Modelling the changing perspectives of capability building in small firms

Change is inevitable in all markets, and the capability to build other capabilities remains important for all firms, regardless of size, or sector. Although change matters, the reality for small firms depends upon the velocity of the markets in which they operate. Building on the literature on dynamic capabilities and capability building, we posit a conceptual framework with capabilities as a latent construct, defined by four dimensions; Predominant resources; patterns/routines; focus of learning tasks; and competitive outlook. These dimensions are a function of both market velocity and internal rate of change.