Abstract
In the literature it is proposed that high adaptive capability is associated with high costs and internal inefficiency, despite the potential benefits to be gained from being adaptive. Investigates a set of adaptability variables that have not been previously researched and, therefore, takes an alternative focus on adaptive capability. Identifies two distinct degrees of high and low adaptive capability in an empirical UK study. Suggests that companies with high adaptive capability seemingly perform better than low adapters, despite the implication of high costs and inefficiency. High adapters also seem to have more comprehensive market orientation and decision‐making style, although they appear to operate in more turbulent external environments. The results extend the current adaptive capability literature, and directions for further research are proposed.
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