“…This is perhaps unsurprising given that dynamic capabilities research has historically focussed mainly on larger enterprises (Koryak et al, 2015;McKelvie and Davidsson, 2009) with only a small body of literature focussing on dynamic capabilities in SMEs (Battisti and Deakins, 2015;Rice, Liao, Galvin and Martin, 2015;Woldesenbet, Ram and Jones, 2011) and micro-enterprises (Arend, 2014;Kevill, 2014;Vickers and Lyon, 2014). Micro-enterprise, however, offers a unique context (Devins, Gold, Johnson and Holden, 2005;Kelliher and Reinl, 2009) deserving of more attention (Jaouen and Lasch, 2015;Kelliher and Reinl, 2009). It is ideally suited to investigating whether owner-managerial self-efficacy may play a micro-foundational role in dynamic capabilities as owner-managers often have a strong influence in micro-enterprises (Kelliher and Reinl, 2009), and so, their perceived self-efficacy may well have a more pronounced effect.…”