Abstract

This study aims to propose a conceptual model for dealing with the new normal, by utilizing organizational dynamic capabilities integrated with Islamic values. The results of the integration of the two concepts form the Thayyib innovation capability. As a new concept that can be developed into a new theory about how thayyib innovation capability is developed through dynamic capabilities and Islamic values, it has the following indicators: khuluqiyah, agile-based innovation, thinking new things. The implication of the results of this study is the ability of SMEs to face the new normal by maximizing their dynamic capabilities in managing strategic assets to achieve Allah’s blessings.