Showing papers on "Competitive advantage published in 1991"

Exploration and Exploitation in Organizational Learning

Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.

The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

Abstract: Recent contributions to strategic management and the theory of the firm collectively known as the "resource-based view of the firm" provide illuminating insights into the sources of profitability and the nature of competitive strategy. This article argues that internal resources rather than the market environment should provide the foundation for a firm's strategy. On the basis of an analysis of the relationships among resources, capabilities, conpetitive advantage, and profitability, this article advances a framework for a resource-based approach to strategy formulation.

Firm Resources and Sustained Competitive Advantage

Abstract: Explores the link between a firm's resources and its sustained competitive advantage. For purposes of this analysis, a firm is considered to have a sustained competitive advantage when it is implementing a value creating strategy that no competitor is implementing and when these competitors are unable to duplicate the benefits of this strategy. Strategic resources are assumed to be both heterogeneous and immobile. Value, rareness, imitability, and substitutability are considered in evaluating how useful these firms' resources are for generating sustained competitive advantage. Using the framework developed, three different applications are considered: strategic planning, information processing, and positive reputations. This framework for evaluating sustained competitive advantage can also be used to examine the relationship between strategic management and other disciplines including social welfare, organization theory and behavior, and firm endowments. This analysis leads to the conclusion that firms cannot expect to purchase sustained competitive advantage on the open market, but rather, these firms need to look to resources that are rare, imperfectly imitable, and non-substitutable resources already controlled by the firms. (SRD)

Managing cultural diversity: implications for organizational competitiveness

Abstract: Executive Overview The recent business trends of globalization and increasing ethnic and gender diversity are turning managers' attention to the management of cultural differences. The management literature has suggested that organizations should value diversity to enhance organizational effectiveness. However, the specific link between managing diversity and organizational competitiveness is rarely made explicit and no article has reviewed actual research data supporting such a link. This article reviews arguments and research data on how managing diversity can create a competitive advantage. We address cost, attraction of human resources, marketing success, creativity and innovation, problem-solving quality, and organizational flexibility as six dimensions of business performance directly impacted by the management of cultural diversity. We then offer suggestions for improving organizational capability to manage this diversity.

Contemporary Strategy Analysis: Concepts, Techniques, Applications

Abstract: The concepts of strategy industrial analysis - assessing profit prospects intra-industry analysis - segmentation and competitor appraisal analyzing resources and capabilities the nature and sources of competitive advantage competitive advantage - analyzing cost advantage competitive advantage - analyzing differentiation advantage competitive advantage and strategy formulation in different industry environments - classifying industries strategy formulation and implementation in emerging and technology-based industries strategy formulation and implementation in mature industries strategy formulation and implementation in global industries corporate strategy - diversification corporate strategy - managing the diversified corporation strategies for the 1990s.

The Strategy Process: Concepts, Contexts, Cases

Abstract: Acknowledgements. Introduction. I. STRATEGY. 1. The Strategy Concept. Strategies for Change. Five P's for Strategy. 2. The Strategist. The Manager's Job. Good Managers Don't Make Policy Decisions. Strategic Intent. 3. Formulating Strategy. The Concept of Corporate Strategy. Evaluating Business Strategy. Core Competencies and Strategic Outsourcing. 4. Strategy Analysis. How Competitive Forces Shape Strategy. Generic Business Strategies. 5. Strategy Formation. Logical Incrementalism: Managing Strategy Formation. Crafting Strategy. The Honda Effect. I. CASES. Edward Marshall Boehm Inc. Genentech, Inc. MacArthur in the Philippines. New Steel Corp. Intel Corporation. Apple Computer, Inc.(A) Apple Computer 1992. Microsoft Corporation (A). E&J Gallo Winery. The IBM 360 Decision: From Triumph to a New Industry. The Transformation of AT&T. Nintendo Co., Ltd. Magnetic Levitation Train. Ford: Team Taurus. Argyle Diamonds. II. ORGANIZATION. 6. Dealing with Structure and Systems. Strategy and Organization Planning. The Structuring of Organizations. New Forms of Organizing. Collaborating to Compete. 7. Dealing with Culture and Power. Ideology and the Missionary Organization. Buidling Structure in Manager's Minds. Politics and the Political Organization. Competitive Maneuvering. Who Should Control the Corporation? 8. Manageerial Styles. Artists, Craftsmen, and Technocrats. The Leader's New Work: Building Learning Organizations. Middle Managers to "Do Things Right." II. CASES The New York Times Company. Matsushita Electric Industrial Company. The Hewlett Packard Company. TCG/Thermo Electron. Microsoft Corporation (B). NovaCare, Inc. Orbital Engine Company. Anderson Consulting (Europe): Entering the Business of Business Integration. Polaroid Corporation. Exxon Corporation 1994. Sony Corporation: Innovation System. III. CONTEXTS. 9. The Entrepreneurial Context. The Entrepreneurial Organization. Competitive Strategy in Emerging Issues. How Entrepreneurs Craft Strategies That Work. 10. The Mature Context. The Machine Organization. Cost Dynamics: Scale and Experience Effects. 11. The Professional Context. The Professional Organization. Balancing the Professional Service Firm. 12. The Innovation Context. The Innovative Organization. Managing Innovation: Controlled Chaos. 13. The Diversified Context. The Diversified Organization. Generic Corporate Strategies. Managing Large Groups in the East and the West. From Competitive Advantage to Corporate Strategy. 14. The International Context. Global Strategy...In a World of Nations? Managing Across Borders: New Organizational Responses. 15. Managing Change. Beyond Configuration. Convergence and Upheaval. The Crescendo Model of Rejuvenation. III. CASES. Sony Entertainment. Vanguard Group, Inc.(A) The Battle for Paramount Communications, Inc. Honda Motor Company 1994. The Pillsbury Company. Cadbury Schweppes, P.L.C. SAS and the European Airline Industry. Peet, Russ, Anderson & Detroit. Nintendo of America. Mountbatten and India. Case Notes. Bibliography for Readings. Subject Index. Name Index.

Sustaining IT advantage: the role of structural differences

Abstract: Information systems are strategic business tools, frequently essential to a firm and central to its competitive strategy. Their importance is now acknowledged. But information technology-equipment and services-is available to all firms, and most applications can be duplicated. The copying firm often enjoys the advantages of newer and better technology, learns from the experience of the innovator, and thus can offer comparable services at lower costs. When can an information technology-based strategy confer sustainable competitive advantage? The answer may lie with the role of strategic resources in explaining the allocation of economic benefits from an IT innovation. Specifically, information technology can lead to sustainable competitive advantage when it is used to leverage differences in strategic resources. This may be true even in cases where duplication is relatively easy and there are few dynamic effects, like first-mover advantages, to protect the innovation. An important characteristic of IT is its ability to manage interactions among economic activities; the economic theory can be used to establish a link between this characteristic of IT and shifts in resource values. This allows us to identify and examine some opportunities for deploying IT to leverage structural resource differences among firms, including differences in vertical integration and diversification as well as differences in the quality and organization of key resources.

A resource‐based analysis of global competition: The case of the bearings industry

Abstract: This paper critically examines the contribution of aspects of the resource-based view of the firm to global competition in particular, and to strategic management in general. Three concepts—core competence, organizational capability, and administrative heritage—are defined and compared with the current mainstream economic tradition of strategy. The value of these concepts in analyzing and explaining competitive strategy is determined through a detailed field-based case study of three firms in the worldwide bearings industry. It is found that the resource-based view of the firm complements economic analysis, and that both are essential to a complete understanding of global strategy.

Organizational Information Processing, Competitive Responses, and Performance in the U.S. Domestic Airline Industry

Abstract: This study investigates how firms build competitive advantage by focusing on the actions and responses of rivals in the U.S. domestic airline industry. We identified four attributes of competitive ...

Strategic information systems: myths, reality and guidelines for successful implementation

Abstract: There have been a number of claims made in recent years with respect to the utilisation of information technology as a source of competitive advantage and as a means of enabling and directing strategic moves. This paper presents evidence to suggest that, so far, identification and successful implementation of strategic information systems has arisen as often as not from happy circumstance rather than as a result of a process of strategy formulation. Because of this, many companies run the risk of missing out on an opportunity to compete on an equal footing with their international rivals in increasingly competitive and global markets. In addition, the paper warns that the process of identifying and implementing strategically significant information systems is a complex task, the result of which represents considerable risk to companies should there be inadequate preparedness on their part. In view of this, it presents guidelines which may help in improving management understanding of the process; deciding on an appropriate information systems strategy for a particular company/context, and successfully implementing strategic information systems. A contingent, socio-technical approach to strategic information systems planning is proposed.

Output Flexibility-A Competitive Advantage for Small Firms

Abstract: We explore three theoretical perspectives that look at output flexibility as a competitive advantage for small firms as was initially described by Stigler (1939). First, small firms are more willing to fluctuate their output. As a result: second, small firms can trade cost inefficiency with volume flexibility to increase their profits; third, output flexibility is a more viable source of competitive advantage in volatile and capital-intensive industries, and less viable in profitable industries. Indeed, the empirical analysis of over 3000 companies representing 83 industries during the 1979-87 time period supports our theoretical perspectives. Future research directions that combine firm flexibility and other strategic dimensions are discussed in the context of providing a general strategic framework for small firms competing against large ones.

Partnering as a Focused Market Strategy

Abstract: Partnership-building efforts, even when sought by a customer firm, may not be in the best interests of a supplier firm. This article presents a comprehensive, strategic approach that offers managers guidance on decisions about which market segments and individual customer firms to target for close, collaborative relationships. Firms can gain competitive advantage by augmenting a supplier's product offering for transactional customers.

Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life

Abstract: A major bestseller in Japan, Financial Times Top Ten book of the year, Book-of-the-Month Club bestseller, and required reading at the best business schools, Thinking Strategically is a crash course in outmaneuvering any rival. This entertaining guide builds on scores of case studies taken from business, sports, the movies, politics, and gambling. It outlines the basics of good strategy making and then shows how you can apply them in any area of your life.

Exploration and Exploitation in Organizational Learning

Abstract: Examines the correlation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. Also discusses the difficulty in balancing resource management between gaining new information about alternatives to improve future returns (i.e., exploration) and using information currently available to improve present returns (i.e., exploitation). Two models which evaluate the formation and use of knowledge in organizations are developed. The first is a model of mutual learning in a closed system having fixed organizational membership and stability. The second is a model which considers the ways in which competitive advantage is affected by knowledge accumulation. The analysis indicates that the choice to rapidly develop exploitation over exploration might be effective in the short term, but is potentially detrimental to the firm in the long term. (SFL)

Formulation, Implementation, and Control of Competitive Strategy

Abstract: Contemporary research in strategic management, with an emphasis on conceptual tools and skills created by scholars and practitioners in the field are evident throughout this 12-chapter text-only book. "Formulation, Implementation, and Control of Competitive Strategy" is the softcover, text-only version of Pearce and Robinson's "Strategic Management". Pearce and Robinson present a pedagogical model for instructors who desire quantitative analysis. The financial data available here should appeal to instructors and the strong coverage of "Business Week" material provides a currency to the text.

Organizational capability: creating competitive advantage

Abstract: Building better products or services, pricing goods or services lower than the competition, or incorporating technological innovation into research and manufacturing operations must today be supplemented by organizational capabilityl-the firm's ability to manage people to gain competitive advantage (Exhibit 1). To establish organizational capability, the business must adapt to changing customer and strategic needs by establishing internal structures and processes that influence its members to create organization-specific competencies. Employees become a critical resource for sustainable competitiveness.

Global Sourcing: A Development Approach

Abstract: The 1980s witnessed rapid competitive changes globally. As U.S. firms struggled to maintain world market share, they relied increasingly on international part sourcing to sustain competitiveness. As many U.S. firms became more experienced with international procurement, worldwide sourcing shifted from a reactive to a proactive strategy intended to provide a competitive advantage. This article analyzes the growth of international sourcing within the firm as a four-phase development process. It also presents a hierarchical progression of international to global sourcing strategies and the characteristics associated with each strategy.

Porter's ‘competitive advantage of nations’: An assessment

Abstract: Porter's Competitive Advantage of Nations is an important book which bridges the gap between strategic management and international economics while contributing substantially to both. Porter's analysis of the impact of national environment on international competitive performance demonstrates the potential for the theory of competitive strategy to rescue international economics from its slide into refined irrelevance, while simultaneously broadening the scope of the theory of competitive strategy to encompass both the international dimension and the dynamic context of competition. Nevertheless, the breadth and relevance of Porter's analysis have been achieved at the expense of precision and determinancy. Concepts are often ill defined, theoretical relationships poorly specified, and empirical data chosen selectively and interpreted subjectively.

Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy

Abstract: This paper presents a framework that links strategic MIS planning and business strategy and relates it to competitive advantage and company performance. To achieve this objective, the paper first delineates the dimensions of strategic MIS planning, focusing on both content and process issues. The notion of fit within dimensions, between sets of dimensions (process and content), and between MIS planning and competitive strategy is also introduced. Next, employing the Miles-Snow typology of business strategy, the paper posits normative differences in the dimensions of strategic MIS planning along different business (or competitive) strategies. The implications of our study for both decision makers and scholars are discussed. Propositions that tie competitive strategy, strategic MIS planning, and company financial performance are then presented. The paper concludes by providing direction for future research.

Network evolution, entrepreneurial success, and regional development

Abstract: Social networks of entrepreneurs are theorized as evolving from an idea generating stage, to a business development stage, and finally to a strategic stage. A model of network evolution that relates changing network activity to the increasing complexity facing the entrepreneur is presented in this paper. A field study of premium wineries, operated by their founding entrepreneurs, is used to (1) assess the impact of social networks in the identification of entrepreneurial opportunity, (2) examine the development and use of networks in establishing the business, and (3) explore the role of interorganizational networks in startup firms. The results suggests that both broad social and interorganizational strategic networks are important to successful startup and ongoing competitive advantage. The results suggest that public policy might be better directed toward the enhancement of this type of network activity, rather than the traditional support provided to encourage business formation.

Strategic Fit and the Societal Effect: Interpreting Cross-National Comparisons of Technology, Organization and Human Resources:

Abstract: The neo-contingency framework, responding to criticism against previous contingency thinking, appears to be potentially capable of serving as a basis for interpreting research in the tradition of the societal effect approach. This hypothesis is further developed using existing literature. The hypothesis is then examined by looking at the results of various cross-national comparisons of the organizational, human resources and strategic contexts of technical change in manufacturing. This leads to a reflection on the underlying factors influencing competitive advantage in national sectors or industries, and to a proposal on how distinct and different theoretical approaches can be conceived to be related to one another.

Strategy : seeking and securing competitive advantage

Abstract: What makes up an effective strategy? This collection of "Harvard Business Review" articles offers insight and practical advice from the leaders in the field: Michael Porter, Kenichi Ohmae, Steven Wheelwright, Gary Hamel, and C.K. Prahalad, among others. They show how advantage can and should be extracted from many sources, from marketing and joint ventures to financial analysis. Strategy provides managers with the best thinking available on how to make the critical decisions that determine business success. It is a "Harvard Business Review" book.

Upgrading New Zealand's Competitive Advantage

Abstract: In an attempt to understand current problems afflicting the economy of New Zealand, this volume sets out a rigorous framework for economic development which draws on the findings of the Porter Project, a research project which examined the sources of New Zealand's competitive advantage. The Project, which examined the 20 most successful export industries in the country by means of a microeconomic approach, is examined in detail.

Team Organization: An Enduring Competitive Advantage

Abstract: APPLYING GROUP RESEARCH TO THE WORKPLACE Moving to the Team Organization The Team Organization Model Theory and Research: Team Organization Model Perspectives on Organizational Groups TEAMWORK FOR EFFECTIVE ORGANIZATIONS Teams for Continuous Improvement Teams for Commitment Leadership CREATING TEAMWORK Envision Creating Unity Empower Explore Reflecting TOWARD AN INTEGRATED COMPANY Labor-Management Relations Forging Synergy Becoming a Team Organization Index

Brand building in the 1990s

Abstract: Claims that the time has come to consider how to apply marketing principles and practices in an increasingly competitive and rapidly changing environment. Argues that as it becomes increasingly difficult to sustain a comparative advantage over competitors it will become increasingly important to position organizations as “brands” in the minds of actual and potential customers. Examines the nature of brand building and methods for building company brand and concludes that brand building provides the organization with limitless possibilities for growth.