Dynamic Capabilities, Eastern Relationships, and Competitive Advantages: An Empirical Assessment of Chinese and South Korean International Contractors

Abstract

Abstract This study aims to examine the direct effects of dynamic capabilities on the competitive advantages of Chinese and South Korean (hereafter Korea) contractors, the moderating roles of Eastern relationships, and the manner in which international contractors use dynamic capabilities in their projects under different levels of Eastern relationships. In this study, ordinary least squares regression analysis was used to test the proposed hypotheses. The results show that the integration and coordination ability amongst political relationships and business relationships of Chinese and Korean contractors have a significant positive effect on project competitive advantage. Political relationships can negatively moderate the impact of environmental perception ability, and integration and coordination ability on project competitive advantage, and positively moderate the impact of learning ability on project competitive advantage. Business relationships positively moderate the impact of environmental perception ability on project competitive advantage, and negatively moderate the impact of learning ability on the competitive advantage of projects. The joint research on the dynamic capabilities and competitive advantages of the contractors in developed countries and developing countries in the context of Eastern culture can further validate the universality of the dynamic capabilities theory.