What are the benefits of possessing a competitive advantage?
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| Papers (8) | Insight |
|---|---|
29 Citations | Research limitations/implications This study contributes to our knowledge that competitive advantage is neither a necessary nor a sufficient condition for superior performance. |
38 Citations | Complex competitive advantage conditions contribute indirectly to high performance outcomes. |
| Competency, therefore, is a central issue for managers seeking competitive advantage. | |
53 Citations | This has both theoretical and practical consequences for managing toward competitive advantage and requires a new approach to management, control, and organization. |
67 Citations | Research limitations/implications – The findings establish the hypothesis that senior managers are not aware of the concept of competitive advantage. |
29 Citations | In addition, this study provides empirical evidence of the reasons, underpinning the relationship pattern of competitive advantage without superior performance as well as the relationship pattern of superior performance without competitive advantage. |
| We also show that these methodologies open up new avenues in research on competitive advantage. | |
| This framework provides insight to an incomplete picture of competitive advantage in the extant literature. |
Related Questions
What is competitive advantage?5 answersA competitive advantage in business refers to the attribute that enables an organization to outperform its competitors. This advantage can stem from various factors such as access to natural resources, skilled labor, geographic location, high entry barriers, and new technology. Achieving a competitive advantage is a fundamental goal of business strategy, where a company offers better solutions or similar solutions at lower prices compared to competitors. The concept of competitive advantage has evolved to encompass the efficiency and innovation within a firm's cultural environment, leading to economic success through effective competition. Porter's value chain framework further dissects a company into activities that contribute to competitive advantage by understanding cost drivers, buyer value sources, and interactivity between activities, suppliers, and customers.
Can competitive advantage promote performance?5 answersCompetitive advantage can promote performance in various ways. Entrepreneurial marketing, as a form of competitive advantage, has a direct and indirect effect on marketing performance. Additionally, environmental performance, corporate image, and corporate social performance, when combined with competitive advantage, can positively impact economic performance. The achievement of price, product, and service advantages can lead to increased market performance, with service advantage having a particularly strong effect. Furthermore, the requirements of marketing performance play a significant role in enhancing competitive advantage, leading to improved performance outcomes. These findings suggest that competitive advantage can be a crucial factor in promoting performance across different industries and contexts.
What is competitive advantage?5 answersA competitive advantage in business refers to an attribute that allows an organization to outperform its competitors. It can include factors such as access to natural resources, highly skilled labor, geographic location, high entry barriers, and access to new technology. Achieving a competitive advantage means providing a better solution or offering a similar solution at a lower price than competitors. Michael E. Porter, in his book "Competitive Advantage: Creating and Sustaining Superior Performance," identified two basic types of competitive advantage: cost strategy and differentiation strategy. Competitive advantage is also influenced by a firm's cultural environment, which fosters improvement and innovation. It is not only about individual activities but also about how activities relate to each other, suppliers, and customers. Overall, competitive advantage is a concept that helps businesses understand how to stand out and succeed in a competitive market.
How can companies maintain a competitive advantage?3 answersCompanies can maintain a competitive advantage by focusing on their entrepreneurial competencies and strategic assets. Entrepreneurial competencies play a crucial role in determining competitive advantage, and companies should identify and leverage their competencies to differentiate themselves from competitors. Strategic assets, which are intangible and hard to replicate, are key to creating and sustaining competitive advantage. However, these assets are often not reflected in financial statements, so companies should provide additional information about their strategic assets in their earnings conference calls and annual reports. Additionally, companies can enhance their competitive advantage through innovativeness and the development of new products, technologies, and business models. Organizational resilience and learning also contribute to sustained competitive advantage, with environmental dynamics playing a moderating role. By focusing on these factors, companies can maintain their competitive advantage in a dynamic and competitive market.
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