Small and Medium Enterprises in Mexico and the Craft Beer Sector in Baja California:

Dynamic Capabilities, Culture, and Innovation:

This article focuses on how the case of craft brewery, a small and medium-sized enterprise in

Mexico, has adopted strategies to address these challenges in the face of changing demand and

uncertainty in the wider global environment, such as the COVID-19 outbreak. The article provides

an in-depth analysis of how these SMEs are using their knowledge management capabilities, that

is, how they are using the information, skills and experience they have to become more

competitive.

The article highlights the paths that small and medium-sized start-ups in the region have taken in

terms of creativity (i.e. innovative thinking), innovation (i.e. developing new products and

approaches) and brand image building. To better understand these industries, the authors use the

theoretical frameworks of dynamic capabilities and knowledge management, two concepts that

explain how firms can continuously adapt and improve their capabilities and how they can

effectively process and utilise knowledge, respectively.

The article conveys to us the message that SMEs can use local cultural and geographical strengths

as well as entrepreneurial innovation and creativity to find competitiveness and success in the face

of global challenges and uncertainty. In the craft beer industry in Mexico's Baja Peninsula, these

entrepreneurs are able to respond to changes in market demand by applying their knowledge

management skills (gathering, organising and applying knowledge) and innovation skills

(developing new products and approaches). At the same time, they are able to further increase

their competitive advantage by establishing links with other companies and industries in the
region.

As a result, the study found that Mexican SMEs are quite complex and diverse. The success of

SMEs in emerging industries depends on a number of aspects, including management and

knowledge of the product production process, brand image building, strong links with local

industries and the entrepreneur's vision and goals that are closely linked to innovation and

creativity. Together, these factors drive the competitive success of these firms in emerging

industries.

In summary, this article shows us that despite the many challenges and uncertainties that SMEs

generally face, they can use local cultural and geographical factors, as well as entrepreneurial

innovation and creativity, to create opportunities for themselves to be competitive and successful.

In these emerging sectors, entrepreneurs can adapt to changes in market demand by making good

use of their knowledge management skills and their ability to innovate, while gaining a

competitive advantage through linkages with the region. Therefore, we should not simply see

SMEs as a barrier to innovation; in fact, they have great potential to innovate and succeed,

supported by cultural and geographical factors. Therefore, especially in the face of global

challenges and uncertainty, SMEs are not incapable of success. On the contrary, by applying their

knowledge management skills, their ability to innovate and their strong connection to the local

culture and geography, these companies are able to stand out from the competition. This potential

for success is particularly evident in the craft beer industry in Mexico's Baja Peninsula and

deserves further attention and learning.