Abstract

The sudden changes in market conditions and/or unexpected events are shown as reasons for the poor performance of the businesses in the dynamic market environment. In fact, such an explanation is a response of managers to conditions and activities beyond their control. However, the real reason is the lack of development of resource-based dynamic capabilities in choosing the strategy that best suits the internal characteristics of the firm. The reason lies in the fact that developing and activating the capabilities firms have offers the flexibility to maintain superior performance-based competitive advantage as a result of the basic abilities they can achieve in the long-term. This study covers an experimental analysis to determine the effects of dynamic resources based capabilities (organizational resources, organizational capabilities, and relational capabilities) of manufacturing firms located in Ankara City on sustainable firm performance. In this context, data was collected via questionnaire technic through interviews with 400 firm managers and validity of the model was tested  using partial least square method.. As a result, it was observed that dynamic resource-based capabilities had a direct and positive effect on sustainable firm performance.