Enhancing dynamic capabilities to improve sustainable competitiveness: insights from research on organisations of the Baltic region

Abstract

PurposeThe research is aimed at elaborating a model in which dynamic capabilities affect sustainable competitiveness via organisational sustainability practices and the mediating role of organisational ambidexterity.Design/methodology/approachEmphasising the need for business sustainability in the face of technological breakthroughs, resource depletion and increasing expectations of stakeholders, it is necessary to reflect on a long-term organisational resilience that would enable sustainable competitiveness through dynamic capabilities. Hence, the paper provides insights on how an organisation can sustain its competitiveness by constantly balancing between the need for continuous improvement due to the pressure in economic, social and ecological environment, and the pursuit of continuous improvement of performance. The authors used structural equation modelling on data collected via a survey of 455 organisations from the Baltic region.FindingsThe results confirm the relationships between sensing and reconfiguring capabilities and sustainability practices, but reject them for scanning capabilities. They also confirm the impact of sustainability practices on some of the pillars of sustainable competitiveness. The research disclosed that ambidexterity was a mediator between dynamic capabilities and sustainable competitiveness.Originality/valueThe paper discloses the link between dynamic capabilities and sustainable competitive advantage by identifying the main characteristics of the constructs and revealing the linkage between them.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

“…It includes exploiting of existing resources and knowledge and closely monitoring external developments (Teece, 2007; Torres et al , 2018). Generating and disseminating market intelligence are basic routines of this DC category, which requires the frequent use of embedded firm routines to scan and explore technologies and markets and interpret environmental signals (Karman and Savanevičienė, 2020; Pavlou and El Sawy, 2011; Roberts et al , 2016; Tallot and Hilliard, 2016). According to Roberts et al (2016), sensing opportunities is a key DC, and its effectiveness depends on frequently scanning and exploring technologies and markets.…”

“…According to Roberts et al (2016), sensing opportunities is a key DC, and its effectiveness depends on frequently scanning and exploring technologies and markets. Sensing capabilities include monitoring and knowledge acquisition to learn and interpret environmental signals (Karman and Savanevičienė, 2020). Sensing also means recognizing and understanding the business ecosystem and market: its latent demands, the structure and development of its industries, and the potential responses of suppliers and competitors (Zhou et al , 2019; Karman and Savanevičienė, 2020).…”

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

“…Competitiveness in its connection to sustainable development is studied in the works of (Afum et al 2020;Alshubiri 2020;Karman and Savanevičienė 2020;Nadalipour et al 2019). We see that it is considered from the positions of the economy as a whole and public administration, but separately from entrepreneurship and corporate management.…”

Risk and Opportunity Assessment Model for CSR Initiatives in the Face of Coronavirus

“…The fact that enterprises undertake socially responsible activities may be economically utilitarian for them and serve to generate benefits [26], including image improvement [27] and reputation [28,29]. According to the literature, involvement in CSR contributes to building lasting, loyal relations with interest groups [30,31], stimulating the internal motivation of employees [32] and influencing the attractiveness of the company as a potential employer [33], shaping the attitude of stakeholders to the company and improving its competitive position [34]. However, this change is not permanent because it depends on the perception of the company's activities [35], which may have a negative impact on the image the company's reputation [36].…”