importance of understanding how these businesses can become more resilient and how service innovation can be an effective strategy to increase their adaptive capacity and survival. This study aims to examine the role of dynamic capabilities in service innovation as a factor explaining the resilience of SMEs in Puerto Rico and the Dominican Republic during the COVID-19 crisis and its impact on service innovation. Additionally, the authors assess whether service innovation has a significant impact on value cocreation in these businesses.

This study used a quantitative method by surveying 118 SME owners in Puerto Rico and the Dominican Republic. The data were analyzed using partial least-squares structural equation modeling.

The results reflect important theoretical contributions by analyzing resilience from an innovation perspective instead of a retrospective approach, which is an area that has not been analyzed in the literature. Additionally, theoretical contributions to marketing services in SMEs are discussed, which is an underresearched topic. The results advance by discussing the role of service innovation through the reconfiguration of resources and how this can be an effective strategy to increase value cocreation with customers during crises.

This study is original in that it analyzes resilience from the perspective of innovation, and not from a retrospective approach. It offers a vision in response to the need for studies that provide a clearer conceptualization of resilience in small businesses. This highlights the importance of considering regional differences and service innovation as effective strategies to enhance resilience and value cocreation with customers.