Relationship between entrepreneurial competencies and small firm performance: Are dynamic capabilities the missing link?

This paper elucidates the link of dynamic capabilities upon the relationship between entrepreneurial competencies and small firm performance. It is based on the pertinent literature as well as the theoretical foundations of the entrepreneurial competencies, dynamic capabilities and small firm performances. Underpinning by the Resource Based View and Dynamic Capabilities View, a framework is formed based on the economic environment in various countries where in spite of the gigantic economic contribution to the country's economy, the small firms are undergoing a low growth trap. For the better performance of small firms, entrepreneurial competencies and dynamic capabilities are perceived as the prospective solutions. Moreover, the economic fluctuations with the turbulent and unpredictable markets, the dynamic capabilities are considered as an imperative factor to influence the performance of small firms. This paper proposes a conceptual framework in scrutinizing the small firm's performance affected by the entrepreneurial competencies and mediated by the dynamic capabilities.