Vol: 16, Issue: 2 2026

Page: 37-43

The Role of Innovation in Achieving Competitive Advantage in Startups: A Dynamic Capabilities Perspective

Dr Amatul Baseer

Received Date: 2026-03-18

Accepted Date: 2026-04-23

Published Date: 2026-04-25

http://doi.org/10.37648/ijtbm.v16i02.003

This study examines the role of innovation in achieving competitive advantage in startups, emphasizing the mediating role of dynamic capabilities. Drawing on the resource-based view (RBV) and dynamic capabilities theory, a conceptual model is developed and empirically tested using a simulated dataset of 300 startups. Regression and structural equation modeling (SEM) techniques are applied to analyze relationships among innovation capability, dynamic capabilities, and competitive advantage. The findings indicate that innovation significantly enhances competitive advantage, but its effect is partially mediated by dynamic capabilities. The study contributes to theory by integrating RBV and dynamic capabilities into a unified framework and provides practical insights for startup strategy.

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