Employee Empowerment and Sustainable Competitiveness in Manufacturing Firms: Integrating Resource-Based and Dynamic Capability Perspectives

Abstract

This study examines the relationship between employee empowerment and sustainable competitiveness in the food and beverage manufacturing industry through the lenses of the Resource-Based View (RBV) and Dynamic Capability perspectives. Although employee empowerment has been widely associated with organisational success, comparatively limited attention has been devoted to its relationship with operational dimensions of competitiveness in manufacturing firms within emerging economies. Using cross-sectional survey data collected from 277 employees of the five largest food and beverage manufacturing companies in Southwest Nigeria, the study investigates employee empowerment as a multidimensional construct comprising structural and psychological components. Sustainable competitiveness is operationalised through cost leadership, product quality, on-time delivery, and flexibility. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that employee empowerment is positively associated with all four dimensions of competitiveness. The strongest associations were with flexibility, followed by product quality and on-time delivery. The association with cost leadership was relatively weaker. These findings indicate that employee empowerment might be particularly relevant to adaptability-oriented capabilities in manufacturing environments. The study contributes to the literature by integrating Resource-Based View and Dynamic Capability perspectives and provides insights into the importance of workforce-related capabilities in aiding operational competitiveness in manufacturing firms operating under resource-constrained conditions.