Dynamic capabilities and SME performance: The moderating effect of market orientation

We investigate how the four dimensions of the dynamic capabilities (DC) construct (sensing, learning, integrating, and coordinating) individually affect firm performance and the moderating role of market orientation (MO) in the process. Our findings, based on a sample of 509 Spanish small and medium-sized enterprises (SMEs), suggest that not all DC dimensions are equally important for SME performance. We further found MO to significantly moderate the relationships between both the sensing capability and the learning capability and firm performance. The implications for research and practice are discussed.

Automated summary

The study examines how the four dimensions of dynamic capabilities individually influence firm performance and the moderating role of market orientation in this process. The findings suggest that not all dimensions of dynamic capabilities are equally important for SME performance, with market orientation significantly moderating the relationships between sensing capability, learning capability, and firm performance.