Dynamic capabilities in sole proprietorships: theoretical model through grounded theory

The purpose of this study is to identify the model that explains the process of creating dynamic capabilities of the sole proprietorships in the music industry. Following the design of the constructivist grounded theory, the cross-sectional study was carried out with 20 sole proprietorships in the music sector, with participants residing in 10 different countries. The study was conducted under inductive and abductive reasoning through the technique of the semi-structured interview. Through the comparative analysis, groups of businesses were identified as either resistant or dynamic, depending on their relationship to the components of dynamic capabilities. It was seen that sole proprietorships having greater interaction with these components were better adapted to the dynamic environment of the industry. Likewise, it was observed that the emotional factors of the owners are relevant for the development of dynamic capabilities in this type of business. This study proposed a substantive theory about the processes of development of dynamic capabilities in sole proprietorships. The contribution of the study is theoretical, practical, and methodological. A theoretical model is presented of the structure of the dynamic capabilities that are proposed as an adequate methodology for the design of grounded theory and the practical application by sole proprietorships. It is concluded that the sole proprietorships that develop the four components of the proposed model are able to develop dynamic capabilities and are distinguished by the actions taken in these processes and by their favorable results.