Exploring the impact of generational dynamic capabilities and cultural moderators on competitive advantage sustainability

Business in the fast-changing digital world has great potential (Haleem et al., 2024). Born between the mid-1990s and early 2010s, Generation Z is distinguished by its high levels of creativity, reliance on technology, and demand for flexible work schedules (Hassoun et al., 2023). This study aims to analyze the pattern of dynamic capabilities (resilient, innovative, independent, and wise) and proficiency capabilities as Gen Z characters in maintaining sustainable competitive advantage. The sample consisted of 768 respondents, with the model and hypothesis testing method using partial least squares structural equation modeling (PLS-SEM). The results show that proficiency capabilities have a positive effect on sustainable competitive advantage. Dynamic capabilities, resilient capabilities, and volatility, uncertainty, complexity, and ambiguity (VUCA) capabilities also have a positive effect on proficiency capabilities. However, the capabilities of the dynamic, innovative, and independent generations have not been proven to have a positive effect on proficiency capabilities. In addition, brittle, anxious, nonlinear, and incomprehensible (BANI) conditions and cultural values do not moderate the relationship between proficiency capabilities and sustainable competitive advantage.