This study aims to investigate the role of dynamic capabilities (DCs) in the financial performance of the small and medium enterprises (SMEs) during COVID-19. Furthermore, it took chief executive officer gender to moderate the relationship between DCs and financial performance.
This study used the survey approach to collect the data. Regression analysis was used on 563 responses to test the proposed hypotheses.
The results showed that DCs have a significant positive effect on the SME’s operating level and revenues. Moreover, it also moderates the DCs and financial performance during COVID-19. The results revealed that firms that used the DCs during COVID-19 not only survive during the COVID-19 tough time but also enjoyed a decent revenue level.
To the best of the authors’ knowledge, this study is the first study to establish the link between DCs and SMEs operating and revenue level during the COVID-19 pandemic in Pakistani settings.
