Microfoundations of Dynamic Capabilities in Small and Medium-Sized Enterprises: Results of a Systematic Literature Review

Alexander V. Filimonov

National Research University Higher School of Economics, Moscow, Russia

Abstract

The development of small and medium-sized enterprises (SMEs) is one of the highest priority tasks for the Russian economy. The potential of Russian SMEs is utilized at less than half the level compared to leading global economies. In a rapidly changing external environment, the development of dynamic capabilities becomes critically important for creating competitive advantages. Currently, the topic of dynamic capabilities formation in SMEs is understudied in Russian literature: empirical research on SME dynamic capabilities remains scarce, and their fundamental components, microfoundations, require conceptualization and systematization. The objective of this study is to identify and systematize the microfoundations of dynamic capabilities in small and medium-sized companies. The study tests the hypothesis that there are significant differences in the structure of dynamic capabilities' microfoundations between SMEs and large companies. The research methodology comprises systematic literature review and qualitative content analysis. An initial search in the Science Direct database identified 175 relevant publications. After applying inclusion/exclusion criteria, a final sample of 37 publications was formed for in-depth analysis. As a result of the qualitative content analysis of the final sample, which contained 645 mentions of processes and skills, 13 microfoundations were identified, grouped into the sensing, seizing, and transforming clusters of dynamic capabilities. Based on a comparative analysis with the microfoundations of large companies, significant structural differences in the microfoundations of SMEs were identified. The theoretical novelty of the study lies in the operationalization of the dynamic capabilities concept for the SME sector, the specification of its constructs (microfoundations and first-order concepts), and the identification of specific differences compared to the model for large businesses. The managerial implications of the study consist in providing SME managers with a structured framework for developing a strategy to enhance their companies' dynamic capabilities, as well as in the potential use of the obtained results to create new tools within state and regional SME support programs.

Keywords

microfoundations; dynamic capabilities; SMEs; sustainable competitive advantage

JEL classification

References

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Acknowledgements

The authors would like to express sincere gratitude to colleagues at the Department of Operations Management and Logistics, Graduate School of Business, National Research University Higher School of Economics for their assistance in preparing this article, specifically: Sergey P. Kushch, Doctor of Sciences in Economics, Professor; Ivan V. Soloviev, PhD, Lecturer.

Special thanks are extended to the anonymous reviewers whose constructive comments and suggestions greatly improved the quality of this work.

About Authors

Alexander Veniaminovich Filimonov

Visiting Lecturer, Post-Graduate Student, Department of Operations Management and Logistics, Graduate School of Business, National Research University Higher School of Economics, Moscow, Russia (101000, Moscow, Myasnitskaya street, 20); ORCID https://orcid.org/0009-0004-1087-274X e-mail: Filimonov.a.v@hse.ru

For citation

Filimonov, A.V. (2026). Microfoundations of Dynamic Capabilities in Small and Medium-Sized Enterprises: Results of a Systematic Literature Review. Journal of Applied Economic Research, Vol. 25, No. 1, 348-384. https://doi.org/10.15826/vestnik.2026.25.1.012

Article info

Received October 30, 2025; Revised December 18, 2025; Accepted January 8, 2026.

DOI: http://dx.doi.org/10.15826/vestnik.2026.25.1.012

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