Critical Determinants of Sustainable Competitive Advantage: Insights from the Construction Sector

Abstract

The construction sector operates under conditions of high capital intensity, project complexity, cost uncertainty, fragmented supply chains, and increasing pressure to improve efficiency, sustainability, and long-term competitiveness. Although prior research has emphasized the importance of organizational resources and knowledge-based capabilities for competitive advantage, fewer empirical studies have examined how internal capacities, intellectual capital, and knowledge sharing jointly explain sustainable competitive advantage in construction companies. Drawing on the resource-based view, the knowledge-based view, and the dynamic capabilities perspective, this study examines the effects of marketing capacity, financial capacity, innovative capacity, management capacity, human capacity, human capital, structural capital, relational capital, and knowledge sharing on sustainable competitive advantage in the construction sector. Survey data were collected from 306 employees working in construction companies in the Republic of Serbia and analyzed using confirmatory factor analysis and covariance-based structural equation modeling. The measurement model demonstrated satisfactory reliability, convergent validity, and discriminant validity. The structural results indicate that financial capacity is the only significant internal capacity predicting sustainable competitive advantage, while relational capital is the only significant dimension of intellectual capital. Marketing capacity, innovative capacity, management capacity, human capacity, human capital, structural capital, and knowledge sharing did not show significant direct effects. The study contributes to research on sustainable competitive advantage by showing that, in construction companies, competitiveness is most strongly associated with financial robustness and stakeholder-based relational strength. For managers, the findings highlight the importance of strengthening liquidity, investment capacity, risk absorption, and long-term relationships with clients, suppliers, subcontractors, and institutional stakeholders.