International Journal of Commerce and Management Research

Authors
Nurul Nadia Abd Aziz

Abstract
This study aims to determine the influence of organisational capabilities on competitive advantage. In addition, this study also tests the moderating effect of managerial competencies on the relationship between organisational capabilities and competitive advantage. A total of 330 SMEs in processed food industry has participated in this study. A structural equation modelling using AMOS was applied in analysing the direct and moderating effects hypotheses. Fitness indexes statistics confirmed that the overall model fit and all of the paths in the model were statistically significant. Results support the hypothesised influence of organisational capabilities on competitive advantage. The organisational capabilities explain 93 percent of the variance in competitive advantage. Managerial competencies were also found to fully moderate the influence of organisational capabilities on competitive advantage. In brief, this study contributes to competitive advantage studies through a comprehensive empirical research. While most of the previous studies explore the effects of organisational capabilities on competitive advantage using theory building, this study was completing the existing theory.