Dynamic capabilities for socio-economical sustainability management: evidence from international clothing firms in Ethiopia industrial zones

  • This paper introduces the strategic micro-foundational construct of dynamic capabilities and explores their causal relationship with socio-economical sustainability variables by considering relational capabilities and focusing on the external environment as a mediating factor. The study used a case study approach targeting export-oriented international clothing firms investing in the industrial zones of Ethiopia. Primary data were gathered for the measurement variables and presented with descriptive and multivariate statistics. Moreover, a system dynamics model was applied to model the dynamic relationship and understand the dynamic capability growth for socio-economical sustainability. The findings show that the firm’s accumulated operational capabilities have not significantly influenced socio-economical sustainability. However, a firm’s dynamic capabilities to sense, seize, and reconfigure sustainability requirements from the external environment through relational capabilities were more influential. In this regard, it wasThis paper introduces the strategic micro-foundational construct of dynamic capabilities and explores their causal relationship with socio-economical sustainability variables by considering relational capabilities and focusing on the external environment as a mediating factor. The study used a case study approach targeting export-oriented international clothing firms investing in the industrial zones of Ethiopia. Primary data were gathered for the measurement variables and presented with descriptive and multivariate statistics. Moreover, a system dynamics model was applied to model the dynamic relationship and understand the dynamic capability growth for socio-economical sustainability. The findings show that the firm’s accumulated operational capabilities have not significantly influenced socio-economical sustainability. However, a firm’s dynamic capabilities to sense, seize, and reconfigure sustainability requirements from the external environment through relational capabilities were more influential. In this regard, it was understood that the firms have a good opportunity to adopt a dynamic capability-driven strategic management approach for sustainable development.show moreshow less

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Metadaten
Author:Frank EbingerORCiD, Eshetie Berhan, Fitsum Bayu
DOI:https://doi.org/10.1504/ijbex.2022.10050078
ISSN:1756-0047
Parent Title (English):International Journal of Business Excellence
Publisher:Inderscience Publishers
Document Type:Article
Language:English
Reviewed:Begutachtet/Reviewed
Release Date:2024/06/17
Tag:dynamic capabilities; social sustainability; economic sustainability; Ethiopia industrial zones; international clothing firms; Ethiopia.
Volume:1
Issue:1
Article Number:1
institutes:Fakultät Betriebswirtschaft
Research Themes:Soziale & ökonomische Transformation
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