Exploring place-based dynamic marketing capabilities in island SMEs: Evidence from Banda Naira, Indonesia

This study explores how SMEs in underserved regions develop and enact dynamic marketing capabilities under conditions of geographical isolation and structural limitations. Drawing on a qualitative case study of small and medium-sized enterprises (SMEs) in Banda Naira, Eastern Indonesia, and using thematic analysis supported by NVivo, the study identifies context-specific manifestations of sensing, seizing, and transforming capabilities. Sensing is shaped by ecological rhythms and local interactions; seizing is facilitated through community-based logistics, social trust, and informal collaboration; transforming emerges through culturally embedded innovation and adaptive experimentation. The findings reveal that geographical embeddedness acts not only as a constraint but as a productive source of localized learning and resilience. It highlights how informal SMEs can build resilience, not by formalization or technological scaling, but through relational marketing strategies rooted in hyperlocal conditions. Implications are discussed for entrepreneurship theory, policy design, and SME development in structurally disadvantaged contexts.