Alfred Masakale

Abstract

While resources are key for SMEs, there is increasing recognition that incorporating competencies, knowledge and flexibility, referred to as dynamic capabilities, is crucial for SMEs to grow and thrive in this dynamic business environment SMEs operate in today. The purpose of the article is to propose a model for improved SME performance, mediated by entrepreneurial competencies and dynamic capabilities, specifically discussing the theories that were instrumental in the proposed model. The model that this article seeks to develop would apply to entrepreneurs and SMEs whose aim is to grow and improve their performance via dynamic capabilities instead of resources. Based on an extensive review of the theoretical and empirical literature, the paper used past theoretical frameworks as well as a systematic literature review to posit a model. The article does a systematic review of the theories that were instrumental in developing the proposed model for improved SME performance through entrepreneurial competencies and dynamic capabilities. The article then argues the relevance of the theories in supporting the proposed model and contributes to the body of knowledge on the extended resource-based view on firm competitiveness by proposing a contribution that dynamic capabilities can make in improving SME performance.