Istiqamah Absorptive Capability, Dynamic Capability, And Organizational Performance: An Islamic Strategic Management Review For Halal Food And Beverage MSMES

Abstract

This study examines the strategic role of Istiqamah Absorptive Capability in enhancing dynamic capability and organizational performance in halal food and beverage MSMEs. Integrating Resource-Based Theory (RBT), Dynamic Capability Theory (DCT), absorptive capability, and Islamic strategic management, the study explains how organizations sustain competitive advantage in dynamic environments. Using a literature review approach from Scopus, Web of Science, ScienceDirect, Emerald, MDPI, and Google Scholar, the findings show that absorptive capability supports innovation, organizational learning, adaptability, and competitive advantage. However, prior studies report inconsistent relationships between knowledge sharing, absorptive capability, and organizational performance. To address this gap, the study proposes Istiqamah Absorptive Capability, defined as an organization’s consistent and ethically grounded ability to acquire, assimilate, transform, and utilize knowledge continuously based on Islamic values. This capability strengthens sustainable learning, ethical decision-making, innovation, and long-term organizational performance. In halal MSMEs, it enables organizations to transform halal certification, market changes, and external pressures into strategic opportunities that improve competitiveness, operational effectiveness, consumer trust, and business sustainability. The study contributes theoretically by integrating Islamic values into dynamic capability and absorptive capability literature.