Dynamic Capabilities and the Impact of Corporate Strategy on Business Sustainability: A Case Study of Thai SMEs

Abstract

         In the context of rapidly changing and volatile business competition, organizations face an urgent need to strengthen their strategic adaptability, particularly by developing dynamic capabilities. These capabilities– which include the ability to sense opportunities and threats, orchestrate and leverage resources, and reconfigure operations to foster innovation and resilience – are critical foundations for formulating organizational strategies that effectively respond to external complexities. Such strategic competencies play a pivotal role in enhancing long-term business sustainability. This academic article examines the integrated relationship between dynamic capabilities, organizational and corporate strategy, and business sustainability by employing a conceptual framework that synthesizes dynamic capability theory with holistic sustainability perspectives. The study focuses on small and medium-sized enterprises (SMEs) in Thailand.

          Through theoretical analysis and empirical case study examination, the findings show that organizations that systematically develop and deploy dynamic capabilities are better able to formulate flexible strategies aligned with their vision and mission, while also addressing stakeholder expectations in a balanced way. The key insights confirm that integrating dynamic capabilities into organizational strategy formulation enables firms to remain competitive amid environmental uncertainty and contributes to the creation of sustainable economic, social, and environmental value. From a practical standpoint, enhancing dynamic capabilities is identified as a crucial mechanism that enables Thai SMEs to overcome resource constraints and advance ESG-oriented operations toward long-term sustainability.