The Dynamic Capabilities of High-Turbulent Markets: Indonesian Start-Up Cases During COVID-19 Pandemic

Abstract This study explores how start-ups manage high-turbulent markets during the first six-months of the COVID-19 pandemic, and how dynamic capabilities are operationalized in that situation. A multiple-case study approach was employed to investigate eight start-up cases in Indonesia. Indonesia was chosen to represent an emerging economy with a tremendous growing number of start-ups. The data are presented based on the evolving circumstances of the COVID-19 crisis. The research findings illustrate how dynamic capabilities are operationalized simultaneously with the validation of adjusted business models through simple-experiential routines, iterative executions, and action-oriented processes amidst the high-turbulent markets. Dynamic capabilities that operate in full combination by sensing, seizing, and transforming capabilities potentially can facilitate the creation of values for firms faster than otherwise. This study also identifies specific elements and alignment mechanisms incorporated in the dynamic capabilities.