Capability Configuration in Software Industry SMEs: The CAO Model of Ordinary Capabilities*. (1st December 2017)

• Record Type: Journal Article
• Authors: Daspit, Joshua J.; D'souza, Derrick E.
• Is Part Of: Journal of small business management. Volume 55(2017:Dec.)Supplement 1
• Page Start: 141
• Page End: 162
• Publication Date: 2017-12-01
• Subjects: Small business -- Management -- Periodicals; 658.022
• DOI: 10.1111/jsbm.12330
• Languages: English
• ISSNs: 0047-2778

Abstract

Abstract : Ordinary capabilities contribute to firm core competencies and are prominent drivers of firm performance. However, our understanding of ordinary capabilities, and how they are leveraged to advance performance in small and medium‐sized enterprises (SMEs), remains unclear. We review prior literature and introduce the Customer‐Alignment‐Operational (CAO) model of ordinary capabilities, which identifies three types of ordinary capabilities: customer, alignment, and operational capabilities. Using data collected from software industry SMEs, we find that CAO capabilities are configured in previously undiscovered ways to enhance firm performance. The findings advance our understanding of ordinary capability types and offer insight into how ordinary capabilities are configured to generate firm value.