Dynamic capability in an under-researched cultural environment

During the past few years, dynamic capability (DC) has been considered as an important issue in banking industry. This paper presents a survey on dynamic capability and its role on reaching sustainable competitive advantage (SCA) within Mellat bank of Iran (MBI). A valid research instrument is utilized to conduct a survey among 150 managers from MBI. The study utilizes structural equation modelling to examine different hypotheses based on an integrated model of DC and SCA. According to literature studies, expert opinions and exploratory factor analysis, DC is classified into sensing, learning, reconfiguration, and coordination. Furthermore, SCA of the banking industry is classified into three dimensions: market, customer, and financial performance. The results indicate that DC had the greatest effect on the market centered, while it had the least influence on the customer centered.