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Unveiling How Dynamic Capabilities Drive Sustainable Performance in SMEs

In: Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)

Author

Listed:
  • P. S. Sari

    (Maharajas College, P.G. & Research Department of Commerce)

  • V. N. Suresh

    (Rajagiri College of Social Sciences (Autonomous), Department of Commerce & Professional Studies)

Abstract

The Small and Medium Enterprises (SMEs) industry in India is important in economic growth and offers a long-lasting livelihood to a good number of individuals. They are innovators, enhance regional growth, and give impetus to big industries by being suppliers and providers of services. The rise in challenges has exerted pressure on SMEs in India to remain competitive and perform well, since they have made considerable contributions. With the rising environmental and social requirements, businesses are obliged to put primary focus on their sustainable performance to balance the requirements in economic, environmental, and social dimensions. In order to attain this, enterprises should be able to create and utilize a wide range of competencies and resources. Reviews of the past literature show that dynamic capabilities (DCs) are an important component in enhancing sustainable performance. Although sustainability is an area that has been researched on much, similarly the research concerning SMEs is still not as much as that on large enterprises. In bridging this gap, the following study examines how different combinations of DC dimensions affect the sustainability of SME companies. This research examines the data from 240 SMEs using the fuzzy-set qualitative comparative analysis (fsQCA) method.

Suggested Citation

  • P. S. Sari & V. N. Suresh, 2025. "Unveiling How Dynamic Capabilities Drive Sustainable Performance in SMEs," Advances in Economics, Business and Management Research, in: Bejoy Joseph & Devi Sekhar R (ed.), Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025), pages 295-307, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-896-7_16
    DOI: 10.2991/978-94-6463-896-7_16
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