ADAPTIVE CAPABILITIES, COMPETITIVE ADVANTAGE AND COMPANY’S PERFORMANCE

Purpose of this study is to identify the relationship between adaptive capabilities, competitive advantage and business performance. Relevant theoretical and empirical findings are analyzed with the aim of developing conceptual model that integrates researched variables. Proposed model is empirically tested and verified on a sample of Croatian companies from all industries. Results indicate that there is direct effect of adaptive capability on competitive advantage, but also indirect effect, mediated by performance. The research results highlight the importance of the adaptive capabilities, i.e. customer analysis, market analysis, competitor analysis, allocation of resources and quick response to market changes, for company’s success.