Dynamic Capabilities and Their Effect on Organizational Resilience in Small and Medium-Sized Commercial Enterprises

Abstract

Abstract The organizational environment often experiences turbulence, resulting in increased complexity in maintaining a foothold in the market. Consequently, dynamic capabilities play a crucial role in fostering organizational resilience. Given the substantial impact that organizations faced during the COVID-19 pandemic, this study aims to assess the influence of dynamic capabilities on the organizational resilience of small and medium-sized enterprises (SMEs), with the objective of identifying the factors that contribute to organizational survival. Using Covariance-Based Structural Equation Modeling (CB-SEM), this research examined 216 SMEs operating within the commercial sector of Mexico. The findings revealed a positive and significant impact of most dynamic capabilities, detection, absorption, coordination, and innovation on organizational resilience. Notably, the integration capability exhibited the weakest influence on the dependent variable. In contrast, the innovation capability emerged as the most influential factor for SMEs in bolstering organizational resilience.