Strategic leadership and its impact on dynamic capabilities and sustainable competitive advantages

Purpose This research examines the relationship between strategic leadership, dynamic capabilities and sustainable competitive advantages. Unlike previous studies that focused on different independent variables or lacked intervening variables altogether, this research delves into how the various dimensions of strategic leadership and sustainable competitive advantage can enhance, thereby strengthening the dynamic capabilities of the organization and how strategic leadership itself can impact on sustaining competitive advantage. Design/methodology/approach The descriptive analytical method was used to achieve the objectives of the study and answer its questions. Statistical information was conducted through structured equation modelling with Smart-PLS.4 with data coming from a representative sample of Palestinian pharmaceutical companies. Findings The results of the study concluded that strategic leadership positively impacts sustainable competitive advantages and that sustainable competitive advantage is positively affected by the dimensions of strategic leadership (human capital, social capital) in Palestinian pharmaceutical companies. The results also showed that strategic leadership has a positive impact on the dynamic capabilities of Palestinian pharmaceutical companies. Furthermore, the results showed that sustainable competitive advantage has a positive impact on the dynamic capabilities in Palestinian pharmaceutical companies and that dynamic capabilities are affected by sensing ability, learning ability and integration ability. Finally, the results showed that sustaining competitive advantage impacts on the technological innovation, knowledge management and organizational agility of Palestinian pharmaceutical companies. Practical implications The study provides guidelines for managers and policymakers with practical insights on how to utilize strategic leadership practices to improve dynamic capabilities and foster sustainable competitive advantages; furthermore, how to create supportive environments for leadership and innovation in regions with socio-economic challenges, and also assists in strategic leadership’s ability to adapt in emerging economies. Originality/value This research shows that strategic leadership contributes to achieving sustainable competitive advantages in Palestinian pharmaceutical companies by directing them towards change and innovation and developing dynamic capabilities that allow the company to adapt to industrial transformations and compete effectively in the market. Firms can, therefore, provide evidence through this analysis of how sustainable competitive advantages can be explained as a result of effective strategic leadership and the deployment of dynamic capabilities.