Dynamic capabilities and SME: the example of Chinese tourism companies in Spain

Abstract

The study investigates the strategies of Chinese SME in the tourism sector in Spain to detect if these entrepreneurs employed specific strategies based on the development of dynamic capabilities that could be adopted from other small companies as well. Additionally, the deployment of dynamic capabilities is researched. Design / Methodology / Approach: The study is exploratory and relies on case studies of three Chinese owned small companies that have been operating from Spain. Cases were chosen to represent different length of investments in Spain, different markets served as well as different ownership structures. Findings: Environmental perceptions play an important role in the development of dynamic capabilities in SME of the tourism sector. New product development and knowledge accumulation are the main capabilities employed.