International Journal of Global Business and Competitiveness

Firm develops, deploys and integrates internal capabilities into practices to enhance competitiveness. Drawing on resourcebased view, we examined the relationship between firm capabilities, practices and competitiveness. Variation in firm competitiveness is visible through an effective deployment of its available capabilities, and the way it differentiates from others. Capability building and its optimum deployment into practices establishes a firm better than its competitors. A research framework is developed to ascertain that firms’ competitiveness can be achieved through an effective deployment of capabilities into practices. This relationship, however, is dynamic and gets affected by competitive intensity very much external to firm. We measured firm competitiveness through financial-, customer- and efficiency performance. Using a sample of 154 Australian firms, we examined the influence of capability and practices on firm competitiveness under competitive situation. Structural equation modeling (SEM) via AMOS18 was employed to analyse the survey data. We found that competitive intensity is positively associated with capability; capabilities are positively associated with practices; and practices are positively associated with firm competitiveness. Managers who are confident of degree of competitive intensity tend to build up firm level capabilities. Further, a focus on its deployment into practices is critical to enhance competitiveness. The paper ends up with future studies and limitations.