Economic crisis effects on SME dynamic capabilities

Abstract

Based on dynamic capabilities theoretical framework, this research sought to understand the implications of the recent economic crisis on the capability of developing new products by Portuguese SMEs. Specifically, we assessed how this capability was affected by variables such as entrepreneurship, innovation capacity, the knowledge accumulation, and partnerships. The hypotheses were tested using two samples, one before the crisis, with 180 and another with 105 respondents, applied during the crisis (2012). Results reveal that during the crisis SMEs were more objective and effective in the use of their resources and capabilities. In particular, was found that during the crisis the entrepreneurship, innovation capacity, accumulation of knowledge and partnerships, have an impact on the capability of developing new products. Before the crisis, only entrepreneurship and knowledge accumulation have affected this capability.