Dynamic capabilities in project-based firms operating across sub-Saharan Africa

Abstract

This qualitative study investigates the dynamic capabilities (DCs) that enable project-based firms to maintain operations across sub-Saharan Africa, a region characterised by institutional voids and complexity. Since existing DC frameworks are mainly developed for stable institutional contexts, little is known about how volatile environments influence DC development, especially for project-based firms operating through temporary, fragmented operations. Using an interpretivist philosophy and an exploratory approach, semi-structured interviews were carried out with key decision-makers from successful project-based firms working across multiple sub-Saharan African countries. Inductive thematic analysis identified four interconnected DCs crucial for sustained operations: relational intelligence capability, strategic partnership management, adaptive human capital systems, and decentralised operations and learning structures. The results challenge traditional DC classifications, indicating that capabilities deemed dynamic and vital for competitive advantage in stable markets are simply necessary for survival in sub-Saharan Africa. The study shows that project-based firms resolve the temporary-permanent dilemma by embedding knowledge within mobile core staff instead of rigid structures and by utilising flat organisational hierarchies with short feedback loops. This research contributes to DC theory by offering context-specific insights for institutionally complex environments and provides practical guidance for project-based firms aiming to establish sustainable operations in sub-Saharan Africa.