Explaining How Dynamic Capabilities Play a Role in Successful Knowledge-based SMEs (Active in ICT)

The turbulent environments and the presence of factors such as sanctions, government laws, access to state-owned corporate confidential information, traditional ways of business, instability in economic conditions, especially exchange rate fluctuations that are important for ICT products, enhance uncertainty and challenges of such an environment. In the meantime, there are successful knowledge-based companies that have continued to dominate Iranian market, and although they have been struggling with many problems, they have been able to create and maintain a good market share and continue their activities. We believe that part of the success and growth of these businesses stems from their timely action against challenges and capabilities that cannot be attributed to routine capabilities just like any other business. In such an environment, the competitive advantage is not sustainable, and small and medium-sized businesses (SMEs) need tools to continue to operate and achieve market share. In order to explain the role of dynamic capabilities on the performance of SMEs, a model was developed using the literature and then, by interviewing the managers and staff of these companies, the model accuracy was examined.