How was competitive advantage sustained in management consultancies during change: The role of dynamic capabilities

Seyedkalali, Nader; Heidari, Ali

Abstract

Purpose-The purpose of this paper is to study the process in which dynamic capabilities renewed operational capabilities to sustain competitive advantage in management consulting firms of Iran during a period of drastic environmental changes. Design/methodology/approach-Using a grounded theory building approach, comparative longitudinal case analyses were conducted in consultancies of Iran. The research was based on a deep study of documents, observations and interviews with managers and employees of 14 consulting firms. Findings-It was found that during a period of environmental changes there was a relationship between dynamic capabilities and competitive advantage, but this relationship was mediated by the role of marketing and technological capabilities of a firm. It was also found that trust-building capabilities of the consulting firms moderate the relationship between dynamic and operational capabilities. The research explores homogeneity and heterogeneity of dynamic capabilities among consultancies too. Originality/value-This research shows that under changing environmental conditions, dynamic capabilities of consultancies can become a source of competitive advantage. Moreover, it discusses whether dynamic capabilities are idiosyncratic or are best practices. It also explains the role of trust-building capabilities of consulting firms in moderating the relationship between dynamic and operational capabilities in the particular environment of Iran.

Citation

Seyedkalali, N., & Heidari, A. (2016). How was competitive advantage sustained in management consultancies during change: The role of dynamic capabilities. Journal of Organizational Change Management, 29(5), 661-685. https://doi.org/10.1108/jocm-10-2015-0188

• Journal Article Type: Article
• Online Publication Date: Aug 8, 2016
• Publication Date: Aug 8, 2016
• Deposit Date: May 2, 2024
• Journal: Journal of Organizational Change Management
• Print ISSN: 0953-4814
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Issue: 5
• Pages: 661-685
• DOI: https://doi.org/10.1108/jocm-10-2015-0188
• Keywords: Dynamic capabilities; Operational capabilities; Consultancies; Sustainable competitive advantage; Trust-building capabilities