Environmental Turbulence, Dynamic Capabilities and Business Growth in Small and Medium Enterprises in East Java, Indonesia

Abstract

This study aims to investigate the effect of environmental turbulence and dynamic capabilities on the growth of small and medium-sized enterprises (SMEs) in East Java, Indonesia. One hundred SME business owners are surveyed for this investigation. According to the findings of the study, environmental turbulence and dynamic capabilities have a positive correlation with business growth. This is due to the fact that with increasing environmental turbulence, businesses must be flexible and responsive to these changes in order to experience advancement and operations. Dynamic capabilities are a key factor in the growth of businesses. They allow companies to navigate the challenges of a dynamic and turbulent business environment effectively, capitalize on opportunities, and remain competitive.