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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

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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.


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