COVID-19 wreaked havoc on public health and the global economy. Small and medium-sized enterprises (SMEs) were hit especially hard. In this research note, we test the ability of dynamic capabilities (DCs) to predict SME performance during the pandemic. Based on our analysis of data from a survey conducted in the United States, we find that DCs meaningfully predicted both operational levels and revenue. Furthermore, while the empirical literature suggests that SME size is positively related to DC efficacy, we found that this effect was reversed during COVID-19, as the positive link between DCs and performance was stronger for smaller SMEs.

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Purpose The purpose of this paper is to understand when, how, and why service employees adapt the service encounter to meet the values and expectations of culturally disparate customers. Design/methodology/approach The authors tested the hypothesized framework utilizing a scenario-based experimental study. In total, a sample of 296 prospective restaurant service employees were asked to evaluate their willingness to adapt their behavior when faced with cultural differences as well as out group status. Furthermore, respondents were asked to assess their level of metacognitive cultural intelligence. Findings The authors found that both perceived cultural differences and out group status positively affect the service employee’s willingness to adapt their behavior. Further, cultural intelligence (CQ) positively moderates one of those two direct relationships. Originality/value The authors extend the literature on the service-adjustment process, as well as the managerial implications of service adjustment. The study is among the first to introduce the role of the service employees’ CQ in adaptation to an intercultural service encounter.

Despite an increase in research in psychology on the mental state of flow, little is known within the area of organisational studies about its “dark side.” Although prior organisational studies literature suggests that flow leads to generally positive work outcomes, we use conservation of resources theory to argue that expatriates in the state of flow can accumulate resources that lead to work adjustment but at the same time may experience unintended negative work–family conflict consequences. Specifically, we argue that being in the state of flow can improve expatriates' work adjustment because they can concentrate on the task at hand in an unencumbered way. Yet the exclusive concentration on work tasks and the distortion of time while in the state of flow may reduce psychological and time resources available to the family, resulting in work–family conflict. We explore whether flow theory needs to be altered to discover potentially negative work–family conflict outcomes inherent in the complex work regimes associated with global careers. Structural equation modelling analyses based on a sample of 230 expatriates in the United States and 169 expatriates in Brazil revealed that flow increased both work–family conflict and work adjustment.

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