Climate adaptation in food SMEs : a dynamic capabilities and organizational learning perspective : evidence from Kymenlaakso

Abstract

Climate change poses serious operational challenges for small and medium-sized enterprises (SMEs) in the food industry. However, the processes through which these firms detect climatic threats and integrate adaptive practices are not well understood. This thesis explores how food-sector SMEs in the Kymenlaakso area sense climate-related triggers, seize opportunities for climate adaptation, and transform their operations through learning and capacity building. The theoretical framework used to study these mechanisms is the dynamic capabilities theory (sensing, seizing, transforming) and organizational learning. This study used a qualitative and interpretive case study design based on semi-structured interviews with five small firms and secondary sources of data. The credibility of the findings was enhanced through data triangulation. The findings reveal that climate adaptation in SMEs is developed by interrelated processes: identifying climate-related disturbances, translating insights into innovation opportunities, and internalizing new practices in the long run. Firms recognize climatic pressures like heatwaves, fluctuations in supply chains and uneven energy needs. These catalysts drive opportunity-driven behaviours, such as technology investments, re-adjusted sourcing behaviours, better storage and processing systems, and energy-efficient operations. Organizational learning plays a key role, and it can be in the form of experiential and social learning. This study also finds that there is a clear difference between the responses of small firms and micro-enterprises; small firms rely on formal structures and long-term strategies, whereas micro firms use flexible, informal, and owner-driven practices. These mechanisms collectively contribute to the enhancement of adaptive capacity as they allow SMEs to anticipate future climate-related pressures, respond proactively and ensure continued operations. This thesis also contributes to the existing literature on climate adaptation in SMEs; by demonstrating how dynamic capabilities are revealed in resource-constrained contexts and how organizational learning supports to promote adaptive behavior. Managerial implications include the need to formalize the learning systems and investment in personal networks which help to share knowledge and incorporate climate considerations in daily decision-making. The limitations of this study primarily include its restricted regional and sectoral focus. Future studies could examine comparative cases with other regions, longitudinal studies, and cross-sector differences in adaptive capacity.