Dynamic Capabilities And Entrepreneurial Competencies: A Framework For Performance Improvement In Sabah's Sme Manufacturing Sector
Abstract
This study explores the relationship between entrepreneurial capabilities (risk-taking, proactiveness, and innovativeness) and dynamic capabilities (sensing, coordinating, and reconfiguring) in shaping firm performance among SME manufacturing companies in Sabah. A conceptual framework was developed based on Dynamic Capabilities Theory, and the study proposes a quantitative research design, where data will be collected from SME manufacturers in Sabah through structured questionnaires and analyzed using Structural Equation Modeling (SEM). Although empirical validation has not yet been conducted, the proposed model suggests that dynamic capabilities mediate the link between entrepreneurial capabilities and organizational performance, highlighting adaptability and innovation as critical success factors. The framework also speaks to scholars, policymakers, and practitioners interested in the implications of conflict contexts. It will provide a theoretical foundation for future empirical studies, will support policymaking to improve the competitiveness of SMEs and managers to enhance adaptability and resilience as well as contribute to the development of society in encouraging sustainable industrial growth and employment opportunities. Overall, this research is beneficial to the growth of the SME manufacturing sector in Sabah by focusing on entrepreneurial and dynamic capabilities as contributors to long-term performance.
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Publication Date
01 September 2026
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European Publisher
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1st Edition
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1-1
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Accounting and Finance, Business and Management, Communication, Law and Governance
Cite this article as:
Loong, A. H., Lada*, S., Madli, F., Gulabdin, S., Karunia, E., Sugiati, T., & Usman, F. (2026). Dynamic Capabilities And Entrepreneurial Competencies: A Framework For Performance Improvement In Sabah's Sme Manufacturing Sector. In Y. Naoyuki, A. Peng Hwa, & J. Matthes (Eds.), GLY-Upcoming Volume: Innovating Together: The Convergence of Management, Communication, and The Digital Transformation, vol -. European Proceedings of Social and Behavioural Sciences (pp. 0-0). European Publisher. https://doi.org/10.15405/epsbs.2026.09.27