Dynamic, technological and marketing capabilities in MSMEs’ recovery from COVID-19 – the moderating role of organizational learning

Abstract

PurposeUsing dynamic capabilities (DCs) theory, the authors assess whether micro, small and medium-sized enterprises (MSMEs) can leverage DCs to improve operational capabilities (OCs) during the COVID-19 pandemic. The authors also identify whether organizational learning (OL) affects the relationship between DCs and OCs.Design/methodology/approachThe authors test these propositions on a sample of 419 MSMEs from Australia and New Zealand.FindingsDCs have no direct effect on OCs, technological or marketing capabilities (TCs or MCs). OL moderates the effect of DCs on both TCs and MCs.Research limitations/implicationsThe study assesses only MCs and TCs as OCs and does not explicitly measure pandemic impacts on organizations. However, the results illustrate the importance of OL during crises for recovery purposes.Practical implicationsManagers can use the findings to improve structure, processes and knowledge management emanating from MCs and TCs within organizations impacted by the COVID-19 pandemic.Originality/valueThe authors use a multi-dimensional measure of OL and show that during the pandemic, OL is a critical factor that allows organizations to transform the benefits conferred by DCs into MCs and TCs.