The implementation of dynamic capabilities for SMEs in creating innovation

Abstract

Purpose The purpose of this paper is to analyse the adaptation process of small and medium-sized enterprises (SMEs) to volatile environment supported with learning, knowledge and innovation. Design/methodology/approach This study used an inductive approach to analyse qualitative data obtained from an SME operating in the international market. Various data collection methods, including interview, focus group discussion and observation, were used to allow the researchers to undertake triangulation. Findings This study demonstrates that managers should be eager to adjust their innovation to a changing environment and continually update pre-determined plans. Learning is an ongoing process required for innovation, requiring up-to-date support from knowledge produced via learning. For this reason, learning is required in all dynamic capability processes. Originality/value This study offers insight to relatively empirical evidence on how firms respond and adjust to volatile environments using an integrative perspective covering learning, knowledge and innovation. In addition, this offers insight regarding how knowledge can be developed based on learning from the environment and converted into innovation through dynamic capabilities.

Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation

“…Results show the importance of dynamic capabilities on firm performance by passing on innovation capabilities and competitive advantages as partial mediators. Thus, high dynamic capability in terms of the ability to sense, seize, and transform new ideas will lead to prompt and effective changes in company strategies [1]. By creating competitive advantages over competitors in terms of cost leadership and differentiation or applying innovations in design and manufacturing, firm performance can be optimised under changing environments.…”

Indirect effect of extra-industry network and innovativeness on performance through proactiveness

“…In developed countries, such as the USA and the UK, SMEs account for approximately two-third of the fulltime and permanent industrial employment (Goswami et al , 2019). In developing countries, SMEs comprise economically dynamic enterprises, the achievements of which are considerably more significant than those of SMEs in developed countries (Hermawati, 2020; Rashidirad and Salimian, 2020). On the other hand, SMEs have been considered as an essential sector to achieve macroeconomic objectives such as poverty reduction and employment creation with ample potential through enhancing entrepreneurial skills (Mujahid and Begam, 2019).…”

Model Inkubasi Bisnis Kolaborasi Dan Dampaknya Terhadap Inovasi Industri Kreatif Di Jawa Timur Indonesia

“…However, this is contrary to the results of research by Onyango et al (2021) which show that there is still a lack of mentoring programs in business incubation towards business orientation, these studies show that previous research findings vary, although they focus on the same topic, namely creative business. (Filho, Leon Olave, & de Carvalho Barreto, 2021) (Anik & Sulistyo, 2021) (Setianingsih & Rizal, 2017) (Widjaja & Sugiarto, 2022) (AlQershi, 2022) (Hermawati, 2020a) (Wang & Ahmed, 2009) (Hermawati, 2020b) (Soetanto & van Geenhuizen, 2019) (Hughes, Chang, Hodgkinson, Hughes, & Chang, 2021) (Liu, 2020) (Nguyen, Huynh, Lam, Le, & Nguyen, 2021) (Massaro, Rubens, Bardy, & Bagnoli, 2017) (Sari, 2022) Therefore, our study of the business incubation process is associated with business orientation strategies and creative business innovation capabilities in East Java, Indonesia.…”