Dynamic capabilities and organizational resilience in turbulent environments

Abstract

This chapter discusses the role and importance of dynamic capabilities for SMEs, considering how these capabilities can assist adaptation and resilience to maintain competitiveness in turbulent environments. The Dynamic Capabilities approach aims to understand the sustainability of competitive advantage in rapidly changing contexts, considering the resources and the company's capabilities in adapting to its environment. Turbulence, instability and difficulties coming from the external environment can impact on the growth potential and survival chance of Small and Medium Enterprises (SMEs). In this context, the term Organizational Resilience incorporates strategic actions to maintain and adapt the organization in its environment. The chapter proposes an integration between the concepts and establish the initial steps to develop Dynamic Capabilities and Organizational Resilience, especially for SMEs.