SUSTAINABILITY OF THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs), A DYNAMIC CAPABILITY APPROACH

Small and Medium Scale Enterprises (SMEs) in the southeast of Nigeria face great sustainability challenges, making most of them die within the first-fifth year of establishment. Therefore, this study examined how dynamic capability can help them sustain their performance. Specifically, the study looked at the nexus between sensing capability and performance sustainability of SMEs in Southeast Nigeria. The study employed the use of survey research design with a population of 200 owners of SMEs. Primary source (questionnaire) of data collection was used, which was subjected to both validity and reliability test. The data were analyzed through the use of Pearson Product Moment Correlation Coefficient and hypothesis tested at a 5% level of significance. The result indicated that Sensing Capability has a statistically significant relationship with the Performance Sustainability of small businesses in Southeast Nigeria (r = .909; p-value < 0.05). The study, therefore, concluded that the more firms are alert to the changes in their environment, the more they can sustain their performance and last longer in the environment. Among others, the study recommended that SMEs need to give equal attention to what is happening in their environment as they give to what is happening within their firms, as this will enable them to react swiftly to changes in the environment.  Keywords: Dynamic Capability, Sustainability, Performance, Sensing Capability, SMEs and South-East Nigeria.