The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms

Dynamic capabilities (DC) and market orientation (MO) have been described as affecting firm performance, particularly in the case of fast-changing markets. They have been analysed for a wide range of firm sizes, but research on DC in the context of sole traders and micro enterprises is scarce. To be...

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Main Author: Andrea Chiarelli
Format: Article
Language:English
Published: Asociación Española de Contabilidad y Administración de Empresas (AECA), Universidad Politécnica de Cartagena (UPCT) 2021-01-01
Series:Small Business International Review
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Online Access:https://sbir.upct.es/index.php/sbir/article/view/312
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author Andrea Chiarelli
author_facet Andrea Chiarelli
author_sort Andrea Chiarelli
collection DOAJ
description Dynamic capabilities (DC) and market orientation (MO) have been described as affecting firm performance, particularly in the case of fast-changing markets. They have been analysed for a wide range of firm sizes, but research on DC in the context of sole traders and micro enterprises is scarce. To begin filling this gap, this research focuses on the effects of DC and MO on firm performance in the case of sole traders, micro and small enterprises (MSEs), using higher education (HE) consulting as a case study. HE consulting was chosen as it is comprised of numerous sole traders and MSEs and it is subjected to significant and continual change. Using a survey completed by 60 MSEs based in the UK, Europe and North America, this research found that the sensing capability is a significant determinant of firm performance, alongside what this study defines as operational MO. Furthermore, operational MO was found to significantly moderate the relationship between the learning capability and firm performance. This work suggests that (i) research on DC should be extended to sole traders and MSEs; and (ii) the business literature is ripe for a growing body of applied work on DC going beyond their theoretical validation and looking to develop practical recommendations for firms in different industry sectors.
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spelling doaj-art-d8f337c87da94c7fb60a6b340b56643b2025-08-20T03:25:08ZengAsociación Española de Contabilidad y Administración de Empresas (AECA), Universidad Politécnica de Cartagena (UPCT)Small Business International Review2531-00462021-01-0151e31210.26784/sbir.v5i1.312312The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firmsAndrea Chiarelli0Research Consulting Limited. The Ingenuity Centre. University of Nottingham Innovation ParkDynamic capabilities (DC) and market orientation (MO) have been described as affecting firm performance, particularly in the case of fast-changing markets. They have been analysed for a wide range of firm sizes, but research on DC in the context of sole traders and micro enterprises is scarce. To begin filling this gap, this research focuses on the effects of DC and MO on firm performance in the case of sole traders, micro and small enterprises (MSEs), using higher education (HE) consulting as a case study. HE consulting was chosen as it is comprised of numerous sole traders and MSEs and it is subjected to significant and continual change. Using a survey completed by 60 MSEs based in the UK, Europe and North America, this research found that the sensing capability is a significant determinant of firm performance, alongside what this study defines as operational MO. Furthermore, operational MO was found to significantly moderate the relationship between the learning capability and firm performance. This work suggests that (i) research on DC should be extended to sole traders and MSEs; and (ii) the business literature is ripe for a growing body of applied work on DC going beyond their theoretical validation and looking to develop practical recommendations for firms in different industry sectors.https://sbir.upct.es/index.php/sbir/article/view/312dynamic capabilities (dc)firm performancemarket orientation (mo)consultinghigher education (he)
spellingShingle Andrea Chiarelli
The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
Small Business International Review
dynamic capabilities (dc)
firm performance
market orientation (mo)
consulting
higher education (he)
title The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
title_full The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
title_fullStr The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
title_full_unstemmed The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
title_short The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms
title_sort impact of dynamic capabilities and market orientation on firm performance a case study of higher education consulting firms
topic dynamic capabilities (dc)
firm performance
market orientation (mo)
consulting
higher education (he)
url https://sbir.upct.es/index.php/sbir/article/view/312
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AT andreachiarelli impactofdynamiccapabilitiesandmarketorientationonfirmperformanceacasestudyofhighereducationconsultingfirms