Furthermore, the findings provide empirical support to Ma’s (2002) claim that luck is a crucial factor to explain firms’ competitive advantage. The results enhance the previous works by confirming that the flexibility and adaptability of SMEs are strategic capabilities for them to gain competitive advantage (Pil and Holweg, 2003; Hagen, Tootoonchi and Hassan, 2005; Wicks, 2005) and even outperform their larger counterparts in a dynamic environment. Besides, the approach to study luck from the perspective of organisational culture and structure of the organisation implies that a firm-level analysis is relevant in investigating the performance of SMEs. In fact, from the results, firm-level analysis is more relevant than individual-level analysis when examining the performance of SMEs.