Sustainability and competitive advantage in small restaurants: a dynamic resource–relationship framework

The objective of this research are to find out the effect : (1). resources on sustainable competitive advantages; (2). dynamic capability to continuous competitive advantage; (3). resources on company performance; (4). dynamic capability to company performance; (5). sustainable competitive advantage on company performance; (6). dynamic resources and capabilities on sustainable competitive advantages ; (7). dynamic resources and capabilities as well as the competitive advantage of sustainable. sample unit in this research using survey 69 companies which producing coffee in lampung, with interview to manager and director with total number of responden 345 respondents and all hypothesis accepted and positive effect to this research. the conclusion of this reserach are : (1). resources affect sustainable competitive advantage; (2). dynamic capabilities affect sustainable competitive advantage; (3). resources affect the firm's performance; (4). dynamic capability affects the firm's performance; (5). sustainable competitive advantage affects the company's performance; (6). resources and dynamic capabilities together affect sustainable competitive advantage; (7). resources, dynamic capabilities and sustainable competitive advantages jointly affect the company's performance the effect of resource, dynamic capability and sustainable competitive advantage simultaneously on company performance is positive and significant, with sustainable competitive advantage variables having the most dominant influence on firm performance. this shows that positively improving the effectiveness of resources, dynamic capabilities and sustainable competitive advantage will result in improved corporate performance.

Fundamentals of Business Strategy

Creating dynamic capabilities through business partnerships: the role of resources and capabilities and implications for performance

Inside the Black-box: Analysing the Generation of Core Competencies and Dynamic Capabilities by Exploring Collective Minds. An Organisational Learning Perspective** The paper combines resource-based thinking with perspectives from theories of organisational learning and knowledge management. According to the resource-based view (RBV) strategy can be defined as emergent pattern of interaction generating core competencies and dynamic capabilities. These processes of interaction and their relation to core competencies and dynamic capabilities are of major concern in the presented analysis. A synthesis with learning theories further leads to the basic assumption that processes of knowledge identification, knowledge diffusion, knowledge integration and the enactment of the environment are critical for generating core competencies. Moreover, learning theories show how to approach the causal ambiguityargument that is important in the explanation of core competencies given by RBV. It will be argued that the analysis of the shared mental model of the organisational members is a method to explore critical processes for generating core competencies. A related research instrument will be validated in a case study analysis that was conducted in a medium-sized enterprise aiming at testing the instrument and the aforementioned basic assumption. The instrument can explore the critical processes in which the generation of core competencies and dynamic capabilities is embedded in. It provides a better understanding of the critical processes within the organisation than the RBV. Key words: Causal ambiguity, collective minds, competitive advantages, core competencies, dynamic capabilities, knowledge management, organisational learning, resource-based view, strategic processes 1. Introduction The resource-based view (RBV) of the firm has been thoroughly discussed in strategic management literature. The basic assumptions of this approach have been developed further during the last twenty years, specified for certain organisational functions and validated in hundreds of empirical analyses (see Barney/Arikan 2001; Rouse/Daellenbach 2002; Ray/Barney/Muhanna 2004). As a consequence, the RBV became a leading paradigm in strategic management (Wernerfelt 1995; Bresser 1998). Even though there is considerable theoretical and empirical progress in resourcebased research shortcomings still exist in the theoretical underpinnings of the approach. These restrict related empirical investigations that try to measure critical resources and processes for sustainable competitive advantages. One of the major shortcomings of the RBV is the fact that the organisation remains a black-box even though it is considered as the source of organisational success (Ortmann/Sydow 2001; Priem/Butler 2001). There is a lack in explanations of how heterogeneity arises (Helfat/Peteraf 2003: 997). This is not only a limitation in the eyes of those who regard the RBV as a theory of competitive advantage - if the major interest relies on rules for richness, the causal ambiguity argument of the RBV is somehow dissatisfying. Causal ambiguity means that the link between the resources controlled by a firm, internal processes and sustained competitive advantages can neither be attributed from outside nor from organisational members (Barney 1991). Rather, the causal ambiguity paradox - even though it is inspiring - veils the view on organisational internal processes that might have a strategic impact. The RBV does not only lay emphasis on the internal organisation but also limits a deeper understanding of organisational internal strategic processes. For a further development of strategy research a broader perspective of social action within and between organisations as well as between organisations and environments is essential. As Mintzberg (1978, 1994) points out these processes of forming a pattern of strategic action have been neglected in strategy research (see also Quinn 1984). …

This article is an exploratory investigation of the different ways in which the integration of strategic sustainability influences the competitive advantage and the long-term survival of select firms in emerging economies. Using a desk review approach, the paper studies the existing empirical and theoretical literature that deals with sustainability practices, competitive strategy, and corporate-performance models. A majority of the materials consulted contend that the adoption of the Environmental, Social and Governance (ESG) framework by corporate businesses is a source of advantage and competitiveness for companies. The studies cite several benefits of the strategy, among them are the efficiency in terms of the operation cost, the improvement of the brand image, the motivation of green innovation and the attraction of stakeholders. In addition, firms with sustainability-targeted strategies will not only be able to lower their expenses through resource optimization but will also be able to gain a competitive advantage in global markets with strict sustainability requirements and become more resilient to environmental and regulatory risks. Quite a few businesses, on the other hand, are still struggling with the problem of turning sustainability into the core of their long-term strategic planning because of institutional instability and the existence of conflicting short-term financial pressures in their operating environments. Although this is the case, the literature always points out that such companies will eventually perform better and will be in a stronger position in the market compared to those that have not taken such initiatives. The article argues that the implementation of sustainable strategies is fundamental not only for the achievement of environmental goals but also for the increase in the competitiveness of the companies. In essence, the analysis advocates the view that sustainability integration turns into business benefits when it is considered as a provider of new innovation and new market opportunities. Moreover, it allows the capturing of the long-term financial benefits embedded in Resource-Based Views (RBV), Dynamic Capabilities (DC) and Stakeholder Theory (ST) perspectives. To be efficient, the integration must be supported by the right governance and regulatory frameworks and, at the same time, it needs access to a funding source willing to finance sustainable projects. Therefore, the agenda of capacity building will have to be prioritized if firms want to use the commitment to ESG principles as a source of added value and sustained competitive advantages. The authors encourage corporate management and governments to take action for a mutual benefit by making the cooperation between their activities a powerful tool to motivate climate change mitigation innovation and increase firms’ intensities of competitiveness in line with the quick changes of the globalized markets.

The competitive environment within which organizations operate is evolving faster than ever, prompting organizations to change to keep up with the environmental changes. The dynamic capabilities (DCs) view seeks to answer how organizations attain and sustain competitive advantage in changing environments. In the past two decades, there has been a proliferation of research in the DCs domain; yet much remains to be investigated regarding the antecedents and outcomes of DCs. The term “dynamic marketing capabilities” (DMCs) refers to a subset of DCs with the emphasis on customer value. This research studies four DMCs: proactive market orientation, agility, opportunity creation, and value innovation. The development of DCs may be triggered by the necessity to reconfigure resources in dynamic environments or by managers’ decisions to change the current way of doing things in an attempt to improve performance. Therefore, environmental dynamism and dynamic managerial capabilities are antecedents of DCs. To achieve competitive advantage, organizations can employ two distinct but complementary strategies. First, they can match environmental demands by reconfiguring and renewing their organizational resource base. Second, they can create market turbulence. Therefore, these two strategies act as mediators between DMCs and organizational outcomes. A conceptual framework is developed in order to examine the relationship between DMCs, their antecedents, and outcomes. A sample of 270 usable responses was obtained from top and senior managers working in Australia. After ensuring the constructs’ reliability and validity, the hypotheses were tested by means of hierarchical regression analysis and structural equation modeling. The results indicate that environmental dynamism and dynamic managerial capabilities positively affect the studied DMCs; however, the effect of dynamic managerial capabilities is stronger. Moreover, DMCs have a positive impact on operational marketing capabilities and induced market turbulence; these in turn positively affect organizational outcomes. The multi-mediation tests confirmed that operational marketing capabilities and induced market turbulence mediate the effect of DMCs on organizational outcomes. This study contributes to and extends the knowledge of DCs by proposing an integrative conceptual framework, explaining the antecedents of DMCs and the mechanism by which DMCs are linked to organizational outcomes. The findings re-emphasize the need for DCs in dynamic environments and highlight the critical role of dynamic managerial capabilities. Another contribution is that the study incorporates the element of induced market turbulence, hitherto missing in the literature pertaining to DMCs. This study also emphasizes that operational marketing capabilities mediate the relationship between DMCs and organizational performance. Moreover, four distinct DMCs (i.e., proactive market orientation, agility, opportunity creation, and value innovation) are identified, and scales are developed and validated to measure them. The findings suggest that these DMCs perform as anticipated. This research provides several insights for managers regarding DCs and how to apply them to organizations. The results of this study demonstrate that it is necessary for organizations to invest in developing DMCs, not to achieve performance improvement directly, but to optimize their operational marketing capability configuration. This, in turn, improves organizational outcomes. Moreover, managers are encouraged to invest in the development of DCs as a strategic rather than tactical approach. Another implication is that in ambiguous environments, organizations need to not only adapt to the environment, but also to employ strategies of environment constructing.

In today's rapidly evolving business environment, sustaining competitive advantage demands an integrated approach that combines the strengths of both the Resource-Based View (RBV) and Dynamic Capabilities (DCs). RBV emphasizes the importance of valuable, rare, inimitable, and non-substitutable (VRIN) resources as key drivers of long-term success. However, its static nature limits its effectiveness in dynamic markets where adaptability is crucial. Dynamic Capabilities address this gap by focusing on a firm's ability to sense opportunities and threats, seize opportunities, and transform resources in response to external changes. This paper proposes an integrated framework that leverages VRIN resources while enhancing the firm's adaptability through Dynamic Capabilities. The framework offers a strategic guide for firms to balance the protection and exploitation of core resources with the development of capabilities necessary for continuous innovation and flexibility. Empirical applications suggest that this dual approach is particularly effective in industries characterized by high volatility and technological disruption. By integrating RBV and DCs, firms can better navigate uncertainty, ensuring sustained competitive advantage in a rapidly changing marketplace. KEYWORDS: Resource-Based View, Dynamic Capabilities, Competitive Advantage, Strategic Management, VRIN Resources, Adaptability.

A central problem in strategic management is how the inference ‘sustainable competitive advantage generates sustainable superior performance’ can be put into practice. In this article we develop a theoretical framework to understand the causal relationships among (1) sustainable competitive advantage, (2) configuration, (3) dynamic capability, and (4) sustainable superior performance. We propose that a firm's competitive advantage, resource bundle configuration, and dynamic learning capability cannot be comprehended by outsiders. Its operational performance, however, can be captured by financial indicators. We promote an inductive Bayesian interpretation of the sustainable competitive advantage proposition. From this viewpoint, the presence or absence of competitive advantage may be reflected in the causal relationship between resource configuration, dynamic capability, and observable financial performance. We apply this theoretical framework to an example drawn from the global semiconductor industry, an area in which resource configuration and dynamic capability are essential to performance. The paper concludes with a summary of the proposed model and suggestions for future theoretical development of strategic management. Copyright © 2009 John Wiley & Sons, Ltd.

In response to growing sustainability imperatives and environmental uncertainties, startups are increasingly expected to embed green values into their strategic and operational processes. However, their limited resources, organisational learning base, and process maturity often hinder their capacity to achieve sustainable competitive advantage. Drawing on an integrative review of the literature, the study conceptually examines how AI-driven knowledge management (KM) contributes to the sustainability of startups. Based on the Resource-Based View and Dynamic Capability Theory, this paper identifies and integrates six core constructs: Green Entrepreneurial Orientation (GEO), Green Knowledge Management (GKM), Dynamic Capabilities (DCs), Big Data Analytics and Artificial Intelligence (BDA-AI), and Sustainable Competitive Advantage (SCA). These constructs are synthesised into a conceptual model that explains the mechanisms through which green strategic intent and knowledge practices interact with digital enablers to foster sustainable advantage. The proposed model highlights three key pathways. First, GEO is positioned as a strategic antecedent that directly enhances GKM and SCA, indicating that a green entrepreneurial mindset can drive sustainability-oriented knowledge processes and competitive outcomes. Second, GKM enhances DCs, which in turn contributes to SCA, with DCs mediating the GKM-SCA relationship, reinforcing the role of dynamic adaptability in transforming knowledge into sustainable advantage. Third, BDA-AI is proposed as a moderator that strengthens the effects of GKM on DCs and DCs on SCA by accelerating sensing, learning, and reconfiguration processes, particularly in uncertain and resource-constrained environments. Building upon these interrelationships, eight hypotheses are developed to construct the conceptual framework and provide a basis for future empirical validation. This study advances the theoretical discourse on sustainable entrepreneurship by integrating sustainability, KM, and AI perspectives. It offers practical insights for startups and policymakers seeking to leverage digital technologies for long-term viability. While conceptual, the proposed model provides a foundation for empirical validation and future refinements to account for contextual dynamics such as industry-specific challenges and policy influences.

This research has examined the impact of digital transformation (DT) on the sustainable competitive advantage and performance of service-based firms in Harare, Zimbabwe’s central commercial hub. Grounded in the resource-based view (RBV) and dynamic capabilities (DCT) theoretical bases, the study used structural equation modeling (SEM-AMOS) and a cross-sectional design to assess the relationship between information and communication technologies (ICT) digital resources and capabilities and sustainable competitive advantage in the established service sector. Survey instruments were distributed to 800 service-based managers, with 782 responses received. The findings underscore the critical role of financial, operational, and digital resources in supporting core business capabilities and driving company success. The research demonstrates how digital transformation support for vital organizational competencies can enhance value creation and firm performance. An essential contribution is that sustainable competitive advantage agility mediates the link between digital transformation and firm performance. This highlights the pivotal influence of 'dynamic managerial capabilities ', a term we define as the ability of managers to adapt and innovate in response to changing market conditions and technological advancements, as managers must strategically implement digital initiatives to gain a long-term competitive edge. Overall, the study provides valuable practical insights into the significance of digital transformation for achieving sustainable competitive advantage in service-based firms. The results emphasize the need for managers to thoughtfully adopt intelligent digital tools and make decisions that leverage the firm's digital resources and capabilities. This research significantly advances academic understanding of the digital transformation-competitive advantage-performance relationship in the context of Zimbabwe, with important implications for theory and practice.

PurposeThis study aims to investigate how a firm’s sustainable competitive advantage is influenced by the combination of entrepreneurial ecological orientation, digital transformation and dynamic capabilities.Design/methodology/approachBased on the qualitative comparative analysis method, this study systematically explores the significant key conditions and configuration effects that affect the growth of sustainable competitive advantage. This study uncovers the causal relationship and complex mechanisms underlying the sustainable and unsustainable competitive advantages for new ventures, by examining the grouping effects of the above three factors – entrepreneurial ecological orientation, digital transformation and dynamic capabilities on those advantages.FindingsA single factor fails to constitute a necessary condition for sustainable competitive advantage. Three types of configurations are beneficial to sustainable competitive advantage, namely, flexible and responsive type, dynamically adjusted type and type of opportunity resource integration, whereas four types of configurations lead to the unsustainable competitive advantage of new ventures, namely, type of organizational rigidity, informal entrepreneurial type, information-blocking type and technology-deficient type.Originality/valueAccording to this study, adopting an entrepreneurial ecological orientation is a novel strategic move. This study offers an extensive review of three aspects of entrepreneurial ecological orientation, dynamic capacities and digital transformation and their mutually synergistic cascading effects on the sustainable competitive advantage of new ventures. This study investigates how three dimensions interact to achieve sustainable competitive advantage for firms, ultimately contributing to the study of sustainable competitive advantage strategies from an entrepreneurial ecosystem perspective.

Achieving sustained competitive advantage in the current business landscape has become an important challenge for both the service and manufacturing sectors. Based on the thematic analysis of the empirical data from expert interviews of 46 professionals from Australia and Pakistan, this study puts forward a framework to achieve sustained competitive advantage. The research employs a dynamic capability (DC) theory lens and creates a foundation for the “sustainable dynamic capabilities” concept for future research. The findings affirm that (1) sustainable dynamic capabilities lead to sustained competitive advantage, (2) sustainable dynamic capabilities lead to corporate sustainability, (3) corporate sustainability leads to sustainable dynamic capabilities, and (4) corporate sustainability acts as a mediator between sustainable dynamic capabilities and sustained competitive advantage. By utilising the proposed framework, practitioners can clearly define their strategies to achieve competitive advantage by implementing sustainability practices. The findings of this research clearly pinpoint the interrelationship between sustainability practices and sustained competitive advantage, and sustainability should be taken as a dynamic capability itself, opening up new avenues for future research.

Objective To explore the dynamism of the environment and the impact on service company competitive advantage from a customer relationship management (CRM) dynamic capabilities (DCs) perspective. This work also aims to develop a multidimensional conceptualisation of the dynamic environment and propose a theoretical model for analysing the impact of the environment's dynamism on the relationship between dynamic CRM capabilities and competitive advantage. Research Design and Methods Based on the resource-based view (RBV) and dynamic capabilities view (DCV), the method of critical literature analysis was used. Literature sources written in the last two decades were analysed. Findings The result of the literature research became the development of a new conceptualisation of the dynamic environment and its three relevant dimensions, as well as the proposal of constructs in the theoretical model, where the dynamism of the environment plays a moderating role in the relationship between dynamic CRM capabilities and competitive advantage. Implications/Recommendations As implications for further research, empirical verification of the created model and checking the relationship between the constructs should be indicated. Contribution The findings extend the application of RBV and DCV in marketing knowledge. In addition, the model and this study's conclusions direct service firms to develop CRM capabilities that can enhance the company, thereby enabling the building of competitive advantage in a dynamic environment.

Purpose The study aims to examine the impact of green innovation on competitive advantage, focusing on the mediating role of green corporate image. Design/methodology/approach The simple random sampling technique was used, and a self-administered questionnaire was distributed among 323 managers in green apparel organizations in Sri Lanka. The data was analyzed using structural equation modeling techniques. Findings The findings revealed that green innovation significantly enhances competitive advantage in the Sri Lankan green apparel sector. Furthermore, it demonstrated that green innovation can improve a company’s green corporate image, which has a significant and positive impact on competitive advantage. Finally, the results confirmed that the green corporate image partially mediates the impact of green innovation on competitive advantage. Research limitations/implications The theoretical contribution can be discussed from three perspectives. It reinforces the resource-based view (RBV) by offering empirical evidence, extends RBV by highlighting the importance of green corporate image in gaining competitive advantage and integrates RBV with stakeholder theory. Furthermore, this study contributes to green marketing literature with empirical evidence. Practical implications Practitioners should recognize that green innovation is a strategic asset that can be leveraged as a branding strategy. A strong green image should be cultivated through transparent sustainability reporting, environmental certifications and eco-labeling. Originality/value To the best of authors’ knowledge, this research is original in its combined examination of three constructs within a single framework. Furthermore, it addresses this notable gap in existing. It gives a unique theoretical contribution by integrating the RBV and stakeholder theory. In addition, it offers original insights into how green innovation practices contribute to competitive outcomes in an emerging market.

PurposeThis study aims to use a social media management framework and strategic orientation framework to explore how small restaurants manage social media.Design/methodology/approachThe authors content-analyzed social media activity and interviews with 14 managers of social media in small independent restaurants in the northeast region of the USA that employed fewer than 20 employees.FindingsThe results of the study show that most small restaurants can be classified as anarchic, hierarchical and conservative defenders, and that they mainly focus on promotional activities on social media. The majority use social media also to drive traffic to a restaurant and, thus, act as calculative pragmatists. Very few use social media strategically or creatively in any of the social media management stages, and very few monitor or use social media information to improve their operations.Research limitations/implicationsThis study shows that the adopted theoretical framework in this study for social media management helps analyze social media operations in small restaurants, points to the strategic orientations applied in small restaurants, shows the intricacies of each stage and helps show what small restaurants do well and how they can improve. Future research may use larger samples, investigate frameworks particularly relevant to small restaurants, such as the resource-based view (RBV) framework, and may focus on creative and diverse strategic approaches toward social media management for small establishments.Practical implicationsAs customers continue shifting to social media and review sites, more restaurants may want to invest in developing more creative approaches toward social media and do it in more structured, integrated and continuous ways. The study describes a process they may want to follow and specific tactics that could be implemented to use social media more strategically in all stages of social media management.Social implicationsNot only are small business establishments the backbone of the restaurant industry, but they also appeal to customers more than large chains. This study shows how these small businesses can utilize social media to attract more customers, engage them, learn about them and their competitive environment to market and improve their operations.Originality/valueThe authors focus on the supplier side of social media for restaurants, a perspective lacking in the literature, and specifically small restaurants that receive less attention in prior research. Few studies exist that explore how social media is incorporated in all stages of social media management. The study points to the unique challenges that small restaurants experience in the process of using social media for marketing, monitoring and using social media to improve their operations. The study uses a relatively large sample of qualitative interviews conducted with managers of small restaurants and a content analysis of their actual social media activity.