Introduction - Firms nowadays are trying to build a sustainable competitive advantage toensure their long term stay within the market. But as the business environment is rapidlychanging due to the new technology, it makes it difficult for firms to develop a competitiveadvantage. Moreover, SMEs in emerging economies are struggling with how to develop theircapacity to respond to the shift in the business environment. Purpose - The purpose of this study is to adopt Teece’s (2007) framework in the developingcountry to be able to understand and identify the capabilities that an entrepreneur needs tohave to be successful, especially emphasizing how Saffron produces SMEs in Afghanistancan perform the good competition in an unstable environment and provide factors on howentrepreneurs can get a sustainable competitive advantage using the DC framework. Method – This study was carried out by using a qualitative approach with an exploratorynature and a case study research design. The main data was collected by conducting in-depthinterviews with entrepreneurs in the saffron business. To analysis the collected data, the sixstep of thematic analysis method by Barun and Clarke (2016) was used. Findings – In the collected data, there is evidence that indicates that entrepreneurs inemerging markets can use the DC framework to gain and increase their capabilities to dealwith the uncertainty in the business environment and firms need to change theirorganizational structure from centralized to decentralized. Meanwhile, flexibility inoperations and adaptability to changes can afford SMEs with a greater possibility to gain acompetitive advantage in an unstable business environment. Further, while female'sparticipation in the value chain of the economy is more effective compared to males, theirrole in leading businesses remains marginal, therefore, firms cannot gain competitiveadvantage by systematically excluding some resources such a women’s. There is potentialloss of excluding women if international partners would prefer more diversity in products.Human resources is also a capacity of SMEs that is difficult to replicate. Hence, SMEs inemerging markets cannot gain a competitive advantage by workforce gender segregation.