Global Transformation of the Roots of Competitive Advantage on the ASEAN Firms

Abstract

Numerous research have identified factors that contribute to competitive advantages, such as dynamic capabilities and distinctive competencies. However, these factors sometimes fail to perform optimally in turbulent situations, like the current global pandemic. This has made it increasingly difficult to sustain a competitive advantage. Consequently, this study aims to develop a new foundation for competitive advantage after the pandemic. We hypothesize that pandemic leadership and resilience systems will enhance the relationship between distinctive competencies and competitive advantage. Using structural equation modeling, we evaluated our proposed model with a sample of 200 ASEAN multinational firms. The findings show a positive relationship between dynamic capabilities and competitive advantage through distinctive competencies. Furthermore, pandemic leadership and resilience systems beneficially moderate the relationship between distinctive competencies and competitive advantage.