Dynamic Capabilities in Creating Competitive Advantages for SMEs during the Pandemic
Nizar Alam Hamdani, Galih Abdul Fatah Maulani, Sukma Nugraha, Asri Solihat, Teten Mohamad Sapril Mubarok

Universitas Garut

Abstract

The COVID-19 outbreak, which has spread almost parts of the world, is starting to impact the crucial food and beverage sector in Indonesia. The affected food and beverage business is coffee shops, almost all coffee shops complain of losses and turnover has dropped dramatically since this contagious pandemic. This study aims how dynamic capabilities create competitive advantage in Small and Medium Coffee Enterprises. This study aims to determine the implementation of dynamic capabilities as an alternative strategy in creating the competitiveness of small and medium coffee businesses in the Covid-19 Pandemic era. The study was conducted using a quantitative method with a survey approach to coffee small businesses or coffee shops spread across 3 districts in west java, Indonesia. Data processing using SMART PLS using a sample of 45 coffee shops using simple random sampling. The results showed that dynamic capabilities influence creating a competitive advantage. The critical role of capabilities is implanted in exercising a competitive advantage, through integrating, and reconfiguring internal and external organizational skills, resources, and functional competencies used to adapt to changing environmental requirements.

Keywords: Dynamic Capabilities, Competitive Advantages, SMEs

Topic: Strategic Management, and Entrepreneurship