The purpose of this study is to verify the effect of the dynamic capabilities required for
Small-to-medium manufacturing companies on the business performance under the uncertainty of market envitonment. The data were collected from 428 managers of SMEs in Korea. As a result, it was confirmed
that the production process moderates the relationship between the dynamic capability and the business
performance, In terms of production process type, firm with mart to stock production process method had a
signficant effect on financial performance, and opportunity competence and resource acquisition ability had s
significant effect on nonfinancial performance. Make to order production process method resource
acquisition capacity has a significant effect on financial performance, while resource acquisition capacity and
resource reconstruction capability have an effect on nonfinancial performance. This study implies that
companies, who try to enhance their dynamic capabilities, should consider their manufacturing type and
enhance the appropriate dynamic component of capabilities which is suitable fort the manufacturing type.