Strategic agility, dynamic relational capability and trust among SMEs in transitional economies

Rapid growth and urbanizing populations are transforming Africa, despite environmental turbulence, uncertainty and relational complexity. Research highlights how small firms rely upon trust-based buyer-supplier relationships in such contexts. Our study adopts a micro-foundational perspective and bui...

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Bibliographic Details
Published in:Journal of world business : JWB 2021-04, Vol.56 (3), p.101175, Article 101175
Main Authors: Nyamrunda, Frank Charles, Freeman, Susan
Format: Article
Language:English
Subjects:
Analysis
Business schools
Dynamic relational capability
Economic aspects
Knowledge
Small and medium sized companies
Small firms
Strategic agility
Transitional economies
Trust
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Summary:Rapid growth and urbanizing populations are transforming Africa, despite environmental turbulence, uncertainty and relational complexity. Research highlights how small firms rely upon trust-based buyer-supplier relationships in such contexts. Our study adopts a micro-foundational perspective and builds on dynamic capabilities literature and psychological trust theory. Our conceptual model shows how relational dimensions (i.e. communication, social bonds, and knowledge), influenced by meta-capabilities (strategic sensitivity, resource fluidity and leadership unity) embedded in micro-foundational activities build trust in small business cross-border buyer-seller relationships to support dynamic relational capability and enhance strategic agility in transitional economies.
ISSN:1090-9516
DOI:10.1016/j.jwb.2020.101175