The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms

Andrea Chiarelli ()
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Andrea Chiarelli: Research Consulting Limited. The Ingenuity Centre. University of Nottingham Innovation Park, https://orcid.org/0000-0001-7336-8330

Small Business International Review, 2021, vol. 5, issue 1, e312

Abstract: Dynamic capabilities (DC) and market orientation (MO) have been described as affecting firm performance, particularly in the case of fast-changing markets. They have been analysed for a wide range of firm sizes, but research on DC in the context of sole traders and micro enterprises is scarce. To begin filling this gap, this research focuses on the effects of DC and MO on firm performance in the case of sole traders, micro and small enterprises (MSEs), using higher education (HE) consulting as a case study. HE consulting was chosen as it is comprised of numerous sole traders and MSEs and it is subjected to significant and continual change. Using a survey completed by 60 MSEs based in the UK, Europe and North America, this research found that the sensing capability is a significant determinant of firm performance, alongside what this study defines as operational MO. Furthermore, operational MO was found to significantly moderate the relationship between the learning capability and firm performance. This work suggests that (i) research on DC should be extended to sole traders and MSEs; and (ii) the business literature is ripe for a growing body of applied work on DC going beyond their theoretical validation and looking to develop practical recommendations for firms in different industry sectors.

Keywords: dynamic capabilities (DC); firm performance; market orientation (MO); consulting; higher education (HE) (search for similar items in EconPapers)
JEL-codes: D22 I23 L20 M10 M31 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aaz:sbir01:sbir01:v:5:y:2021:i:1:p:e312

DOI: 10.26784/sbir.v5i1.312

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