Market-based dynamic capabilities for MSMEs: Evidence from Indonesia's ornamental fish industry

In a dynamic and competitive market such as the ornamental fish industry, organizations need dynamic capabilities (DC) beyond routine capabilities to thrive. Although many studies have been on DC, few still include micro-enterprises as research subjects. This study aims to develop a conceptual model of Market-Based Dynamic Capabilities (MBDC) for micro, small, and medium enterprises (MSMEs) in the Indonesian ornamental fish industry. The MBDC model integrates three different perspectives of management strategy to achieve a competitive advantage: Resource-Based View (RBV), Market-Based View (MBV), and Knowledge-Based View (KBV) as antecedents of MBDC and with the moderating variable of government support. The MBDC model was analyzed based on the responses of 682 ornamental fish producers by using partial least squares structural equation modeling (PLS-SEM) and applying the embedded two-stage approach for reflective-reflective and reflective-formative types of higher-order constructs. The results show that MBDC can be established in dynamic and competitive market conditions for organizations with market-based resources, capabilities, and knowledge. Furthermore, MBDC will influence organizational performance and subsequently drive export propensity. Government support also plays a role in strengthening or weakening the formation of MBDC.