scholarly journals Effect of Human Capital and Dynamic Capabilities on Competitive Advantage: Mediating Analysis

Author(s):  
Vilani Sachitra

Aim: A better understanding of farm-level competitiveness of agribusiness sector provides the necessary framework for agribusiness farms to compete at domestic and global markets. This study aims to determine the relationships of human capital, dynamic capabilities and competitive advantage in the minor export crop sector in Sri Lanka. Study Design: Minor export crop farm owners involved in the commercial cultivation of cinnamon, pepper and clove in Sri Lanka were surveyed using a personally-administered, structured questionnaire. The regression-based path analysis was used to test the model. Results: The results indicate significant relationships between human capital and capabilities of learning and relationship building as well as between human capital and competitive advantage. Implications: The findings provide useful insights where an understanding of the link between human capital, as a resource, in dynamic capabilities and competitive advantage which allows human capital to be configured appropriately and deployed effectively and efficiently based on dynamic capabilities of the minor export crop farms to achieve competitive advantage. Original: The study has extended our understanding of the importance of human capital for in relation to dynamic capabilities.

Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.


2021 ◽  
Vol 13 (7) ◽  
pp. 4066
Author(s):  
Romina Cheraghalizadeh ◽  
Hossein Olya ◽  
Mustafa Tumer

Using a resource-based view and dynamic capabilities approach, this study investigates both the internal and external factors influencing competitive advantage in the hotel industry. For this purpose, we examine how organizational capabilities may lead to customer relationship building and in turn to competitive advantage. We further test the moderation role of market dynamism on the relationship between organizational capabilities and customer relationship building, and also investigate the mediation effect of customer relationship building on the association between organizational capabilities and competitive advantage. A questionnaire-based study was conducted among hotel employees in Northern Cyprus to test the conceptual model. A set of approaches was applied to detect common method bias and test the validity and reliability of the questionnaire. Correlation and regression analyses were conducted to evaluate the relationships between the variables, and bootstrapping analysis was applied to assess the mediation and moderation effects. The results revealed that organizational capabilities enhance customer relationship building and competitive advantage. Market dynamism as an external factor moderates the relationship between organizational capabilities and customer relationship building. There is also an indirect association between organizational capabilities and competitive advantage through the mediation of customer relationship building. The theoretical and practical implications of the findings are discussed.


Author(s):  
K. M. V. Sachitra

Purpose: This paper analyses the moderating effects of farm owner’s gender and business intention which could impact on the resource-capability-competitive advantage linkage in agribusiness. The study adopts the resource-based view in combination with dynamic capabilities. Design: The sample of the consisted of the farm owners who have experience in commercial cultivation of minor export crops in Sri Lanka. A self-administered structured questionnaire was used to collect data. Findings: Based on the data collected from 456 farm owners, results of the multiple regression analysis suggest farm owner’s business intention has moderating effects upon the relationship between resources, capabilities and competitive advantage. However, statistically significant moderation effect of farm owner’s gender on the relationship between resources, capabilities and farm’s competitive advantage was not reported. Research implications: The result gives positive sign that gender is not a constraint factor to gain competitive advantage at firm level and psyche of the leaders regarding their business intention which can lead to enhance the link between resources, dynamic capabilities and competitive advantage. Originality: The literature gap in competitive advantage literature by highlighting the potential roles of gender and business intention play in the resource-capability-competitive advantage interaction has been addressed. The results provide practical implications for policy makers, government and local communities with regard to selecting suitable resources and integrating them with proper capabilities for greater competitive advantage of the agribusiness sector.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vilani Sachitra ◽  
Chandra Padmini

PurposeIt is aware that entrepreneurial growth has gained some attention in the literature, yet the debate in respect of the determinants of entrepreneurial growth intention (EGI) is far from being complete. The purpose of this study is to identify the key dynamic capabilities that foster EGI in floriculture industry in Sri Lanka.Design/methodology/approachThe study used quantitative approach. The owners of farms who possess commercial experience in floriculture cultivation in Sri Lanka were selected as a target population. A self-administrated structured questionnaire was used to collect data. Valid and reliable indicators were developed to conceptualize five key capabilities and EGI.FindingsBased on the responses from 206 farm owners, results of the multiple regression analysis indicate that organizational learning, technological and alliance formation capabilities are significantly associated with EGI of floriculture farm owners.Originality/valueThe need for common conceptualization of dynamic capabilities and EGI represents a major gap in the literature. The study expands the current debates on entrepreneurial growth and institutional environment, which allows the mapping out of dynamic capability development.


2019 ◽  
Vol 46 (5) ◽  
pp. 722-740
Author(s):  
Vilani Sachitra ◽  
Chong Siong-Choy

Purpose The purpose of this paper is to investigate the moderating effect of religiosity of farm owners on the resource-capability-competitive advantage interaction. Design/methodology/approach A self-administered structured questionnaire was developed to collect data from farm owners who possess the experience in commercial cultivation of three main minor export crops in Sri Lanka. Findings The results of linear regression analysis on 456 responses received suggest that the religiosity of farm owners significantly moderates the relationships between resources, capabilities and competitive advantage of the minor export crop farms, confirming the study hypotheses. Research limitations/implications Future studies should consider the specific impact of different religious affiliations, traits and/or precepts of the farm owners. In addition, educational level, income level and mental capacity of the farm owners should be considered too since they may form part of the observed relationships. Originality/value The study has addressed the gap in literature by highlighting the potential of religiosity in the interaction between resources, capabilities and competitive advantage. From the practical standpoint, besides providing some directions to the farm owners, the results also benefit different stakeholders such as policy makers, government and local communities in suggesting and implementing appropriate measures with regard to selecting suitable resources and integrating them with proper capabilities for greater competitive advantage of the agribusiness sector.


2018 ◽  
Vol 6 (1) ◽  
Author(s):  
Amanda Setiorini,MM.

Globalization changes the business environment, which demands change from every business organization involved, to succeed in the new environment. For that purpose, human resource management needs to be directed to the development of human capital, which assumes employees as assets, not costs, for the company. The implication is that management needs to recognize each of its employees in order to maximize their potential and manage it to be a competitive advantage. This is where performance management plays a very important role.


2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Albert Naiem Naguib ◽  
Eahab Elsaid ◽  
Abdel Moneim Elsaid

This study examines the relationship between dynamic capabilities (experience, routine, skills, firm characteristics, knowledge and technology) and competitive advantage sustainability in the Egyptian pharmaceutical sector. The data was collected using primary and secondary data sources. Primary data was collected from questionnaires distributed to 160 top managers in 20 pharmaceutical firms. The secondary data about pharmaceutical firms like rankings, revenues and market share was collected from external sources such as Intercontinental Marketing Service (IMS). The questionnaires examine six independent variables based on a five-scale Likert scale. The methodology used in the study is non-probability sampling (judgmental sampling), Cronbach’s alpha reliability coefficient and Chi-square tests. The results support the notion that there is a significant relationship between four of the six dynamic capabilities (experience, skills, firm characteristics and knowledge) and the competitive advantage sustainability for pharmaceutical firms in Egypt. Designing the questionnaire and formulating the questions to target the required field was challenging, given that the topic is dynamic and the business scene in Egypt has witnessed drastic political changes since January 2011. The study should assist pharmaceutical companies in Egypt in directing their investments properly and in determining the weaknesses in their dynamic capabilities that need to be addressed.


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