The effects of dynamic capabilities on international SMEs' performance

Shahab Sharfaei, Jeen Wei Ong, Adedapo Oluwaseyi Ojo

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


Developing countries such as Iran face many challenges which can impact international small and medium-sized enterprises (SMEs) to a larger extent due to their limited resources and bargaining power. International SMEs are confronted by a number of challenges such as how to develop the dynamic capabilities needed to help them attain a high level of performance. By studying international SMEs, we investigate this matter by situating competitive advantage to mediate dynamic capabilities and firm performance. The partial least square technique was used to analyse the data which was collected through a self-administered survey. The survey was obtained from 166 SMEs in Iran. The findings suggest that dynamic capability does not have a significant impact on international SME performance. Moreover, competitive advantage does not mediate the relationship. This study offers recommendations to international SMEs on how to leverage comprehensive knowledge on dynamic capabilities and competitive advantage to enhance their performance in developing markets.

Original languageEnglish
Pages (from-to)247-267
Number of pages21
JournalInternational Journal of Globalisation and Small Business
Issue number3
Early online date17 Apr 2023
Publication statusE-pub ahead of print - 17 Apr 2023

Bibliographical note

Publisher Copyright:
© 2023 Inderscience Enterprises Ltd.


  • dynamic capabilities
  • competitive advantage
  • firm performance
  • SMEs in Iran
  • international SMEs
  • differentiation advantage
  • cost advantage
  • developing markets
  • SME performance
  • small and medium-sized enterprises
  • SMEs

ASJC Scopus subject areas

  • Business and International Management
  • Management Science and Operations Research
  • Information Systems and Management


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