The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland

This paper focuses on the critical role of business-to-business (B2B) high-tech small and medium-sized enterprises' (SMEs) dynamic capabilities and strategic agility during the COVID-19 pandemic. Based on the exploratory case studies of 5 Finnish high-tech SMEs, we find that the case SMEs enacted different processes and utilized resources and capabilities creatively to mitigate the impact of COVID-19 and leverage it as an opportunity. Findings indicate that agile adaptation and new opportunity utilization were the primary means of dealing with the disruptions the COVID-19 pandemic brought about. These findings indicate effective utilization of sensing and seizing capabilities and engagement with opportunity recognition and discovery to capture opportunities and deal with the impact of the pandemic on their businesses. The results further suggest that the outbreak of COVID-19 triggered a fight-or-flight survival instinct among B2B SMEs due to unprecedented levels of market uncertainty. As such, the sensing capability of B2B SMEs allowed them to identify the market threats and opportunities and understand the prevailing market situation. Accordingly, B2B SMEs seized the identified threats and opportunities by reconfiguring their business models and face-to-face and online operations. The digital technologies facilitated the online presence and promoted communication with existing and new customers. Interesting implications emerge from these findings.