DYNAMIC CAPABILITY AND SUSTAINABILITY OF SMES IN SOUTH-EAST NIGERIA: THE NEXUS

Abstract

Dynamic capability (DC) is an ability that has helped big corporations navigate successfully through the ever-changing and competitive business environment. However, SMEs in the southeast of Nigeria seem not to have fully maximized the opportunities embedded in these practices, hence, the need to examine the dynamic capabilities SMEs in Southeast Nigeria need, to stay relevant and ahead of competitors. This study, therefore, looked at the concept of DC and those capabilities that could help SMEs stay afloat in the ever-changing business environment. The capabilities looked at include sensing, absorptive and adaptive capabilities. Others are innovative networking and integrative capabilities. The study further examined the micro-foundations of DC and the composition of SMEs in South East, Nigeria. To embellish the work, Dynamic Capability Theory (DCT) was used to anchor the work. Some studies were reviewed empirically. The study concluded that DC is one of the surest ways to ensure that SMEs compete favourably in the ever dynamic marketplace. Hence, it was recommended among other things that SMEs need not to be operating in isolation of what is happening in the global market, as what happens outside has an implication on what happens inside the organization, and as such, need to be alert through the application of DC principles.  Keywords: Dynamic Capability, Sustainability, SMEs, South-East, Absorptive, Adaptive and Innovative Capability.