Effect of Human Capital and Dynamic Capabilities on Competitive Advantage: Mediating Analysis

Aim: A better understanding of farm-level competitiveness of agribusiness sector provides the necessary framework for agribusiness farms to compete at domestic and global markets. This study aims to determine the relationships of human capital, dynamic capabilities and competitive advantage in the minor export crop sector in Sri Lanka.

Study Design: 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. The regression-based path analysis was used to test the model.

Results: The results indicate significant relationships between human capital and capabilities of learning and relationship building as well as between human capital and competitive advantage.

Implications: The findings provide useful insights where an understanding of the link between human capital, as a resource, in dynamic capabilities and competitive advantage which allows human capital to be configured appropriately and deployed effectively and efficiently based on dynamic capabilities of the minor export crop farms to achieve competitive advantage.

Original: The study has extended our understanding of the importance of human capital for in relation to dynamic capabilities.