In small firms, adaptive capability exercises a handling grip on competitive strategy for superior performance primarily acting as a mediator and may offset, through attenuation, the adverse impact of limited resources. Besides exercising a handling grip on competitive strategy adaptive capability is more important than competitive strategy per se for superior performance. Adaptive capability simultaneously undertakes additional secondary roles reinforcing innovation competitive strategy for innovation related outcomes. Adaptive capability reflects managerial proficiency for competitive actions which is why it may offset, through attenuation, the adverse impact of small firm limited resources
