The moderating effect of religiosity on resourcecapability- competitive advantage interaction: Empirical evidence from Sri Lankan agribusiness farm owners

Abstract

Purpose – The purpose of this paper is to investigate the moderating effect of religiosity of farm owners on the resource-capability-competitive advantage interaction. Design/methodology/approach – A self-administered structured questionnaire was developed to collect data from farm owners who possess the experience in commercial cultivation of three main minor export crops in Sri Lanka. Findings – The results of linear regression analysis on 456 responses received suggest that the religiosity of farm owners significantly moderates the relationships between resources, capabilities and competitive advantage of the minor export crop farms, confirming the study hypotheses. Research limitations/implications – Future studies should consider the specific impact of different religious affiliations, traits and/or precepts of the farm owners. In addition, educational level, income level and mental capacity of the farm owners should be considered too since they may form part of the observed relationships. Originality/value – The study has addressed the gap in literature by highlighting the potential of religiosity in the interaction between resources, capabilities and competitive advantage. From the practical standpoint, besides providing some directions to the farm owners, the results also benefit different stakeholders such as policy makers, government and local communities in suggesting and implementing appropriate measures with regard to selecting suitable resources and integrating them with proper capabilities for greater competitive advantage of the agribusiness sector.