International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187 62 April M. Padilla and Luzviminda An Abacan, “Effects of Organizational Resource Capabilities to Competitive Advantage Potential of Manufacturing Companies in Batangas Province,” International Journal of Multidisciplinary Research and Publications (IJMRAP), Volume 6, Issue 2, pp. 62-72, 2023. Effects of Organizational Resource Capabilities to Competitive Advantage Potential of Manufacturing Companies in Batangas Province Ms. April M. Padilla 1 , Ms. Luzviminda An Abacan 2 Batangas State University Pablo Borbon Campus, Rizal Ave., Batangas City, Philippines Email address: 20-54334@g.batstate-u.edu.ph; luzviminda.abacan@g.batstate-u.edu.ph Abstract— Resource Capabilities has a fundamental role in a company’s Competitive Advantage Potential. In this study, the researcher assessed the relationship between resource capability and competitive advantage in the manufacturing sector. Descriptive and Quantitative Research Designs have been used since both are most appropriate to assess the effect of resource capabilities on competitive advantage potential of manufacturing companies in Batangas province. A total of 38 rubber and plastic manufacturing companies were identified as the subjects of this study. The findings of the research revealed that the competitive power in terms of valuable had a significant positive effect on competitive advantage while other resources in terms rare, physical and financial resource capabilities had a significant effect; on realized competitive advantage the human and physical resource capabilities; on inimitable the human resource capabilities; and on non-substitutable the human and financial resource capabilities. A sustainable development program was proposed to address the sustainability of companies’ competitive advantages. Keywords— Resource Capabilities, Competitive Advantage, Manufacturing and Sustainable Development Program. I. INTRODUCTION The global economic climate is evolving quickly. Such factors as shifting consumer and investor needs, escalating product- market competition, and globalization define the transition. Organizations must continuously enhance their performance to compete successfully in this context. And being competitive is key to in surviving these challenges. The manufacturing industry is still of utmost importance to both the developing and developed countries. More than half of the Philippines' industrial sector is made up of the manufacturing industry, which also contributes over a quarter of the nation's Gross Domestic Product (Catalano & Kailahun, 2022). The employment, income, and output multipliers in the manufacturing industries are higher than those in the agriculture and service sectors. Taking all these factors into account, the Philippines is increasing the manufacturing sector's competitiveness to achieve equitable and sustainable national growth. Further, manufacturing companies in Batangas Province face unique difficulties and opportunities that affect their competitive advantage. As of August 31, 2021, the province has 15 operational Special Economic Zones, where most of the export manufacturing companies are located. As of November 2022, there are 183 export manufacturing enterprises on the PEZA list, representing 21 different types of export manufacturing companies. The province has a strong industrial foundation, with enterprises operating in a wide range of industries, including rubber and plastic production, electronics, fabricated metal, automobile component manufacturing, and many more. Rubber and plastic product manufacturing had the most companies on the list, with 42, followed by fabricated metal products and electrical machinery and apparatus production, which had 35 and 22 on the list. The number stated was solely for the original sort of projects they are operating; additional projects, amendments, and improvements were not included. Rubber and plastic product manufacturing were place within Lima's SEZ technological center and FPIP. However, this manufacturing companies face enormous hurdles because of the changing nature of manufacturing, its market, and environmental conditions. Manufacturing companies face significant challenges due to the changing nature of manufacturing, market dynamics, and environmental factors. These obstacles include technology advances, changing market needs, complex supply chains, sustainability regulations, and a competent workforce. These organizations are trying to thrive in a competitive global market, and as a result, they must maintain and improve their competencies to achieve economic strength and stability. Furthermore, the study intends to evaluate how these resource capabilities might contribute to long-term competitive advantage, considering the industry's changing demands as well as the requirement for environmental and social responsibility. This paper also wants to address the issue of whether firms are aware of which of their available resource capabilities offer them a competitive advantage in their industry. Recognizing that a company must seek a comprehensive understanding of its assets and capabilities is critical. This understanding serves as a foundation for selecting a strategy that capitalizes on an organization's primary advantages. The researcher believes that the study is vital to determine the current internal state of these industrial organizations. It will help them discover the areas where they need to improve to keep their operations stable. II. METHODS The researcher used Descriptive Research Method and Quantitative Research Method as research designs of this study since both are most appropriate to assess the effects of