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Dynamic capabilities enable businesses to build a sustainable competitive advantage (Teece, 2007). This study investigates whether supply chain sensing (SCS) and supply chain agility (SCA) form a dynamic sensing and agility capability (DSAC) that enhances firm performance. Most empirical research on dynamic capabilities examines large organizations; this study investigates dynamic capabilities in small to medium enterprises (SMEs). SMEs form a significant part of the world economy and often have limited resources compared to large organizations. We utilize a survey of 139 respondents from SMEs in a single industry - the printing industry. Our analysis, both an EFA and PLS-SEM, find that SCS and SCA are different constructs that combine to form a dynamic sensing and agility capability. We found that this dynamic sensing and agility capability positively affects firm performance but not supply chain impact. [ABSTRACT FROM AUTHOR]

Leaders of small firms often lack support staff to whom they can delegate managerial tasks. Related to the small business management paradigm, these leaders need insight into what management practices to employ as they simultaneously balance operations, administration, and human resource duties. Strategic planning has been the focus of much scholarly attention. However, the effect of strategic planning on small business performance is unclear. We attempt to provide clarity by establishing a higher-order component construct, comprehensive strategic approach, which includes three related management practices: goal setting, strategic planning, and financial ratio analysis. We find evidence that a comprehensive strategic approach enhances small business performance. [ABSTRACT FROM AUTHOR]