• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2021 > Volume 12 Number 2 (Apr. 2021) >
IJTEF 2021 Vol.12(2): 43-47 ISSN: 2010-023X
DOI: 10.18178/ijtef.2021.12.2.691

The Influence of Proactive Capabilities and Knowledge-Based Dynamic Capabilities on the Competitive Advantage of Manufacturing Firms

Norhuda Salim, Mohd Nizam Ab Rahman, and Dzuraidah Abd. Wahab

Abstract—Achieving and sustaining competitive advantage is a goal among firms, but it is increasingly challenging in a rapid changing and sophisticated environment. Most of the environmental management undertaken by firms in developing countries are not able to increase the competitive advantage of the product. Hence, this study investigates proactive capabilities that need to be developed in a dynamic environment where it involves green product innovation, environmental proactivity, alliance pro-activeness, and knowledge-based dynamic capabilities that impact on competitive advantage performance. This study involved a survey of 157 manufacturing firms with ISO 14001 certification throughout Malaysia. By implementing structural equation modelling approach, the results provided evidence of positive and significant direct effects of green product innovation and environmental pro-activity on firm’s competitive advantage. The relationship of alliance pro-activeness was fully mediated by the presence of knowledge-based dynamic capabilities as a condition to survive and prosper in a competitive market.

Index Terms—Alliance pro-activeness, environmental proactivity, green product innovation, knowledge-based dynamic capabilities.

N. Salim, M. N. Ab Rahman, and D. Abd Wahab are with the Faculty of Engineering & Built Environment, The National University of Malaysia, 43600 UKM Bangi, Selangor, Malaysia (e-mail: norhuda.ukm@ gmail.com, mnizam@ukm.edu.my, dzuraidah@ukm.edu.my).

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Cite: Norhuda Salim, Mohd Nizam Ab Rahman, and Dzuraidah Abd. Wahab, "The Influence of Proactive Capabilities and Knowledge-Based Dynamic Capabilities on the Competitive Advantage of Manufacturing Firms," International Journal of Trade, Economics and Finance vol.12, no.2, pp. 43-47, 2021.

Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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