Paradigm Shift: Dynamic Capabilities in Startups for Sustainable Advantage Through the Strategic Intangibles Triad
DOI:
https://doi.org/10.48161/qaj.v6n1a2096Keywords:
sustainable competitive advantage, market-oriented culture, digital capability, corporate reputation, dynamic capabilities, startup digital.Abstract
The objectives of this study include analyzing the mechanism underlying the construction of sustainable competitive advantage in Indonesian digital startups through the integration of three strategic variables: Market-oriented Culture, Digital Capability, and Corporate Reputation, while Dynamic Capabilities act as the mediator. A hypothetical-deductive method design and covariance-based Structural Equation Modeling (SEM) analysis was used to collect data from 496 respondents with a structured questionnaire in three stages to minimize method bias. The results of the analysis show that each independent variable significantly influences Sustainable Competitive Advantage both directly and indirectly through the mediation of Dynamic Capabilities that enhance the sensing, seizing, and resource reconfiguring processes. The uniqueness of this study is the development of an integrated framework that combines organizational culture, digital capability, and corporate reputation in emerging-market contexts in a holistic manner. This study would contribute fresh insights on Dynamic Capabilities and unique strategies for making flexible and sustainable startup business models. From this study, theoretical and practical implications may imbue avenues for new research and offer strategic guidance to industry practitioners in adapting to the increasingly dynamic features of the global market.
Downloads
References
Kementerian Koperasi dan UKM. (2023). Dominasi perusahaan asing di sektor strategis Indonesia. https://kemenkopukm.go.id
CB Insights. (2021). Top reasons why startups fail. https://www.cbinsights.com/research/startup-failure-reasons-top
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
Proksch, D., Rosin, A. F., Stubner, S., & Pinkwart, A. (2021). The influence of a digital strategy on the digitalization of new ventures. Journal of Small Business Management, 1–29.
Malik, M., Ali, M., Latan, H., & Chiappetta Jabbour, C. J. (2023). Green project management practices and sustainable competitive advantage. Journal of Knowledge Management, 27(9), 2350–2375.
Anokhin, S., Morgan, T., Schulze, W., & Wuebker, R. (2022). Is a reputation for misconduct harmful? Journal of Business Research, 138, 65–76.
Wantiknas, T. H. (2020). Transformasi digital untuk pelayanan publik. Dewan TIK Nasional.
Ghezzi, A., & Cavallo, A. (2020). Agile business model innovation in digital entrepreneurship. Journal of Business Research, 110, 519–537.
Van den Heuvel, C., Kao, P. J., & Matyas, M. (2020). Business model innovations in mobility sector startups. Research in Transportation Business & Management, 37, 100568.
Oliveira-Dias, D., Kneipp, J. M., Bichueti, R. S., & Gomes, C. M. (2022). Business model innovation for sustainability. Management Decision, 60(13), 105–129.
Ostermann, C. M., Nascimento, L. S., & Zen, A. C. (2021). Business model innovation for circular economy. Frontiers in Sustainability, 2, 1–13.
Khin, S., & Ho, T. C. F. (2019). Digital technology and organizational performance. International Journal of Innovation Science, 11(2), 177–195.
Lee, M. J., & Roh, T. (2023). Digitalization capability and sustainable performance. Management Decision.
García-Gutiérrez, I., & Martínez-Borreguero, F. J. (2016). The innovation pivot framework. Research-Technology Management, 59(5), 48–56.
Pakura, S., & Rudeloff, C. (2023). Social media PR and startup reputation. Journal of Small Business & Entrepreneurship, 35(2), 153–180.
Bruna, M. G., & Nicolò, D. (2020). Corporate reputation and social sustainability in startups. Financial Research Letters, 35, 101508.
Christodoulou, I. P., Rizomyliotis, I., Konstantoulaki, K., Alfiero, S., Hasanago, S., & Paolone, F. (2025). Sustainability-focused startup business models. Business Ethics, the Environment & Responsibility, 34(3), 936–950.
Franceschelli, M. V., Santoro, G., & Candelo, E. (2018). Business model innovation for sustainability. British Food Journal, 120(10), 2483–2494.
Paeplow, J., Schoormann, T., Möller, F., & Strobel, G. (2025). AI startups for good. Journal of Cleaner Production, 520.
Sreenivasan, A., & Suresh, M. (2024). Competitive advantage in startups operations 4.0. Competitiveness Review, 34(6), 1155–1177.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121.
Pitelis, C. N., Teece, D. J., & Yang, H. (2024). Dynamic capabilities and MNE global strategy. Journal of Management Studies, 61(7), 3295–3326.
Arend, R. J., & Bromiley, P. (2009). Assessing the dynamic capabilities view. Strategic Organization, 7(1), 75–90.
Giustiziero, G., Kretschmer, T., Somaya, D., & Wu, B. (2023). Hyperspecialization and hyperscaling. Strategic Management Journal, 44(6), 1391–1424.
Bogers, M., Chesbrough, H., & Moedas, C. (2018). Open innovation. California Management Review, 60(2), 5–16.
Cruz Rincon, M. L., Agredo Diaz, M. L., & Puente, R. C. (2023). Entrepreneurship and SME performance. Journal of Entrepreneurship in Emerging Economies, 15(5), 945–966.
Wilson, G. A., & Liguori, E. (2023). Market orientation and failure learning. Journal of Small Business Management, 61(6), 3027–3045.
Narver, J. C., & Slater, S. F. (1990). Market orientation and profitability. Journal of Marketing, 54(4), 20–35.
Na, Y. K., Kang, S., & Jeong, H. Y. (2019). Market orientation in sharing economy. Sustainability, 11(3).
Ha, J. C., Lee, J. W., & Seong, J. Y. (2021). Sustainable competitive advantage. Sustainability, 13(7).
Farooq, R., Vij, S., & Kaur, J. (2021). Innovation orientation and performance. Measuring Business Excellence, 25(3), 328–345.
Mazaira, A., González, E., & Avendaño, R. (2003). Market orientation and competitive advantage. Marketing Intelligence & Planning, 21(4), 220–229.
Tadajewski, M. (2010). History of critical marketing studies. Journal of Marketing Management, 26(9–10), 773–824.
Dibb, S., & Simkin, L. (2009). Market segmentation implementation. Journal of Marketing Management, 25(3–4), 375–396.
Chen, Y. A., Guo, S. L., & Huang, K. F. (2023). SME internationalization. International Journal of Emerging Markets.
Ismail, I. J. (2023). Digitalization and competitive advantage. Management Matters, 20(1), 53–73.
Chaudhuri, A., Subramanian, N., & Dora, M. (2022). Circular economy and SMEs. Journal of Business Research, 142, 32–44.
Le, T. T. (2023). CSR and SME performance. International Journal of Emerging Markets, 18(10), 4565–4590.
Wu, L., Sun, L., Chang, Q., Zhang, D., & Qi, P. (2022). Digitalization and open innovation. Technological Forecasting and Social Change, 184, 122019.
Rupeika-Apoga, R., Petrovska, K., & Bule, L. (2022). Digital transformation of SMEs. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 669–685.
Aggarwal, A., & Saxena, N. (2023). CSR, reputation, and brand equity. Journal of Public Affairs, 23(1), e2838.
Miotto, G., Del-Castillo-Feito, C., & Blanco-González, A. (2020). Reputation and legitimacy. Journal of Business Research, 112, 342–353.
Agyemang, O. S., Fantini, G., & Ansong, A. (2016). Foreign ownership in Africa. Journal of African Business, 17(2), 225–253.
Xuetong, W., Hussain, M., Rasool, S. F., & Mohelska, H. (2023). CSR and competitive advantage. Environmental Science and Pollution Research.
Afum, E., Agyabeng-Mensah, Y., Sun, Z., Frimpong, B., Kusi, L. Y., & Acquah, I. S. K. (2020). Green manufacturing and reputation. Journal of Manufacturing Technology Management, 31(7), 1417–1438.
Hamidi, S. R., Ismail, M. A., Shuhidan, S. M., & Kadir, S. A. (2023). Corporate reputation in Industry 4.0. SAGE Open, 13(4).
Parente-Laverde, A. M., Rojas-DeFrancisco, L., & Martins, I. (2022). Country and corporate reputation. International Journal of Emerging Markets, 19(6), 1542–1562.
Vidaver-Cohen, D. (2007). Reputation beyond rankings. Corporate Reputation Review, 10(4), 278–304.
Agyabeng-Mensah, Y., Afum, E., Baah, C., & Essel, D. (2022). Circular supply chain capability. International Journal of Physical Distribution & Logistics Management, 52(5/6), 431–455.
Amjad, F., Abbas, W., Zia-Ur-Rehman, M., Baig, S. A., Hashim, M., & Khan, A. (2021). Green HRM and sustainability. Environmental Science and Pollution Research, 28(22), 28191–28206.
Bhandari, K. R. (2022). Resource-based view and ESG. Business Strategy and the Environment, 31, 1525–1537.
Zhou, M., Govindan, K., & Xie, X. (2020). Green innovation in supply chains. Journal of Cleaner Production, 260.
Ahmad, M., Wu, Q., & Ahmed, S. (2024). CSR digitalization and SME performance. Sustainability Accounting, Management and Policy Journal, 15(1), 119–147.
Ramadan, M., Shuqqo, H., Qtaishat, L., Asmar, H., & Salah, B. (2020). Big data analytics and competitive advantage. Applied Sciences, 10(19).
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy. MIS Quarterly, 37(2), 471–482.
Martins de Souza, A., Puglieri, F. N., & de Francisco, A. C. (2024). Sustainable startups. Sustainability, 16.
Ketprapakorn, N., & Kantabutra, S. (2022). Sustainability culture. Sustainable Production and Consumption, 32, 638–654.
Schein, E. H. (1992). Organizational culture and leadership. Jossey-Bass.
Kamboj, S., & Rahman, Z. (2017). Market orientation and innovation. Management Research Review.
Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Market orientation revisited. Journal of Marketing, 75(1), 16–30.
Palumbo, R., & Douglas, A. (2024). Organizational culture and quality management. International Journal of Quality & Reliability Management, 41(1), 195–268.
Singh, A. K., Verma, J., & Verma, R. (2020). Market-oriented IT competence. Global Business Review, 21(2), 418–435.
Engelmann, A. (2024). Dynamic capabilities in SMEs. Entrepreneurship & Regional Development, 36(5–6), 632–658.
Leonidou, L. C., Palihawadana, D., Aykol, B., Nilssen, F., & Christodoulides, P. (2025). Strategic import planning. Management International Review.
Chaudhuri, R., Chatterjee, S., & Vrontis, D. (2025). Dynamic capabilities and competitiveness. Competitiveness Review, 35(3), 457–475.
Taghavy, A., Hazari, N., & Hooshmand Chaijani, M. (2025). Startup competitiveness in Iran. Asia-Pacific Journal of Business Administration, 17(2), 542–560.
Barney, J. B. (2000). Gaining and sustaining competitive advantage. Pearson Education.
Li, Y., Cui, L., Wu, L., Lowry, P. B., Kumar, A., & Tan, K. H. (2024). Digitalization and sustainability performance. Journal of Information Technology, 39(4), 687–715.
Knudsen, E. S., Lien, L. B., Timmermans, B., Belik, I., & Pandey, S. (2021). Digitalization and competitive advantage. Journal of Business Research, 128, 360–369.
Thai, H. C. V., Hong-Hue, T. H., & Tran, M. L. (2024). Dynamic capabilities in SMEs. Journal of Asia Business Studies, 18(2), 385–411.
Sullivan, Y., Wamba, S. F., & Dunaway, M. (2023). IoT and competitive advantage. Journal of the Association for Information Systems, 24(3), 745–781.
Du, X., Wang, N., Lu, S., Zhang, A., & Tsai, S. B. (2024). Digital transformation and eco-strategy. Chinese Management Studies.
Delgado-García, J. B., de Quevedo-Puente, E., & Díez-Esteban, J. M. (2011). Corporate reputation and firm risk. British Journal of Management, 24(1), 1–20.
Nicolas, M. L. D., Desroziers, A., Caccioli, F., & Aste, T. (2023). ESG reputation risk. Financial Research Letters, 59, 1–18.
Charoontham, K., & Amornpetchkul, T. (2021). Startup accelerator reputation. Economics of Innovation and New Technology, 32(2), 250–274.
Bornay-Barrachina, M., López-Cabrales, Á., & Salas-Vallina, A. (2025). Strategic leadership and dynamic capabilities. BRQ Business Research Quarterly, 28(2), 399–420.
Befort, N., Ayoub, M., & Matt, M. (2025). Dynamic capabilities and eco-innovation. Current Opinion in Green and Sustainable Chemistry, 53, 101031.
Bethlendi, A., Hegedűs, S., & Szőcs, Á. (2025). Learning from startup failures. Journal of Innovation and Entrepreneurship, 14(1).
van Lieshout, J. W. F. C., van der Velden, J. M., Blomme, R. J., & Peters, P. (2021). Ambidexterity and competitive advantage. European Journal of Management Studies, 26(2–3), 39–62.
Hossain, M. S., Hussain, K., Kannan, S., & Kunju Raman Nair, S. K. (2022). RBV and hotel industry. Journal of Hospitality and Tourism Insights, 5(1), 79–98.
Pavlou, P. A., & El Sawy, O. A. (2011). Dynamic capabilities black box. Decision Sciences, 42(1), 239–273.
Correia, R. J., Dias, J. G., & Teixeira, M. S. (2020). Market orientation and performance. Journal of Strategy and Management, 14(2), 187–206.
Piantoni, G., Arena, M., & Azzone, G. (2025). CSR and innovation ecosystems. Journal of Cleaner Production, 486, 144594.
Kovilage, M. P., Yapa, S., & Hewagamage, C. (2024). Dynamic capabilities and operational excellence. International Journal of Productivity and Performance Management, 73(9), 2755–2786.
Bari, N., Chimhundu, R., & Chan, K. C. (2024). Sustainable dynamic capabilities. Sustainability, 16, 2864.
Rinthaisong, I., & Duangtong, P. (2024). Dynamic capability and startup survival. HighTech and Innovation Journal, 5(4), 977–994.
Bharadwaj, A. S. (2000). IT capability and firm performance. MIS Quarterly, 24(1), 169–196.
Akter, S., Gunasekaran, A., Wamba, S. F., Babu, M. M., & Hani, U. (2020). Analytics capabilities. Technological Forecasting and Social Change, 159, 120180.
Karan, A., Verma, J., & Verma, R. (2024). Organizational capabilities and sustainability. Journal of Indian Business Research, 16(4), 410–433.
Ahmed, S., Abd Aziz, N., Haque, R., Abdul, R. A., & Qazi, S. Z. (2024). Digital transformation in manufacturing. Cogent Business & Management, 11(1).
Pu, G., Li, S., & Bai, J. (2023). Supply chain resilience. Environmental Science and Pollution Research, 30(2), 4881–4898.
Abid, N., Aftab, J., & Savastano, M. (2025). Green entrepreneurial orientation. Business Process Management Journal, 31(2), 736–771.
Ries, E. (2011). The lean startup. Crown Currency.
Saeedikiya, M., Salunke, S., & Kowalkiewicz, M. (2024). Digital transformation in SMEs. Journal of Cleaner Production, 439, 140718.
Usirono, H., Paiva, E. L., & Partyka, R. B. (2024). Resources and dynamic capabilities. Benchmarking.
Fombrun, C. J., & Rindova, V. (1998). Reputation management. Corporate Reputation Review, 1(3), 205–212.
Fombrun, C. J., & Van Riel, C. B. M. (2004). Fame & fortune. FT Press.
Li, W., Waris, I., & Bhutto, M. Y. (2024). Big data and green advantage. Journal of Manufacturing Technology Management, 35(1), 119–140.
Creswell, J. W. (2014). Research design (4th ed.). Sage.
Sekaran, U., & Bougie, R. (2016). Research methods for business. Wiley.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). PLS-SEM guidelines. European Business Review, 31(1), 2–24.
Homburg, C., & Pflesser, C. (2000). Market-oriented culture. Journal of Marketing Research, 37(4), 449–462.
Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J., & Kou, G. (2015). IT capabilities and innovation. Information & Management, 52(6), 643–657.
Knight, G. A., & Cavusgil, S. T. (2004). Born-global firms. Journal of International Business Studies, 35(2), 124–141.
Zhou, Y., Lou, L., Zhang, J. Z., Gauthier, J., & Gupta, B. B. (2024). Startup reputation and survival. International Entrepreneurship and Management Journal, 20(4), 2591–2609.
Ariztia, T., & Araneda, F. (2022). Circular economy narratives. Consumption Markets & Culture, 25(2), 124–138.
Bolis, I., Morioka, S. N., Leite, W. K. D. S., & Zambroni-De-Souza, P. C. (2021). Values in sustainability. Sustainability, 13(2), 1–19.
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method bias. Journal of Applied Psychology, 88(5), 879–903.
Braun, V., & Clarke, V. (2019). Reflexive thematic analysis. Qualitative Research in Sport, Exercise and Health, 11(4), 589–597.
Bhardwaj, S., Chopra, R., & Pandita, D. (2025). Digital evolution of HRM. International Journal of Organizational Analysis.
Vial, G. (2019). Digital transformation review. Journal of Strategic Information Systems, 28(2), 118–144.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities. Strategic Management Journal, 18(7), 509–533.
Ambrosini, V., Bowman, C., & Collier, N. (2009). Resource renewal. British Journal of Management, 20, S9–S24.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., & Winter, S. (2009). Dynamic capabilities. Wiley.
Vergne, J. P., & Durand, R. (2011). Path dependence. Organization Studies, 32(3), 365–382.
Rindova, V. P., Petkova, A. P., & Kotha, S. (2007). Building reputation. Strategic Organization, 5(1), 31–70.
Petkova, A. P., Wadhwa, A., Yao, X., & Jain, S. (2014). Reputation under ambiguity. Academy of Management Journal, 57(2), 422–448.
Bitektine, A. (2011). Social judgments of organizations. Academy of Management Review, 36(1), 151–179.
Rindova, V., Ferrier, W. J., & Wiltbank, R. (2010). Competitive action sequences. Strategic Management Journal, 31(13), 1474–1497.
Barnett, W. A., & Alkhareif, R. M. (2015). Measuring money supply. International Journal of Financial Studies, 3, 49–55.
Sirmon, D. G., Hitt, M. A., & Ireland, R. D. (2007). Managing resources. Academy of Management Review, 32(1), 273–292.
Barreto, I. (2010). Dynamic capabilities review. Journal of Management, 36(1), 256–280.
Zhang, Y., & Rajagopalan, N. (2010). CEO origin and change. Strategic Management Journal, 31(3), 334–346.
Teece, D. J. (2014). Foundations of enterprise performance. Academy of Management Perspectives, 28(4), 328–352.
Chaudhuri, R., Chatterjee, S., Mariani, M. M., & Wamba, S. F. (2024). Emerging technologies and innovation. Technological Forecasting and Social Change, 200, 123165.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Qubahan Academic Journal

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.



