Dynamic Capabilities and Competitive Advantage of Telecommunication Companies in Ghana. The Role of Innovation Capability

Abstract

This paper explored the link between dynamic capabilities, innovation capabilities, and competitive advantage of telecommunication companies in Ghana, considering a mediation interaction. Data were obtained from two hundred and fifty (250) employees from selected telecommunication companies in the Accra metropolis through simple random probability sampling. However, two hundred and forty-two (242) responses were deemed accurate and used in the analysis. Partial Least Squares (PLS) based on Structural Equation Modeling (SEM) was employed in the analysis. From the findings, this study’s data met internal consistency reliability, convergent, and discriminant validity. Dynamic capabilities had a positive and significant impact on innovation capability and competitive advantage. Also, dynamic capabilities through innovation capability positively impacted competitive advantage and were statistically significant. Based on the findings, it’s recommended that organizations and managers consider both exploitation and exploration competencies in product development as both competencies influence various aspects of an organization’s competitive advantage, as this will help ensure organizations’ sustainable performance and thus remain competitive.