Adaptation of dynamic capabilities: A case of small-scale bakeries in a South African Metropolitan City

Abstract

The paper explores how small-scale bakeries in the South African Metropolitan City adapt and view automation as part of dynamic capabilities. Dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making. They are detailed, critical, stable processes with foreseeable outcomes. This paper argues that automation is part of dynamic capabilities and can enhance operational and financial performance in a small-scale bakery context. As such the paper contributes to operations management literature concerned about efficiency and innovations in small business operations. The study employs a quantitative approach to data collection using a survey questionnaire. The population of the study is 400 bakery managers. A total sample of 120 completed survey questionnaires was achieved. Key findings show a strong correlation between equipment and food safety and show a significant relationship between automation and dynamic capabilities in small-scale bakeries. The study’s findings show that automation is a dynamic capability. It enhances efficiency in production and profitability. This study concludes that there is significant correlation between automation and dynamic capabilities. The correlation explicates the need to integrate automation and other dynamic capabilities for improved operational and financial performance in small business operations.