Manager’s Entrepreneurial Dynamic Capabilities as source of Sustained Competitive Advantage for Small and Medium Enterprises – Evidence from Emerging Economies in South Asia

Abstract

The ultimate purpose that entrepreneurs of small and medium enterprises should endeavor for is to achieve a sustained competitive advantage over their competitors. The objective of this study was to investigate the significance of, and emphasis put on dynamic, valuable, rare, inimitable, heterogenous, and non-substitutable managerial capabilities in their links with sustained competitive advantage for the firm. Overall, the findings demonstrated strong, substantial, and positive effects of dynamic capabilities on sustained competitive advantage, providing support, evidence, and substantiation to the resource-based view (RBV) of the firm. The standard multiple linear regression model accounted for 87.3 percent of the variation in sustained competitive advantage. In essence, the research findings not only extended to the literature on the correlation between dynamic capabilities and competitive advantage, but also presented critical information to both policymakers and experts on the subject.