Abstract
This research investigates the relationship between adaptability and small-and-medium enterprises (SME) performance, and the mediating role of action orientation. We highlight the importance of risk-taking on the relationship between adaptability and action orientation. Our study integrates research on dynamic capabilities and SME culture and how they translate into financial performance. We develop a moderated-mediation model of adaptability, linking perceptions of action to organizational performance. We argue these relationships are moderated by risk-taking. Our findings suggest: (a) there is a positive relationship between organizational adaptability and action; (b) action is positively related to organizational performance; (c) the indirect effect of organizational adaptability on organizational performance (via action) is stronger when employees work in a more risk-oriented environment.