The Mediating role of second order capabilities on Capabilities-Competitive Advantage linkage: A Capability Life Cycle approach

Abstract

I examine the role of second order capabilities on capabilities- competitive advantage relationship and its influence on sustainability of competitive advantage. The concept of capabilities life cycle has been used to explicate the proposed relationship. Discussion also involves impact of velocity of environment on capabilities (operational as well as dynamic capabilities) – competitive advantage relationship. Investigation posit a mediation effect of second order capabilities on capabilities- competitive advantage relationship and they also have potential to help in attaining sustainability of completive advantage, while velocity of environment moderates capabilities- competitive advantage  relationship.