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Purpose

The purpose of this study is to shed light on the construction of knowledge-based dynamic capabilities (KBDCs) that enable subcontracting small- and medium-sized enterprises (SMEs) to detach themselves from knowledge stickiness and the subcontracting relationship to innovate in a constraining context.

Design/methodology/approach

Using a qualitative approach, four case studies were carried out with Quebec and French subcontracting SMEs operating in the aerospace sector. The method of Gioia et al. (2013) and Nvivo 12 software were used to structure the data coding process, ensuring transparency and reproducibility of the analyses.

Findings

The results show how SMEs engage in a knowledge creation process to innovate beyond the constraints of their original contracts and develop their dynamic capabilities. The individual, structural and processual dimensions (microfoundations) have been identified to overcome subcontracting SMEs’ knowledge stickiness.

Originality/value

Drawing on the concept of knowledge stickiness and the microfoundation approach, this study enriches the literature on dynamic capabilities based on knowledge management. By unravelling the microfoundations at the individual, process and structural levels of this construction, this study makes several theoretical contributions to the existing literature.

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