– The purpose of this paper is to advance the concept of “integrative capability” as a critical dynamic capability (DC) and empirically investigate its implications for a firm’s sustainable competitive advantage in business partnerships.
– This study is based on an empirical analysis of a sample of 300 manufacturing firms in south and central China.
– Integrative capability is an important mediator in relationship between operational capabilities (managerial, marketing and technological capabilities) and firm performance. Integrative capability has a significant direct impact on a firm’s performance (marketing effectiveness and financial performance) and also indirect impact via the creation of new operational capabilities.
– Managers should recognise the significant payoffs of developing integrative capability. Integrative capability helps a firm transfer the benefits of operational capabilities from alliances partners to superior firm performance. Further, integrative capability also effectively updates and renews a firm’s operational capabilities that lead to an enhanced firm performance.
– Extending the DC literature, this study untangles the complex relationship among operational capabilities, DC and firm performance. Moreover, the study adds new insights into extant literature by conceptualising, operationalising and empirically testing one specific DC – integrative capability.
