STRATEGIC BEHAVIOR AND DYNAMIC CAPABILITIES: STUDIES IN MICRO AND SMALL TECHNOLOGY-BASED FIRMS

Abstract

Purpose: This work aims to contribute to the literature on strategic management in micro and small firms by identifying the main strategic behavior traits in micro and small technology-based firms. Methodology: The research method consisted of two phases: the first phase, quantitative, involved a survey of 104 micro and small technology-based firms, whose results were analyzed using the cluster analysis technique. The second qualitative phase involved five case studies, whose information was obtained through five semi-structured interviews and analyzed using the content analysis technique. Results: The results indicated which micro and small technology-based firms operate in sectors with high levels of dynamism and uncertainty, and their strategic behavior is based on the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and investments in R&D and development of dynamic capabilities for innovation, sensing changes in the external environment, seizing and reconfiguring resources, through strategic partnerships with external agents, especially customers, which can help these companies to adapt to market demands and obtain competitive advantages. Conclusions: The strategic behavior in micro and small technology-based firms is influenced by the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and R&D investments, and development of dynamic capabilities for innovation.