Contextual and institutional factors in the relationship between dynamic capabilities and sustainable competitive advantage: A systematic review in emerging economies
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Abstract
The competitive environment of emerging economies is characterized by high levels of volatility, institutional heterogeneity, and competitive pressure, posing significant challenges for organizations to transform their internal capabilities into sustainable competitive advantages. In this context, dynamic capabilities have gained relevance as an explanatory framework; however, existing empirical evidence shows scattered results regarding the role played by contextual and institutional factors in this relationship. The objective of this article was to identify and categorize the contextual and institutional factors that moderate the relationship between dynamic capabilities and sustainable competitive advantage in organizations across different industrial sectors in emerging economies. To this end, a systematic review article was developed following the PRISMA protocol guidelines, using a structured search in the Scopus database and applying rigorous inclusion and exclusion criteria to empirical studies published between 2019 and 2025. The results showed that contextual factors such as environmental dynamism, uncertainty, and competitive intensity, as well as institutional factors related to institutional quality, government support, the regulatory framework, and infrastructure, contingently influence the effectiveness of dynamic capabilities, with significant variations by sector and region. The main conclusion indicates that sustainable competitive advantage in emerging economies depends on the strategic alignment between dynamic capabilities and contextual and institutional conditions, which underscores the need for contingent approaches in both research and organizational practice
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