Enabling factors of adaptive capability in small and medium enterprises

Abstract

This paper aims to define organisational adaptability and explain the conditions and factors affecting SMEs’ (Small and Medium Enterprises) ability to adapt to the environment rather than fire fighting. The results are based on an ongoing R&D work as part of a European FP7 project called ‘FutureSME’. We identified that a combination of factors contributes to adaptability that encompasses interfaces between resilience, agile operations and strategy. This paper contributes to theory and practice by taking vastly diverse literature into a single framework to explain the organisational adaptability concept as demonstrating its use in understanding adaptive behaviour in manufacturing SMEs