Effect of Human Capital and Dynamic Capabilities on Competitive Advantage: Mediating Analysis

Abstract

<jats:p>Aim: A better understanding of farm-level competitiveness of agribusiness sector provides the necessary framework for agribusiness farms to compete at domestic and global markets. This study aims to determine the relationships of human capital, dynamic capabilities and competitive advantage in the minor export crop sector in Sri Lanka.&#x0D; Study Design: Minor export crop farm owners involved in the commercial cultivation of cinnamon, pepper and clove in Sri Lanka were surveyed using a personally-administered, structured questionnaire. The regression-based path analysis was used to test the model.&#x0D; Results: The results indicate significant relationships between human capital and capabilities of learning and relationship building as well as between human capital and competitive advantage.&#x0D; Implications: The findings provide useful insights where an understanding of the link between human capital, as a resource, in dynamic capabilities and competitive advantage which allows human capital to be configured appropriately and deployed effectively and efficiently based on dynamic capabilities of the minor export crop farms to achieve competitive advantage.&#x0D; Original: The study has extended our understanding of the importance of human capital for in relation to dynamic capabilities.</jats:p>

The Impact of Human Capital and Knowledge Creation on Sustaining Competitive Advantage and Innovation in Medium-Sized Companies in Bali

“…The emergence of the RBV is considered a new perspective in strategic management that places more emphasis on the superiority of companies' internal resources as their competitive advantages [4,6,14,23]. The resources act as a unique source of competitive advantages [5].…”

“…Human capital is the owner of scarce and imperfectly imitable knowledge resources [12,61]. Therefore, human capital's contribution significantly impacts competitive advantages [14]. Furthermore, it is demonstrated that human capital can stimulate innovation, contribute to knowledge creation, and sustain a company's competitive advantage [62].…”

“…Even though attempts to demonstrate the significance of developing a competitive advantage have received a lot of criticism, the competitive advantage is still considered highly relevant to enhancing companies' competitiveness [12][13][14]. Companies can build a competitive advantage by engaging in a variety of innovative activities [3].…”

The difference between exporter and non-exporter knowledge-based firms: the case of Iranian firms in the chemical industry

“…As firms enter the international markets, the ability to compete becomes vital. Hence they need capabilities in combination with resources to provide a competitive advantage and meet the needs of foreign customers better than their competitors (Chen et al , 2016; Sachitra, 2020). Therefore, the resource-based view also provides a theoretical model to examine the relationship between resources, capabilities and the competitive advantage of firms and hence explains their international behaviour.…”

“…Regarding firms’ international situation, competitiveness is vital to entering international markets. According to the resource-based view (RBV), firms need different capabilities and resources to provide a sustainable competitive advantage and meet the needs of foreign customers better than competitors (Chen et al , 2016; Sachitra, 2020). Therefore, the analysis of capabilities and their promotion in the producers of technological products is of great importance for internationalization.…”