Building dynamic capabilities in SMEs amidst the COVID‐19 crisis: an exploratory investigation of the UK’s creative industries ...

Small- and medium-sized enterprises (SMEs) possess operational capabilities to manage their daily operations, but they also strive to cultivate dynamic capabilities to navigate swiftly changing business environments. The building of dynamic capabilities beyond operational ones empowers SMEs to establish sustainable competitive advantages. SMEs undertake this endeavor with the aim of formulating strategic responses to the rapidly evolving demands emanating from the business environment. Over the past two years, these shifting demands have had a profound impact on SMEs due to the COVID-19 crisis. The pandemic led to the suspension of the United Kingdom's economy in 2020 and 2021, compelling SMEs to go into lockdown. Consequently, SME founders and managers found themselves compelled to swiftly explore alternative strategies and adapt to new operational paradigms in a matter of days. This circumstance has presented an unusual opportunity to deeply address the theory and practices of dynamic capabilities within ...