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.