Abstract:
The research examines the use of dynamic capabilities to achieve sustainability of
businesses, in the context of Small and Medium-sized Enterprises (SMEs) operating in
the construction industry of South Africa. It is found that the integration of the two
theoretical concepts has not been sufficiently discussed in relation to SMEs, particularly
in the context of the construction industry, which is an important sector for the discussion
of sustainability in business.
The study is significant because it considers the increasing pressure on businesses to
deliver on the social, environmental, and economic dimensions of sustainability, as well
as the struggle by SMEs for survival. Most SMEs face this challenge leading to their
winding up within the first few years. The study finds that the struggle for survival creates
the tendency to focus exclusively on the economic dimension of sustainability, thereby
missing the point that the triple bottom-line of sustainability is interlinked with longevity
and profitability, especially in the modern-day business world. Thus, the study focuses
on sensing, seizing and transformation, as dynamic capabilities necessary for SMEs to
tackle the challenges.
The study relies on evidence from empirical research and semi-structured one-on-one
interviews with those individuals who are responsible for the sustainable performance of
their SMEs in the construction sector of South Africa. In gathering the evidence, the
research adopted a combination of methodologies involving interpretivism paradigm,
qualitative inductive approach, mono methods, and exploratory design. The number of
participants interviewed was 16 using the instrument of interview guide. The interviews
of participants revealed findings that most SMEs share similar sentiments in
sustainability practices by predominantly focusing on the economic aspect of business
sustainability despite being aware of the social and environmental dimensions.
Subscription in sustainability practices has a positive impact on the social,
environmental, and economic performance of SMEs. The results and findings further
revealed that commitment to sustainability affects company performance in a positive
way; internal resources of SMEs must be equipped with the necessary competencies to
achieve sustainability goals; SMEs in the construction industry must be externally and
internally focused to ensure sustainability; must always focus on understanding and
addressing the needs of their clients and must be service delivery focused to ensure
sustainability in the company. Additionally, it was found that SMEs' performance on
sustainability was positively correlated with their use of sustainable supply management
strategies, and that effective leadership supports sustainability inside the organisation.
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Finally, the study's findings and conclusions showed that the performance of SMEs in
terms of sustainability is strongly influenced by all three of the dynamic capabilities,
namely sensing, seizing, and transforming.
