Meaning ● Dynamic Capabilities Theory, within the SMB landscape, addresses the firm’s ability to adapt and reconfigure internal and external competencies to address rapid environmental shifts, focusing on SMB growth and survival. Consider its application to automation; a firm needs to not only implement robotic process automation (RPA) but to continually refine the scope and logic as market conditions alter. Moreover, it stresses the role of strategic sensing of new technologies, which requires ongoing scanning and evaluation, followed by seizing opportunities revealed by tech, with flexible implementations of innovative solutions. Successful implementation also relies heavily on transformation, entailing the realignment of existing resources and systems. ● To navigate volatile markets, the theory supports an organization’s goal to sustain a competitive advantage through agile adaptation. To grow its marketshare in new tech segments, the SMB must reconfigure its processes based on emerging trends. For small firms to leverage this effectively, the organization will have to focus on scalable automation and integration. Furthermore, understanding and developing capabilities of orchestration enables SMBs to optimize their approach. To exemplify automation, a local SMB utilizing AI may pivot quickly to process orders efficiently, adapting in reaction to unexpected demands. ● Crucially, it is the capability of SMBs to dynamically adapt, which defines long-term survival and growth, setting the groundwork for long-term success.
