Meaning ● The Adaptive Capacity Paradox, relevant to Small and Medium-sized Businesses (SMBs), describes a scenario where initial success in implementing automation or growth strategies diminishes the capacity for future adaptation. Essentially, early wins using standard solutions can lead to rigidity, making it harder for SMBs to adjust to new market conditions or technological disruptions. This happens because reliance on established automated processes and successful, yet static, growth models may hinder the development of flexible thinking and problem-solving skills within the organization. Therefore, SMBs should implement changes that allow a continued approach to change and promote innovation across the team as the businesses expand into new fields or strategies.
