The impact of dynamic capabilities on sustainable competitive advantage in digital platform companies
Abstract
Objective: The objective of the article is to assess the influence of dynamic capabilities (DC) – comprising integration, sensing, seizing, and reconfiguring – on sustainable competitive advantage in digital platform companies during the accelerated digital transformation period of 2020-2024. We investigated how these capabilities interact and evolve to generate enduring competitive advantages in rapidly changing digital markets.
Research Design & Methods: We utilised a mixed-method approach that integrated longitudinal panel data analysis with qualitative findings. We gathered data from 100 international digital platform firms over a five-year period (2020-2024), employing financial records, patent information, innovation measures, executive surveys, and comprehensive interviews. We employed a dynamic panel model to estimate the effects of capabilities on competitive advantage and to analyse their dynamic relationship over time, supplemented by qualitative content analysis.
Findings: The findings indicate that integration and seizing capabilities exert the most significant direct influence on sustainable competitive advantage, whilst sensing and reconfiguring capabilities serve as critical moderating variables that enhance the primary relationships studied. The study revealed synergistic benefits among capabilities, indicating that combining robust sensing and swift reconfiguration markedly improves competitive posture. Companies exhibiting balanced advancement across all four capabilities displayed a 37% increase in the sustainability of their competitive advantage.
Implications & Recommendations: Digital platform companies should prioritise developing integrated capability frameworks rather than focusing on individual competencies. The findings suggest a dynamic capability development sequence, starting with sensing and integration, followed by seizing and reconfiguration capabilities. Organisations should establish dedicated capability-orchestration teams and regular capability-assessment mechanisms.
Contribution & Value Added: This study provides the first longitudinal, large-scale panel data analysis of the dynamic capabilities framework applied specifically to digital platforms during accelerated transformation. The research introduces a novel measurement framework for capability interaction and delivers robust empirical evidence for the synergistic role of capability orchestration in sustaining competitive advantages in digital markets.
Keywords
dynamic capabilities, digital transformation, panel data analysis, integration capabilities, digital platform
Author Biography
Arif Sugiono
Lecturer in Business Administration, Lampung University. His research interests include strategic management, creative industry and business ecosystems.
Supri Yanto
Lecturer in the Department of Economics and Business at Politeknik Negeri Lampung. His research interests include finance, capital market investments, and strategic management.
Putri Irmala Sari
Lecturer in the Department of Economics and Business at Politeknik Negeri Lampung. His research interests include financial management, strategic management.
References
- Adhiatma, A., Fachrunnisa, O., Nurhidayati, & Rahayu, T. (2023). Creating digital ecosystem for small and medium enterprises: the role of dynamic capability, agile leadership and change readiness. Journal of Science and Technology Policy Management, 14(5), 941-959. https://doi.org/10.1108/JSTPM-12-2020-0171
- Alghamdi, O., & Agag, G. (2024). Journal of Retailing and Consumer Services Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence. Journal of Retailing and Consumer Services, 76(August 2023), 103547. https://doi.org/10.1016/j.jretconser.2023.103547
- Bally, F., Grandazzi, A., Picard, H., & Daudigeos, T. (2024). Digital and Disembedded? Questioning the Territorial Embeddedness of Local Digital Platforms. Journal of Business Ethics, 0123456789. https://doi.org/10.1007/s10551-024-05886-7
- Chai, S. H., Nicholson, B., Scapens, R. W., & Yang, C. L. (2023). Digital platforms, surveillance and processes of demoralization. Journal of Information Technology, 39(3), 568-586. https://doi.org/10.1177/02683962231208215
- Chatterjee, S., Chaudhuri, R., Vrontis, D., & Chaudhuri, S. (2022). The Impact of Dynamic Capability on Business Sustainability of Organizations. FIIB Business Review, 11(4), 455-467. https://doi.org/10.1177/23197145221107432
- Christodoulou, I., & Chovancov, J. (2024). Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case. https://doi.org/10.1108/JTS-03-2024-0012
- Cillo, P., Verona, G., & Vicari, S. (2007). The interlink between resources and capabilities: Towards a theoretical frame for the development of dynamic capabilities. International Journal of Learning and Intellectual Capital, 4(1-2), 111-131. https://doi.org/10.1504/IJLIC.2007.013826
- Da Rocha, A., Neves da Fonseca, L., & Kogut, C. S. (2024). Small firm internationalization using digital platforms: an assessment and future research directions. International Marketing Review, 41(5), 981-1015. https://doi.org/10.1108/IMR-10-2023-0280
- Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they?. Strategic Management Journal, 21(10-11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
- Eloranta, V., & Turunen, T. (2015). Seeking competitive advantage with service infusion: A systematic literature review. Journal of Service Management, 26(3), 394-425. https://doi.org/10.1108/JOSM-12-2013-0359
- Fazal, S. A., Mamun, A. Al, Ahmad, G. Bin, & Masud, M. M. (2022). Entrepreneurs’ Competencies and Competitive Advantages: A Study on Malaysian Microenterprises. Global Business Review, 23(1), 61-74. https://doi.org/10.1177/0972150919854937
- Fosso Wamba, S., Queiroz, M. M., Pappas, I. O., & Sullivan, Y. (2024). Artificial Intelligence Capability and Firm Performance: A Sustainable Development Perspective by the Mediating Role of Data-Driven Culture. Information Systems Frontiers, 0123456789. https://doi.org/10.1007/s10796-023-10460-z
- Helfat, C. E., & Raubitschek, R. S. (2018). Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems. Research Policy, 47(8), 1391-1399. https://doi.org/10.1016/j.respol.2018.01.019
- Höglund, L., Mårtensson, M., & Thomson, K. (2021). Strategic management, management control practices and public value creation: the strategic triangle in the Swedish public sector. Accounting, Auditing and Accountability Journal, 34(7), 1608-1634. https://doi.org/10.1108/AAAJ-11-2019-4284
- Karimi, J., & Walter, Z. (2015). The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. Journal of Management Information Systems, 32(1), 39-81. https://doi.org/10.1080/07421222.2015.1029380
- Keller, A., Konlechner, S., Güttel, W. H., & Reischauer, G. (2022). Overcoming path-dependent dynamic capabilities. Strategic Organization. https://doi.org/10.1177/14761270221125807
- Keller, A., Konlechner, S., Güttel, W. H., & Reischauer, G. (2025). Overcoming path-dependent dynamic capabilities. Strategic Organization, 23(2), 195-225. https://doi.org/10.1177/14761270221125807
- Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63(August 2020). https://doi.org/10.1016/j.ijinfomgt.2021.102466
- Lin, Y., & Wu, L. Y. (2014). Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of Business Research, 67(3), 407-413. https://doi.org/10.1016/j.jbusres.2012.12.019
- Liu, J., Song, M., Horton, R. M., & Hu, Y. (2013). Reducing spread in climate model projections of a September ice-free arctic. Proceedings of the National Academy of Sciences of the United States of America, 110(31), 12571-12576. https://doi.org/10.1073/pnas.1219716110
- Ma, F. C., Khan, F., Khan, K. U., & XiangYun, S. (2021). Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study. SAGE Open, 11(4). https://doi.org/10.1177/21582440211061388
- Mahrinasari, M. S., Bangsawan, S., & Sabri, M. F. (2024). Local wisdom and Government’s role in strengthening the sustainable competitive advantage of creative industries. Heliyon, 10(10), e31133. https://doi.org/10.1016/j.heliyon.2024.e31133
- Malatji, M., & Tolah, A. (2024). Artificial intelligence (AI) cybersecurity dimensions: a comprehensive framework for understanding adversarial and offensive AI. AI and Ethics, 0123456789, 13-16. https://doi.org/10.1007/s43681-024-00427-4
- Mariotti, S. (2024). “Open strategic autonomy” as an industrial policy compass for the EU competitiveness and growth: The good, the bad, or the ugly?. Journal of Industrial and Business Economics, 0123456789. https://doi.org/10.1007/s40812-024-00327-y
- Mbanyele, W. (2020). Do Busy Directors Impede or Spur Bank Performance and Bank Risks? Event Study Evidence From Brazil. SAGE Open, 10(2). https://doi.org/10.1177/2158244020933594
- Ouyang, R. (2024). Development of China’s digital economy: path, advantages. Journal of International Digital Economy, 4(3), 141-160. https://doi.org/10.1108/JIDE-05-2024-0022
- Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the Elusive Black Box of Dynamic Capabilities. Decision Sciences, 42(1), 239-273. https://doi.org/10.1111/j.1540-5915.2010.00287.x
- Rizana, A. F., Wiratmadja, I. I., & Akbar, M. (2025). Exploring Capabilities for Digital Transformation in the Business Context: Insight from a Systematic Literature Review. MDPI, 17(4222), 1-29.
- Sun, Z., Hu, D., & Lou, X. (2024). The Impact of Digital Transformation on the Sustainable Growth of Specialized, Refined, Differentiated, and Innovative Enterprises: Based on the Perspective of Dynamic Capability Theory. MDPI, 16(7823), 1-25. https://doi.org/2071-1050/16/17/7823
- Supriyanto, Alexandri, M. B., Kostini, N., & Dai, R. M. (2023). The effect of macroeconomics and supply chain finance (SCF) on profitability: Evidence from manufacturing companies. Uncertain Supply Chain Management, 11(1), 331-338. https://doi.org/10.5267/j.uscm.2022.9.009
- Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
- Teece, D. J., Pisano, G., & Shuen, A. (2009). Dynamic capabilities and strategic management. Knowledge and Strategy, 18(7), 77-116. https://doi.org/10.4337/9781035334995.00014
- Toufighi, S. P., Vang, J., Govindan, K., Lin, M. Z. N., & Bille, A. (2024). Exploring the impact of university-driven supplier development interventions on supplier performance: a case of the garment industry. International Journal of Productivity and Performance Management, 73(11), 355-384. https://doi.org/10.1108/IJPPM-06-2024-0405
- Van Alstyne, M., & Parker, G. (2017). Platform Business: From Resources to Relationships. NIM Marketing Intelligence Review, 9(1), 24-29. https://doi.org/10.1515/gfkmir-2017-0004
- van Lieshout, J. W. F. C., van der Velden, J. M., Blomme, R. J., & Peters, P. (2021). The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: a conceptual model towards a competitive advantage. European Journal of Management Studies, 26(2/3), 39-62. https://doi.org/10.1108/ejms-01-2021-0007
- Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122(July 2018), 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
- Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
- Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51. https://doi.org/10.1111/j.1468-2370.2007.00201.x
- Wang, F., Lei, D., & Tan, Y. (2025). From attention to action: differential effects of positive and negative media coverage of digital technology on corporate giving. Marketing Intelligence & Planning, 1, 1-21. https://doi.org/10.1108/MIP-05-2025-0396
- Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.2018.12.001
- Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24(10 SPEC ISS.), 991-995. https://doi.org/10.1002/smj.318
- Yeow, A., Soh, C., & Hansen, R. (2018). Aligning with new digital strategy: A dynamic capabilities approach. Journal of Strategic Information Systems, 27(1), 43-58. https://doi.org/10.1016/j.jsis.2017.09.001
- Zabel, C., & O’Brien, D. (2024). Understanding dynamic capabilities in emerging technology markets: antecedents, sequential nature, and impact on innovation performance in the extended reality industry. European Journal of Innovation Management, 27(9), 305-336. https://doi.org/10.1108/EJIM-07-2023-0574
- Zhang, J., Jiang, L., Liu, Z., Li, Y., Liu, K., Fang, R., Li, H., Qu, Z., Liu, C., & Li, F. (2021). A bibliometric and visual analysis of indoor occupation environmental health risks: Development, hotspots and trend directions. Journal of Cleaner Production, 300, 126824. https://doi.org/10.1016/j.jclepro.2021.126824
