Besides that, even though luck might draw controversy and arguments, it is used in this study as a reminder that flexibility and adaptability cannot be strategic capabilities for SMEs to gain competitive advantage without benefiting the firm through unexpected changes and accidental discoveries. In stable environments, flexibility can have a negative effect on SME competitive advantage (Grant, 1991). Nevertheless, the study on luck will hopefully be able to enhance the understanding on the creation of competitive advantage for SMEs. As a whole, the results support the argument that entrepreneurship and luck are the strategic resources to explain the competitive advantage of SMEs. However, a more comprehensive model is required to include the effect from industry-level factors as discussed by Porter (1985) in the industrial organisational model and the effect of a firm’s strategy (Porter, 1985) to explain competitive advantage of SMEs.