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Renewing the resource base in line with the dynamic capabilities view: a key to sustained competitive advantage in the IT industry

Author

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  • Breznik, Lidija
  • Lahovnik, Matej

Abstract

The purpose of this paper is to indicate that firms which renew their resource base in line with the dynamic capabilities view can generate and sustain a competitive advantage and thus the related firm performance. In order to investigate the relationships involved, in-depth interviews were conducted in six representative IT firms. The results suggest that firms with a stronger commitment to deploying dynamic capabilities are more successful and hold the potential for a sustained competitive advantage. We also found that innovation capability, managerial capability and human resource capability are the most relevant capabilities that allow firms to successfully adapt to a changing environment and the highly demanding IT market.

Suggested Citation

  • Breznik, Lidija & Lahovnik, Matej, 2014. "Renewing the resource base in line with the dynamic capabilities view: a key to sustained competitive advantage in the IT industry," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 19(4), pages 453-485.
    • Handle: RePEc:rai:joeems:jeems-2014-04-breznik
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    Citations

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    Cited by:

    1. Atzmon, Morane Batya & Vanderstraeten, Johanna & Albers, Sascha, 2022. "Small-firm growth-enabling capabilities: A framework for young technology-based firms," Technovation, Elsevier, vol. 117(C).
    2. Mohamed Mansouri & Cheklekbire Malainine & Hayat Souti & Ikram Cadimi, 2022. "Dynamic capabilities, competitiveness and performance of small and medium-sized enterprises: a systematic literature review [Capacités dynamiques, compétitivité et performance des petites et moyenn," Post-Print hal-03794567, HAL.
    3. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    4. Dinuka B. Herath & Shelley Harrington, 2023. "Saying yes to mess: disorganization as an antecedent to dynamic capabilities," Review of Managerial Science, Springer, vol. 17(5), pages 1539-1558, July.

    More about this item

    Keywords

    dynamic capabilities; competitive advantage; information technology (IT) industry; case study;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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