The effects of dynamic capabilities on international SMEs' performance

Citation

Sharfaei, Shahab and Ong, Jeen Wei and Ojo, Adedapo Oluwaseyi (2023) The effects of dynamic capabilities on international SMEs' performance. International Journal of Globalisation and Small Business, 13 (3). p. 247. ISSN 1479-3059

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Abstract

Developing countries such as Iran face many challenges which can impact international small and medium-sized enterprises (SMEs) to a larger extent due to their limited resources and bargaining power. International SMEs are confronted by a number of challenges such as how to develop the dynamic capabilities needed to help them attain a high level of performance. By studying international SMEs, we investigate this matter by situating competitive advantage to mediate dynamic capabilities and firm performance. The partial least square technique was used to analyse the data which was collected through a self-administered survey. The survey was obtained from 166 SMEs in Iran. The findings suggest that dynamic capability does not have a significant impact on international SME performance. Moreover, competitive advantage does not mediate the relationship. This study offers recommendations to international SMEs on how to leverage comprehensive knowledge on dynamic capabilities and competitive advantage to enhance their performance in developing markets.

Item Type: Article
Uncontrolled Keywords: dynamic capabilities, competitive advantage, firm performance, SMEs in Iran, international SMEs, differentiation advantage, cost advantage, developing markets, SME performance, small and medium-sized enterprises, SMEs
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD2321-4730.9 Industry > HD2340.8-2346.5 Small and medium-sized businesses, artisans, handicrafts, trades
H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business
Divisions: Faculty of Management (FOM)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 03 Jul 2023 04:18
Last Modified: 03 Jul 2023 04:18
URII: http://shdl.mmu.edu.my/id/eprint/11497

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