Dynamic managerial capabilities and organizational change capacity as precursors of organizational dynamic capabilities in SMEs

Purpose While organizational dynamic capabilities (DCs) are understood as crucial to small- and medium-sized enterprises (SMEs)’ success, the configurations of individual-level capabilities and meta-capabilities, in the form of dynamic managerial capabilities (DMCs) and organizational change capacity (OCC), in which that outcome can be observed are not clear. We answer this research question while considering the firm’s internationalization as a moderator. Design/methodology/approach We conduct a two-stage fsQCA analysis, with data obtained through a questionnaire. Findings Our results indicate two equifinal main paths. Managerial cognition of DMCs and the change processes capacity of OCC are incredibly relevant conditions for determining the outcome of DCs in SMEs, with a peripheral role of the remaining OCC dimensions. Internationalization moderates this relationship. In internationalized firms, as the second path, organizational learning, the capability to change contexts and human capital gain prominence. Research limitations/implications We offer important insights into the contingencies of the development of DCs in SMEs, highlighting the importance of configurational thinking. More than one or other related dimension, the conjunction of DMCs’ and OCC’s dimensions determines the presence of DCs. Furthermore, we highlight the importance of considering the internationalization of the firm. Originality/value No study has approached DMCs and OCC as capability antecedents of DCs in SMEs, disentangling interrelated antecedents and thus determining the sufficient conditions for their formation. The consideration of the moderation of internationalization further expands the contextual relevancy of these antecedents. Methodologically, we are one of the first studies to utilize newly improved procedures to study moderation in a configurational analysis.