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Capabilities and Resources for Value Creation and Sustainable Competitive Advantage: A Study of the Chinese Video Game Industry

Author

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  • Xiaohong Shi

    (Department of Decision Science, Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur 50603, Malaysia)

  • Suhaiza Zailani

    (Department of Decision Science, Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur 50603, Malaysia)

Abstract

Amidst rapid technological progress and increasing regulatory demands, the Chinese video game industry has undergone rapid changes that have provided a fruitful context for examining corporate competencies. Drawing on the Resource-Based View (RBV) and Dynamic Capability View (DCV) theories, this study investigates how firm capabilities (FC) and firm resources (FR) contribute to value creation (VC), which subsequently influences firm performance (FP) and sustainable competitive advantage (SCA). A quantitative research approach was employed, utilizing the data collected from a questionnaire survey of 241 video game firms. The data analysis was conducted using SmartPLS4 software, revealing that FC/FR has a significant effect on VC, which, in turn, mediates the relationship between FC/FR and FP. This study identifies three dimensions of VC—customer value (CV), employee value (EV), and shareholder value (SV)—with EV showing stronger mediating effects than CV and SV. It then uses the BSC framework to assess FP’s intermediary role in bridging VC with SCA through the integration of both financial and non-financial performance indicators relevant to the dynamic video game industry. These results have strong theoretical and practical implications, offering valuable guidance for fostering sustainable development. Specifically, they provide actionable insights for managers to enhance value creation and firm performance while also offering policy recommendations to support regulatory compliance and promote sustainable practices in China’s dynamic video game industry.

Suggested Citation

  • Xiaohong Shi & Suhaiza Zailani, 2025. "Capabilities and Resources for Value Creation and Sustainable Competitive Advantage: A Study of the Chinese Video Game Industry," Sustainability, MDPI, vol. 17(2), pages 1-26, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:605-:d:1566903
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    References listed on IDEAS

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