A Novel View on Collective Actions and Dynamic Capabilities in Competitive Advantage: Empirical Examination of Minor Export Crop Farms in                    Sri Lanka

Vilani Sachitra; Siong-Choy Chong

Vilani Sachitra Department of Commerce, University of Sri Jayewardenepura, Sri Lanka.
Siong-Choy Chong Finance Accreditation Agency, Malaysia.

Keywords: Resource-based view, dynamic capabilities, collective actions, competitive advantage, agribusiness sector, minor export crop farms

Abstract

Aims: Agribusiness sector is facing several challenges due to a rapid weather and technological changes. This is urged a collective approach. Literature has acknowledged that agribusiness farms which engage in collective actions generate greater value-add and enhance socio-economic contributions of a country. However, its relative importance along with the dynamic capabilities possessed by farms and subsequently competitive advantage has received very little research attention. Theoretically, this study examines the resource-based view in combination with the dynamic capability theories.

Study Design: Specifically, the minor export crop farm owners involved in the commercial cultivation of cinnamon, pepper and clove in Sri Lanka were surveyed using a personally-administered, structured questionnaire.

Results: The results of regression-based path analysis indicate a significant relationship between collective actions and competitive advantage, as well as between collective actions and dynamic capabilities.

Conclusion: The study has extended our understanding of the importance of collective actions for the minor export crop farm owners. Research and managerial implications are provided together with future research directions.