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Resource orchestration and firm competitive performance: The role of knowledge absorptive capacity in converting business analytics into strategic competitive advantage

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  • Abbas, Jawad

Abstract

The contemporary business landscape, marked by unprecedented dynamics, warrants organizations to constantly adapt and innovate to stay ahead of the competition. In this situation, developing capabilities to harness data effectively has emerged as a vital factor in firms' success. Dynamic firms are keen to build business analytical capabilities (BAC) to capitalize on vast data to attain operational excellence across all sectors. However, how such capabilities contribute to organizational decision quality and competitive performance is yet to be understood. This study uncovers said relationship using principles of resource orchestration theory, highlights the mediating role of knowledge absorptive capacity (KAC), and explains how resource orchestration capabilities (ROC) moderate the relationship between decision quality and competitive performance. The empirical data indicate that firms with robust BAC have better KAC and that absorptive capacity ultimately leads to improved decision quality and competitive performance. Moreover, robust ROC bolsters the relationship between decision quality and firms' competitive performance. Overall, results imply that firms must go beyond typical business capabilities. They must cultivate an atmosphere to develop analytical capabilities that enable organizations to detect essential industry trends and strengthen their ROC, thereby amplifying the positive impact of their decision quality on competitive performance.

Suggested Citation

  • Abbas, Jawad, 2026. "Resource orchestration and firm competitive performance: The role of knowledge absorptive capacity in converting business analytics into strategic competitive advantage," Technological Forecasting and Social Change, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:tefoso:v:222:y:2026:i:c:s0040162525004342
    DOI: 10.1016/j.techfore.2025.124403
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