Dynamic capabilities for socio-economical sustainability management: evidence from international clothing firms in Ethiopia industrial zones

Fitsum Getachew Bayu, Eshetie Berhan and Frank Ebinger

International Journal of Business Excellence, 2026, vol. 38, issue 4, 521-541

Abstract: This paper introduces the strategic micro-foundational construct of dynamic capabilities and explores their causal relationship with socio-economical sustainability variables by considering relational capabilities and focusing on the external environment as a mediating factor. The study used a case study approach targeting export-oriented international clothing firms investing in the industrial zones of Ethiopia. Primary data were gathered for the measurement variables and presented with descriptive and multivariate statistics. Moreover, a system dynamics model was applied to model the dynamic relationship and understand the dynamic capability growth for socio-economical sustainability. The findings show that the firm's accumulated operational capabilities have not significantly influenced socio-economical sustainability. However, a firm's dynamic capabilities to sense, seize, and reconfigure sustainability requirements from the external environment through relational capabilities were more influential. In this regard, it was understood that the firms have a good opportunity to adopt a dynamic capability-driven strategic management approach for sustainable development.

Keywords: dynamic capabilities; social sustainability; economic sustainability; Ethiopia industrial zones; international clothing firms; Ethiopia. (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.inderscience.com/link.php?id=153534 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:38:y:2026:i:4:p:521-541

Access Statistics for this article

More articles in International Journal of Business Excellence from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().