Capacity building for sustained competitive advantage: a conceptual framework

Abstract

Purpose – Capacity building is a crucial antecedent for socio-economic development. However, an enhanced capacity that is difficult to develop could quickly be eroded, because of rapid changes in competitive forces in industries and markets. Therefore, this paper intends to analyse the extant strategic management and relationship marketing (RM) literature that deal with competition. Eventually, the purpose of this paper is to develop an alternative route for capacity building process that could sustain competitive advantage in a market or industry, which encounters rapid changes in business competition. Design/methodology/approach – An inductive constructivist approach is followed to support arguments, in order to develop a synthesis from the relevant literature to reinforce the current understandings on capacity building and sustained competitive advantage. Findings – An influence of RM on strategic organisational dynamic capabilities (DCs) is recognised, which appears as significant to sustain DCs and subsequent competitive advantage. Based on this influence, this paper proposes a conceptual framework of capacity building that could survive through the “valuable, rare, inimitability and non-substitutability” test, which is fundamental to sustain competitive advantage. Some empirical insights are developed, in support of this conceptual framework. Practical implications – For research and practice, these insights will be useful to focus on specific attributes in capacity building to sustain the enhanced capacity’s competitive advantage over time, across industries and markets. Social implications – Similarly, the insights will be instrumental to sustain the benefit of capacity building to underpin socio-economic progress. Originality/value – The paper proposes a much needed initial conceptual framework for capacity building to sustain competitive advantage of a hard-earned capacity for socio-economic development.