Dynamic capabilities, technology adoption and performance among Uruguayan industrial SMEs

Abstract

Dynamic business capabilities and technology adoption are critical to the competitiveness of small and medium-sized enterprises. The research aimed to determine the level of dynamic business capabilities for business model innovation: sensing customer needs, identifying technology options, conceptualization and experimentation, collaboration, planning for digital transformation; the level of adoption of advanced manufacturing technologies; and the perception of business performance of small and medium-sized industrial firms in Uruguay. A survey was conducted among 130 decision-makers from an intentional sample of medium-sized industrial firms. It was found that conceptualization and experimentation have an essential place in the adoption of technologies and this in business performance; that suppliers play a leading role in technology adoption, more than all other actors of the system; and that exporting firms are more dynamic in taking advantage of dynamic capabilities and adopting technologies. The paper concludes with orientations for industrial and public policies and improving SME competitiveness.