Strategic Capabilities and Competitive Advantage in Enhancing Organizational Performance in the Modern Economic Era
DOI:
https://doi.org/10.54518/eir.2.2.2024.1279Keywords:
Competitive Advantage, Digital Capability, Innovation Capability, Organizational Performance, Strategic CapabilitiesAbstract
Changing economic environments that are increasingly dynamic require organizations to develop various strategic capabilities to maintain competitiveness and improve performance. This research aims to analyze the role of innovation capabilities, digital capabilities, and entrepreneurial orientation in forming competitive advantages and improving organizational performance in the modern economic era. The research uses a literature study method by examining various scientific articles, national and international journals, and relevant academic publications in the last five years. The analysis was carried out through the identification, grouping, and synthesis of previous research results related to the relationship between the variables studied. The results of the study show that innovation capabilities, digital capabilities, and entrepreneurial orientation are strategic capabilities that contribute positively to the formation of competitive advantages. Competitive advantage further acts as a mechanism that strengthens the influence of these three variables on organizational performance. The findings of the study also show that the integration of innovation, digitalization, and entrepreneurial orientation is able to improve the organization's ability to adapt to changes in the business environment. Thus, the development of strategic capabilities is an important factor in supporting the sustainability and success of the organization in the modern economic era.
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