Businesses environment in contemporary times is complex and uncertain. The unpredictable changes, the disruptive consequences and discontinuity events are likely to impact a company. The events like Covid -19 have motivated companies to imbibe sustainability in their functioning. The companies have acknowledged the significance of development of sustainable dynamic capabilities which enable them to renew and modify their competencies as per the requirement of environment changes and to have a sustainable competitive lead. This study is an attempt to develop a scale for measurement of Sustainable Dynamic Capabilities of the firm. The study further examines empirically the impact of Sustainable dynamic capabilities on the firms profit performance. The profit performance is measured on three dimensions- financial performance; operational performance and market performance. The empirical investigation was conducted through a questionnaire survey of 139 manufacturing companies. The results have indicated that sustainable dynamic capabilities have a positive influence on firm’s economic performance. The study contributes academically to the body of knowledge of Sustainable Dynamic Capability building and also provides a blue print to practicing managers to measure the level of sustainable dynamic capabilities developed in their company.
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