Interrelation between Sustainable Dynamic Capabilities, Corporate Sustainability, and Sustained Competitive Advantage

Abstract

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.