Understanding the development of the organisational capabilities in micro manufacturing enterprises

Abstract

Competitiveness has been increasing dramatically in last few decades. Practitioners and researchers investigated new ways to gain competitive advantage in competitive markets. Organisational capability theories are developed to understand role of internal resources of organisations in competition and organisational capabilities are seen the source of competitive advantage in management literature. Great amount of research has been conducted in the field of organisational capabilities focusing mainly on Large enterprises and some on SMEs. SMEs are seen as the backbone of the economies and the importance of SMEs are well documented in literature. Micro enterprises are included the definition of SMEs but researchers ignored the Micro enterprises due to the difficulties of data collection and there is no research in organisational capabilities field in the context of micro enterprises. In this research, it was aimed to understand development of organisational capabilities in micro enterprises. Organisational capability theories are reviewed and a theoretical framework was developed with a system perspective. A conceptual framework was developed for Micro enterprises to understand relevance of and development process of organisational capabilities. An action research methodology is used to understand the development of organisational capabilities in Micro enterprises. Finally, relevant and irrelevant organisational capabilities to Micro enterprises were identified. Additionally, development processes of organisational capabilities in Micro enterprises were identified.