Performance stability among small and medium-sized enterprises during COVID-19: A test of the efficacy of dynamic capabilities

Abstract

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.

Does independent goal interdependence impair dynamic capability? The mediating role of supplier integration and the moderating role of internal integration

“…Dynamic capability is essential for companies in turbulent technology and market environments (Bianchi et al, 2021;Clampit et al, 2021;Teece, 2007). Our work suggests that top managers must address the negative effects of independent goal interdependence with suppliers on dynamic capability.…”

“…The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1355-5855.htm Clampit et al, 2021), has been viewed as an important means of management in highly turbulent environments (Irfan et al, 2020). Researchers have related dynamic capability to many business outcomes, including the enhancement of firm performance, the promotion of operational changes, improved sustainability, competitive dynamics and the development of service innovations (Baden-Fuller and Teece, 2020;Jantunen et al, 2018;Janssen et al, 2016;Pezeshkan et al, 2016;Teece, 2007).…”

“…Dynamic capability, defined as the ability to sense the external environment, to seize business opportunities and to restructure firm assets (Teece, 2007; Jafari-Sadeghi et al. , 2021; Clampit et al. , 2021), has been viewed as an important means of management in highly turbulent environments (Irfan et al.…”

The Effect of Risk, R&D Intensity, Liquidity, and Inventory on Firm Performance during COVID-19: Evidence from US Manufacturing Industry

“…The primary gap is a lack of quantitative studies of firm performance during COVID-19. We are aware of one such study (Clampit et al 2021), which notes that the more uncertain nature of pandemics versus other crises may mean that strategies related to dynamism and agility may outperform those related to scale or efficiency. Their test of the effect of dynamic capabilities on the operational and revenue performance of small businesses supported their hypotheses.…”

Crisis and arbitrage opportunities: The role of causation, effectuation and entrepreneurial learning

“…First, the study confirms that a pervasive crisis, acting as an exogenous shock, leads to the emergence of an arbitrage opportunity. At the same time, because the crisis also induces high levels of uncertainty (Clampit et al, 2021; Klyver and Nielsen, 2021), careful engagement of both their decision logics and learning become paramount for entrepreneurs. Specifically, we find that as the crisis spreads, entrepreneurs make a notable shift in their decision logics, moving from a predominantly causation-based decision logic during the ideation phase, to a predominantly effectuation-based logic during the action phase.…”