Competitive Advantage in Management Consulting Industry of Iran and Germany: The Role of Dynamic Capabilities

Based on the capability-based theory of the firm, Sustainable competitive advantage is rooted in dynamic capabilities. In this study, some Iranian and German firms which have a stable performance over the past years are compared. The similarities and differences of these firms regarding their dynamic capabilities are discussed. The process through which these capabilities build new trajectories is also explained. Multiple case study method was used to conduct the research. Four Iranian and four German companies were studied. Seventeen managers were interviewed, and organizational documents such as the minutes of meetings, performance reports, strategic plans, and website data were analyzed. The results show that although the microfoundations of dynamic capabilities can have similarities with each other, the dynamic capabilities themselves, which are embedded in managerial decision-making and organizational routines, are unique. These capabilities are formed and developed based on environmental requirements and the company's history. Learning the complexities of competing in a foreign market can help Iranian management consulting firms to enter these markets with better understanding.