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Abstract

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Baltic Journal of Management, vol. 3 no. 2
Type: Research Article
ISSN: 1746-5265

Article
Publication date: 21 October 2013

Šarūnas Nedzinskas, Asta Pundzienė, Solveiga Buožiūtė-Rafanavičienė and Margarita Pilkienė

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic…

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Abstract

Purpose

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment.

Design/methodology/approach

A quantitative survey was carried out in Lithuania's SME sector. In order to achieve the aim of this empirical research, a sample of 360 SMEs was analyzed.

Findings

This exploratory study offers a conceptual model for dynamic capabilities and organizational inertia in a volatile environment. The findings suggest that dynamic capabilities have positive effects on non-financial relative organizational performance, though no impact on financial relative organizational performance has been revealed. The authors argue that organizational inertia moderates dynamic capabilities and relative organizational performance.

Research limitations/implications

One suggestion for further research is to investigate the interaction between dynamic capabilities and organizational inertia in a stable environment and to perform longitudinal research embracing a broader sample of organizations.

Originality/value

The study addresses a gap in strategic management literature and practice, examining the interaction between SME dynamic capabilities and organizational inertia in a volatile environment during an economic crisis.

Details

Baltic Journal of Management, vol. 8 no. 4
Type: Research Article
ISSN: 1746-5265

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