Innovation in Small Businesses: A View from the Microfoundations of Dynamic Capabilities

This essay discusses the potential for innovation in small companies, based on the micro-foundations of dynamic capabilities. An essayistic approach was used to provoke reflections on the theme. It was adopted that the cognitive aspects and the specific skills of the managers can influence the innovation capacity of the small company since they are the spokesmen of innovation, and their actions are antecedent aspects of each dynamic capacity, which are the factors that lead to innovation. As a contribution, the essay proposes how micro foundations can be explored to understand innovation in the context of the small business and proposes that the cognitive and interpersonal characteristics of the manager are the basis of micro-foundations of dynamic capabilities in the small business.