Meaning ● Dynamic Organizational Capabilities, in the context of Small and Medium-sized Businesses, refers to the firm’s ability to purposefully create, extend, or modify its resource base, improving its competitive positioning. In practice, it denotes the capacity of SMBs to adapt to rapid market changes, integrate new technologies such as AI in automation, and reconfigure processes for efficient implementation of growth strategies, all leading to sustained performance. ● In the digital era, SMBs frequently leverage dynamic capabilities to pivot business models, optimize resource allocation, and enhance operational agility, which are key components of survival and scaling. Given the resource constraints common in SMB environments, effectively utilizing such capabilities can provide a strategic advantage through adaptive innovation and proactive problem-solving. The implementation of these capabilities requires a flexible organizational structure, continuous learning, and a culture promoting experimentation.
