Meaning ● Organizational Adaptive Capacity, within the context of Small and Medium-sized Businesses (SMBs), represents the capability of an organization to proactively sense, assess, and respond effectively to unforeseen market shifts, technological advancements, or operational disruptions. This capacity is crucial for SMB growth, as it determines how adeptly a company can integrate automation solutions and implement new business strategies to maintain competitiveness. Successfully navigating digital transformation, and volatile market conditions rests heavily on a well-developed adaptive capacity. Businesses that show greater adaptive capacity are more likely to see increases in profitability and stability.