A Dynamic Capabilities Framework for Sustainable Competitive Advantage in Nigerian Conglomerates: Theoretical Synthesis and Empirical Validation

This study develops and empirically validates a dynamic capabilities framework for sustainable competitive advantage in Nigerian conglomerates, addressing a theoretical gap in the application of dynamic capabilities theory to diversified corporations in Sub-Saharan African institutional contexts. Existing dynamic capabilities frameworks, predominantly developed in Western market economies, inadequately account for the institutional voids and resource munificence constraints that characterise Nigeria's business landscape. Employing a mixed-methods sequential explanatory design, this research first uses structural equation modelling on panel data from 80 listed conglomerates over ten years, then deepens findings through in-depth interviews with 30 chief strategy officers. The framework integrates sensing, seizing, and reconfiguring capabilities with an original construct, institutional navigation capability, capturing firms' competencies in managing regulatory, political, and social institutional environments. Findings demonstrate that institutional navigation capability significantly amplifies the performance effects of classical dynamic capabilities, particularly during macroeconomic volatility periods. The panel data analysis confirms that sensing and reconfiguring capabilities are the most powerful predictors of sustained performance differentials. The qualitative phase reveals that conglomerate competitive advantage in Nigeria is deeply embedded in network-based resource access mechanisms that existing frameworks incompletely theorise. This study makes original theoretical contributions by extending dynamic capabilities theory with institutionally-grounded constructs, and provides a validated measurement instrument for Nigerian conglomerate strategy research. Keywords: dynamic capabilities, competitive advantage, conglomerates, institutional context, Nigeria.