Leveraging Intellectual Capital through Dynamic Capabilities for Sustainable Competitive Advantage

Laras Angelia Nirwana Sari; Liya Setiawati

doi:10.69725/jebi.v2i3.314

Authors

Laras Angelia Nirwana Sari Department of Accounting, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, West Java, Indonesia
Liya Setiawati Department of Management, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, West Java, Indonesia

DOI:

https://doi.org/10.69725/jebi.v2i3.314

Keywords:

Intellectual capital, Dynamic capabilities, Competitive Advantage, Sustainability

Abstract

Purpose: The purpose of this study is to identify the impact on long-run competitive advantage due to intellectual capital and the direct and moderating effect of dynamic capabilities in an integrated strategic management model.

Method: The paper is quantitative using secondary panel data and adopts partial least squares structural equation modeling to test the posited relationships. Intellectual capital is proxied by value-based measures, long-term competitive advantage is represented in by financial and market based performance measures, and dynamic capabilities are operationalized using investment intensity in R&D-oriented innovation. Measurement model confirmation, structural model evaluation and moderation testing are the highlights of empirical analyses.

Findings: The findings indicate that intellectual capital has a positive & significant effect on long-term competitive advantage. Dynamic capabilities also exhibit a significant direct effect on the long-term competitive advantage. Furthermore, dynamic capabilities positively moderate the relationship between IC and firm-based long-term competitive advantage, suggesting that firms with higher ability to sense and seize opportunities are more adept at transforming resource-based knowledge into competitive gains.

Novelty: This research offers fresh empirical evidence by incorporating intellectual capital and dynamic capabilities into an integrated model of long-term competitive advantage, and emphasizing the contingent influence of dynamic capabilities to enhance strategic value of intellectual capital.

Implications: The results have significant implications for strategists by highlighting the necessity for companies to develop both intellectual capital and dynamic capabilities altogether in order to secure sustainable competitive advantage within dynamic environments.

Downloads

Download data is not yet available.

Author Biographies

Laras Angelia Nirwana Sari, Department of Accounting, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, West Java, Indonesia

Laras Angelia Nirwana Sari, S.E., M.Ak., Ak is a lecturer in the Department of Accounting, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, Indonesia. She holds a Bachelor’s degree in Accounting and a Master’s degree in Accounting, and is a certified professional accountant. Her research interests focus on intellectual capital, financial performance, strategic accounting, sustainability, and data-driven business analysis. She has published scholarly works in national and international journals and actively engages in research related to corporate value creation and strategic resource management.
Liya Setiawati, Department of Management, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, West Java, Indonesia

Liya Setiawati, S.Sy., M.M. is a lecturer in the Department of Management, Faculty of Economics and Business, STIE Gema Widya Bangsa, Bandung, Indonesia. She earned her undergraduate degree in Sharia Economics and a Master’s degree in Management. Her research interests include strategic management, dynamic capabilities, innovation management, and organizational performance. She has contributed to academic publications and focuses on integrating strategic theory with empirical analysis to support sustainable competitive advantage in organizations.

References

Abdallah, A. S., Amin, H. M. G., Abdelghany, M., & Elamer, A. A. (2024). Assessing competitiveness through intellectual capital research: a systematic literature review and agenda for future research. Competitiveness Review, 35(1), 190–220. https://doi.org/10.1108/CR-10-2023-0262 DOI: https://doi.org/10.1108/CR-10-2023-0262

Ahmad, F. (2025). The Relationship Between Intellectual Capital, Financial Stability, Firm Performance, Market Value, and Bankruptcy Risk: Empirical Evidence from Pakistan. Journal of the Knowledge Economy, 16(1), 1347–1395. https://doi.org/10.1007/s13132-024-02055-z DOI: https://doi.org/10.1007/s13132-024-02055-z

Ahmad, T., & Krishna, V. (2025). Measuring the impact of intellectual capital on entrepreneurial performance: a holistic approach. Journal of Intellectual Capital, 1–20. https://doi.org/10.1108/JIC-09-2024-0264 DOI: https://doi.org/10.1108/JIC-09-2024-0264

Aisha Begum, M., & Swamy, T. N. V. R. L. (2024). Harnessing Green Intellectual Capital for Sustainable Development: The Dynamic Capabilities Approach to Environmental Policy. Business Strategy & Development, 7(4), e70041. https://doi.org/https://doi.org/10.1002/bsd2.70041 DOI: https://doi.org/10.1002/bsd2.70041

Al-Zubaidi, R., Ateeq, A., Abdulsamad, A., Ibrahim, S. B., Ahmed, H. R. H. A., & Milhem, M. (2025). Market Orientation and SMEs Performance: Unraveling the Mediating Effects of Innovation Capability Amidst Environmental Uncertainty BT - Tech Fusion in Business and Society : Harnessing Big Data, IoT, and Sustainability in Business: Volume 2 (R. K. Hamdan (ed.); pp. 859–872). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-84636-6_77 DOI: https://doi.org/10.1007/978-3-031-84636-6_77

Bala, A. J., Hassan, A., & Kibiya, I. U. (2025). Does Profitability Moderate the Effect of Intellectual Innovation on Firm Value in the Technology-Driven Sectors of Emerging Economies? Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-025-02812-8 DOI: https://doi.org/10.1007/s13132-025-02812-8

Barney, J. B. (2018). Why resource-based theory’s model of profit appropriation must incorporate a stakeholder perspective. Strategic Management Journal, 39(13), 3305–3325. https://doi.org/https://doi.org/10.1002/smj.2949 DOI: https://doi.org/10.1002/smj.2949

Blankespoor, E. (n.d.). Disclosure Processing Costs, Investors’ Information Choice, and Equity Market Outcomes: A Review.

Cavusgil, S. T., & Deligonul, S. Z. (2025). Dynamic capabilities framework and its transformative contributions. Journal of International Business Studies, 56(1), 33–42. https://doi.org/10.1057/s41267-024-00758-8 DOI: https://doi.org/10.1057/s41267-024-00758-8

Deng, Q., & Karia, N. (2025). How ESG Performance Promotes Organizational Resilience: The Role of Ambidextrous Innovation Capability and Digitalization. Business Strategy & Development, 8(1), e70079. https://doi.org/https://doi.org/10.1002/bsd2.70079 DOI: https://doi.org/10.1002/bsd2.70079

Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. https://doi.org/https://doi.org/10.1002/smj.4250171110 DOI: https://doi.org/10.1002/smj.4250171110

Helfat, C. E., & Maritan, C. A. (2023). Resource Allocation Capability and Routines in Multibusiness Firms. Organization Science, 35(3), 1110–1130. https://doi.org/10.1287/orsc.2022.16778 DOI: https://doi.org/10.1287/orsc.2022.16778

Jordão, R. V. D., Avelar, E. A., & Lúcio, M. A. (2025). The role of intellectual capital in the sustainable value creation of Brazilian listed companies. Journal of Accounting & Organizational Change, 21(6), 964–991. https://doi.org/10.1108/JAOC-07-2024-0220 DOI: https://doi.org/10.1108/JAOC-07-2024-0220

Larabi, C. (2025). Linking Innovation Capability, Strategic Orientation, and Strategic Renewal to Sustainable Performance: A Dynamic Capabilities Perspective in Saudi Small and Medium Enterprises. Business Strategy and the Environment, n/a(n/a). https://doi.org/https://doi.org/10.1002/bse.70229 DOI: https://doi.org/10.1002/bse.70229

Malik, F. S., & Terzidis, O. (2025). Thriving in turbulence: resilience and strategic adaptation in global business. Review of Managerial Science. https://doi.org/10.1007/s11846-025-00940-8 DOI: https://doi.org/10.1007/s11846-025-00940-8

Mata, M. N., Moleiro Martins, J., & Inácio, P. L. (2024). Collaborative innovation, strategic agility, & absorptive capacity adoption in SMEs: the moderating effects of customer knowledge management capability. Journal of Knowledge Management, 28(4), 1116–1140. https://doi.org/10.1108/JKM-10-2022-0803 DOI: https://doi.org/10.1108/JKM-10-2022-0803

Naseer, M. M., Hunjra, A. I., Mattoussi, F., & Amin, M. N. (2025). Unlocking the effect of corporate environmental practices in driving firms’ financial performance. Environmental Economics and Policy Studies, 27(4), 529–552. https://doi.org/10.1007/s10018-023-00385-x DOI: https://doi.org/10.1007/s10018-023-00385-x

Qader, G., Rehman, J., Shamsi, M. I., & Abro, S. (2025). Examining the Impact of Dynamic Capabilities and Industry4.0 Technologies in Pharmaceutical Manufacturing Firms: A Sustainable Supply Chain Performance Framework. Business Strategy & Development, 8(3), e70205. https://doi.org/https://doi.org/10.1002/bsd2.70205 DOI: https://doi.org/10.1002/bsd2.70205

Robins, J., & Wiersema, M. F. (1995). A resource-based approach to the multibusiness firm: Empirical analysis of portfolio interrelationships and corporate financial performance. Strategic Management Journal, 16(4), 277–299. https://doi.org/https://doi.org/10.1002/smj.4250160403 DOI: https://doi.org/10.1002/smj.4250160403

Sadenova, A., Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., Saltanat, S., & Kozlova, M. V. (2025). Green intellectual capital and green competitive advantage: examining the role of green technological innovation and environmental management accounting. VINE Journal of Information and Knowledge Management Systems, 1–24. https://doi.org/10.1108/VJIKMS-02-2025-0050 DOI: https://doi.org/10.1108/VJIKMS-02-2025-0050

Schifilliti, V., Patti, A., & Centorrino, G. (2025). Grease the Wheel! An Empirical Study on Environmental, Social, and Governance (ESG) and SMEs’ Performance in the ICT Industry. Corporate Social Responsibility and Environmental Management, n/a(n/a). https://doi.org/https://doi.org/10.1002/csr.70112 DOI: https://doi.org/10.1002/csr.70112

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/https://doi.org/10.1016/j.lrp.2017.06.007 DOI: https://doi.org/10.1016/j.lrp.2017.06.007

Teece, D. J. (2019). A capability theory of the firm: an economics and (Strategic) management perspective. New Zealand Economic Papers, 53(1), 1–43. https://doi.org/10.1080/00779954.2017.1371208 DOI: https://doi.org/10.1080/00779954.2017.1371208

Tonelli, A., Giordino, D., & Erben, M. (2025). Intellectual capital disclosure on institutional investors’ ownership concentration: empirical evidence from the European capital market. Journal of Intellectual Capital, 26(4), 851–873. https://doi.org/10.1108/JIC-08-2024-0254 DOI: https://doi.org/10.1108/JIC-08-2024-0254

Ulrich, D., & Wiersema, M. F. (1989). Gaining Strategic and Organizational Capability in a Turbulent Business Environment. Academy of Management Perspectives, 3(2), 115–122. https://doi.org/10.5465/ame.1989.4274761 DOI: https://doi.org/10.5465/ame.1989.4274761

Vaghfi, S., Kamranrad, S., & Keshvari, F. (2024). The impact of innovation and differentiation strategy on financial performance with emphasis on the role of risk management and intellectual capital. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-04-2023-0131 DOI: https://doi.org/10.1108/JIABR-04-2023-0131

Wu, Y., Alsagr, N., Aman, A., & Suhail, A. (2025). Accelerating the Green Shift: How Green Digital Transformation Capabilities Foster Sustainable Innovation Performance Through Circular Economy Readiness and Business Innovation Environment. Corporate Social Responsibility and Environmental Management, n/a(n/a). https://doi.org/https://doi.org/10.1002/csr.70340 DOI: https://doi.org/10.1002/csr.70340