Paradigm Shift: Dynamic Capabilities in Startups for Sustainable Advantage Through the Strategic Intangibles Triad

The objectives of this study include analyzing the mechanism underlying the construction of sustainable competitive advantage in Indonesian digital startups through the integration of three strategic variables: Market-oriented Culture, Digital Capability, and Corporate Reputation, while Dynamic Capabilities act as the mediator. A hypothetical-deductive method design and covariance-based Structural Equation Modeling (SEM) analysis was used to collect data from 496 respondents with a structured questionnaire in three stages to minimize method bias. The results of the analysis show that each independent variable significantly influences Sustainable Competitive Advantage both directly and indirectly through the mediation of Dynamic Capabilities that enhance the sensing, seizing, and resource reconfiguring processes. The uniqueness of this study is the development of an integrated framework that combines organizational culture, digital capability, and corporate reputation in emerging-market contexts in a holistic manner. This study would contribute fresh insights on Dynamic Capabilities and unique strategies for making flexible and sustainable startup business models. From this study, theoretical and practical implications may imbue avenues for new research and offer strategic guidance to industry practitioners in adapting to the increasingly dynamic features of the global market.