Abstract

Dynamic capabilities (DC) have been extensively explored in achieving sustained competitive advantage. Their further fragmentation in the first-order and second-order dynamic capabilities opens up new avenues for business strategy researchers. This study uses this hierarchy lens in the domain of alliance portfolio management. Organizational Learning Process (OLP) as a second-order dynamic capability/higher-order DC helps firms to achieve alliance portfolio success through first order DCs i.e. Portfolio Coordination (PC), Partnering proactiveness (PP), Interorganizational coordination (IC) and Relational Governance (RG) as Alliance portfolio management capabilities. 327 out of 500 survey questionnaires were received from firms having multiple alliances (alliance portfolio). PLS-SEM was used to find the results that show the significant and valid indirect effect of RG, IC & PC on the relationship of OLP and APP. This study not only contributed to the theoretical frame of DCs by adding empirical evidence of its process approach of hierarchy but also by helping practitioners comprehend this complex labyrinth to ultimately attain success in this dynamic environment.