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The impact of dynamic capabilities on SME performance during COVID-19

Author

Listed:
  • Marcus Dejardin

    (University of Namur
    UCLouvain)

  • Mario L. Raposo

    (Universidade da Beira Interior)

  • João J. Ferreira

    (Universidade da Beira Interior)

  • Cristina I. Fernandes

    (Universidade da Beira Interior
    Loughborough University)

  • Pedro M. Veiga

    (Polytechnic Institute of Viseu
    NECE Research Unit in Business Sciences)

  • Luís Farinha

    (NECE Research Unit in Business Sciences
    Polytechnic Institute of Castelo Branco)

Abstract

Dynamic capabilities (DCs) are a growing field of research within the scope of theoretical structures based on resource and strategic management. Given the demonstrated impact of DCs on company performance, it is important to study the effects of DCs on small and medium sized enterprises (SMEs) within the context of the COVID-19 pandemic. Hence, this research evaluates the role of DCs during the pandemic and its impact on the performance levels of SMEs. Analysing the responses of 209 SMEs using a structural equations model, we report that DCs positively affect company performance both prior to and during the pandemic. However, we also verify that while prior to the pandemic companies placed greater emphasis on the search for new opportunities, following the onset of the pandemic the focus shifted to getting their products to the market. These results contribute to the literature on strategic management and the DC based approach during periods of turbulence and pandemics.

Suggested Citation

  • Marcus Dejardin & Mario L. Raposo & João J. Ferreira & Cristina I. Fernandes & Pedro M. Veiga & Luís Farinha, 2023. "The impact of dynamic capabilities on SME performance during COVID-19," Review of Managerial Science, Springer, vol. 17(5), pages 1703-1729, July.
    • Handle: RePEc:spr:rvmgts:v:17:y:2023:i:5:d:10.1007_s11846-022-00569-x
    DOI: 10.1007/s11846-022-00569-x
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    More about this item

    Keywords

    Dynamic capabilities; SME; Performance; COVID-19 pandemic;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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