Dynamic capabilities and innovation in SMEs: analysis of a case of failure

While innovation is considered a key driver of SMEs' competitiveness, there is little research on how SMEs remain innovative. This article aims to fill this gap by considering the role of dynamic capabilities in this process. To answer this question, we use an original approach based on the in-depth study of a case of failure to maintain innovation performance in an SME. The results obtained help to explain the decline of the SME innovation by the absence of certain dynamic capabilities. They shed new light on the relationship between dynamic capabilities and innovation capacity and highlight the influence of dynamic capabilities and their micro-foundations on the innovation capacity, while taking into account the specificities of SMEs.