TY - JOUR AU - Valdez Juárez, Luis Enrique AU - Ramos Escobar, Elva Alicia AU - Borboa Álvarez, Edith Patricia PY - 2019/01/01 Y2 - 2024/03/29 TI - The Dynamic Capabilities and the Entrepreneurial Orientation: Source of Innovation and Profitability in the Mexican SME JF - Small Business International Review JA - Small Bus Int Rev VL - 3 IS - 1 SE - Research Articles DO - 10.26784/sbir.v3i1.158 UR - https://sbir.upct.es/index.php/sbir/article/view/158 SP - 49-66 AB - In modern times, competitiveness is a challenge and opportunity for organizations. The globalization of markets and the introduction of new technologies in new business models, large companies and especially SMEs, require strategies that encourage them to strengthen their competitiveness and increase profitability. For this, SMEs are incorporating actions derived from the dynamic capabilities, among which the orientation towards entrepreneurship, organizational learning, R&D, and market strategies stand out. The main objective is to analyze if, the dynamic capabilities and the entrepreneurial orientation, have influence on the activities of innovation and the profitability that is manifested in the SME. The study focuses on a sample of 1,012 SMEs from the Northwest region of Mexico; the data collection was made through a structured survey directed to the company manager during the period from September to December 2016. The statistical technique based on the analysis of variance through the Structural Equation Method (SEM) with the support of Partial Least Square (PLS), it was used to test hypotheses. The results reveal that the dynamic capabilities have a strong influence on the variables: entrepreneurial orientation, innovative activity and the profitability of the SME. In addition, we found that entrepreneurial orientation and Innovation activities significantly influence the profitability of SMEs. The research contributes to the development of the literature of the dynamic capabilities and of the entrepreneurial orientation ER -