Dynamic Capabilities and Project Management in Small Software Companies

A small software company depends on its capability to adapt to rapid technological and other changes in its environment—its dynamic capabilities. In this paper, we argue that to evolve and maintain its dynamic capabilities a small software company must pay attention to the interaction between dynamic capabilities at different levels of the company — particularly between the project management and the company levels. We present a case study of a small software company and show how successful dynamic capabilities at the company level can affect project management in small software companies in ways which may have an adverse impact on the company’s overall dynamic capabilities. This study contributes to our understanding of the managerial challenges of small software companies by demonstrating the need to manage the interaction between adaptability and flexibility at different levels of the company.