Management Studies and Business Journal
Vol. 3 No. 8 (2026): Management Studies and Business Journal (PRODUCTIVITY)

RECONCILING DYNAMIC CAPABILITIES WITH INSTITUTIONAL FRICTION: A STRATEGIC HUMAN RESOURCE MANAGEMENT FRAMEWORK FOR COMPETITIVE ADVANTAGE IN SERVICE CONGLOMERATES

Ariya Primindra (UPN University, Jakarta, Indonesia)



Article Info

Publish Date
30 Aug 2026

Abstract

Service conglomerates operating across aviation, hospitality, catering, and logistics face a strategic tension between the need for organizational agility and the persistence of bureaucratic and functional boundaries. This study develops and illustrates a structural model explaining how strategic human resource management (SHRM) capabilities can be translated into sustainable competitive advantage through cross-functional collaboration and work environment quality. The model integrates the resource-based view and dynamic capabilities perspective and examines transformational leadership efficacy, competency framework alignment, and motivational architecture as organizational inputs. Cross-functional collaboration and work environment quality are specified as mediating mechanisms, while sustainable competitive advantage is the focal outcome. To demonstrate the proposed empirical design, a simulated dataset of 312 service employees is analyzed using partial least squares structural equation modeling (PLS-SEM) with 5,000 bootstrap resamples. The simulated results indicate positive and statistically significant relationships from transformational leadership efficacy to cross-functional collaboration and work environment quality, from competency framework alignment to cross-functional collaboration, and from motivational architecture to work environment quality. Both mediators are positively associated with sustainable competitive advantage, while transformational leadership also retains a positive direct association with the outcome. The simulated indirect effects are consistent with complementary mediation. The article contributes to a theoretically integrated framework in which human capital is treated not merely as an administrative input but as a dynamic organizational resource that enables coordination, adaptation, and service differentiation. Because the numerical evidence is simulated, the findings should be interpreted as an analytical demonstration rather than empirical evidence.

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Journal Info

Abbrev

productivity

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Management Studies and Business Journal (PRODUCTIVITY) reviewed covers theoretical and applied research in the field of Management and Business. Priority is given to those articles which satisfy the main scope of the journal, and have an impact in the research areas of interest. PRODUCTIVITY Journal ...