Catalyzing resource recombination in higher education through potential building and value realizing capabilities

Purpose This paper aims to examine internal market orientation (IMO), potential building capabilities and value realizing capabilities, i.e. dynamic capabilities (DC) as an antecedent of resource recombination in higher education institutions of the United Arab Emirates. Design/methodology/approach Data was collected from 349 faculty members and analyzed using the covariance-based structural equation modeling technique. Findings Results did not support a direct relationship between IMO and resource recombination. However, results did provide support for IMO’s significant impact on potential building and value realizing capabilities. The impact of potential building capabilities on resource recombination was partially supported, whereas the impact of value realizing capabilities on resource recombination was fully supported. Practical implications This study provides guidelines for the higher education managers, especially for the strategic management of its resources. The study also provides a basis for improving internal market policies to remain abreast of DC to succeed in the market. Most significantly, the findings of the study offer guidance toward effective resource planning and innovative management practices. Originality/value This study identifies the essential resources and capabilities framework that guides firms to modify their capabilities in the face of changing environment.