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.

Citation

Mishra, R. and Kiran, K.B. (2024), "Unveiling the dynamic capabilities' influence on sustainable performance in MSMEs: a systematic literature review utilizing ADO-TCM analysis", Asia-Pacific Journal of Business Administration, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJBA-05-2024-0295