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Purpose

This research aims to evaluate the effect of intellectual capital (IC) and organizational resilience on competitive advantage (CA) along with innovation capacity (INC) as a mediator. Furthermore, organizational risk-taking tolerance plays a moderating role between INC and CA over rivals.

Design/methodology/approach

Through questionnaires, data were gathered from 378 industrial companies in Pakistan. Data were collected by employing the technique named simple random sampling. The partial least squares structural equation modeling approach was employed for testing the proposed hypotheses.

Findings

IC and organizational resilience revealed a significant effect on INC and competitiveness according to the findings of this study. Furthermore, the link of IC with organizational resilience and CA is significantly mediated by INC. In addition to this, INC significantly affects CA. Business strategies may help you get a competitive edge. Finally, business strategies play an important role in determining INC and CA.

Practical implications

The study focuses on how manufacturing sector managers employ IC, organizational resilience, INC and organizational tactics to examine CA. Furthermore, it bridges the gap along with supporting the management in the Lahore manufacturing business to examine CA by concentrating on exogenous structures.

Originality/value

By concentrating on factors that influence CA, this research contributes to the body of knowledge. With the use of resource orchestration theory, this preliminary research analyzes the relationship between study variables. Researchers, students and managers might all benefit from the findings of this study.

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