Unveiling the dynamic capabilities' influence on sustainable performance in MSMEs: a systematic literature review utilizing ADO-TCM analysis

Abstract

Purpose: This research endeavors to conduct a thorough and holistic analysis of the foundational elements that empower the cultivation of dynamic capabilities in micro, small and medium-sized enterprises (MSMEs). The purpose of this study is to determine whether these capabilities have a noticeable impact on the sustainable performance of these enterprises. The study aims to support future research efforts in understanding this phenomenon by filling this knowledge gap and presenting a conceptual framework, thereby enhancing the scholarly discourse in this field. Design/methodology/approach: The study consists of a systematic review of 126 articles meticulously chosen through a series of screening stages employing the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. This examination is conducted within the organized framework of antecedents, decisions and outcomes-theory, context and methods (ADO-TCM), ensuring a structured and comprehensive analysis. Findings: The study uncovers significant insights, identifying four key antecedents: resource base, organizational learning, managerial expertise and external environment management. These factors are instrumental in fostering dynamic capabilities within the enterprise, leading to sustainable entrepreneurial success and a competitive advantage over rivals. Research limitations/implications: By comprehending the mechanisms by which dynamic capabilities are established within the enterprise, this study provides a valuable resource for entrepreneurs, professionals and managers, offering them practical insights to leverage. Originality/value: This systematic literature review is the initial attempt to explain how dynamic capabilities can be used to enhance and accomplish sustainable performance in the context of MSMEs. © 2024, Emerald Publishing Limited.