Showing papers on "Competitive advantage published in 1992"
TL;DR: In this article, the authors argue that the analysis of intangible resources should play a major role in the strategic management process, by means of both theoretical reasoning and empirical evidence, and argue that sustainable competitive advantage results from the possession of relevant capability differentials.
Abstract: Sustainable competitive advantage results from the possession of relevant capability differentials. The feedstock of these capability differentials is intangible resources which range from patents and licenses, to reputation and know-how. A framework of intangible resources has been produced which formed the basis for a national survey of chief executives in the U.K. Some of the more significant findings of the survey were that: employee know-how and reputation are perceived as the resources which make the most important contribution to business success; and that for most companies operations is the most important area of employee know how. This article argues, by means of both theoretical reasoning and empirical evidence, that the analysis of intangible resources should play a major role in the strategic management process.
2,625 citations
Journal Article•
TL;DR: Using examples from Wal-Mart and other highly successful companies, Stalk, Evans, and Shulman of the Boston Consulting Group provide managers with a guide to the new world of "capabilities-based competition" in the 1990s.
Abstract: In the 1980s, companies discovered time as a new source of competitive advantage. In the 1990s, they will discover that time is only one piece of a more far-reaching transformation in the logic of competition. Using examples from Wal-Mart and other highly successful companies, Stalk, Evans, and Shulman of the Boston Consulting Group provide managers with a guide to the new world of "capabilities-based competition." In today's dynamic business environment, strategy too must become dynamic. Competition is a "war of movement" in which success depends on anticipation of market trends and quick response to changing customer needs. In such an environment, the essence of strategy is not the structure of a company's products and markets but the dynamics of its behavior. To succeed, a company must weave its key business processes into hard-to-imitate strategic capabilities that distinguish it from its competitors in the eyes of customers. A capability is a set of business processes strategically understood--for example, Wal-Mart's expertise in inventory replenishment, Honda's skill at dealer management, or Banc One's ability to "out-local the national banks and out-national the local banks." Such capabilities are collective and cross-functional--a small part of many people's jobs, not a large part of a few. Finally, competing on capabilities requires strategic investments in support systems that span traditional SBUs and functions and go far beyond what traditional cost-benefit metrics can justify. A CEO's success in building and managing a company's capabilities will be the chief test of management skill in the 1990s. The prize: companies that combine scale and flexibility to outperform the competition.
1,843 citations
TL;DR: A broadened perspective is presented that highlights the complexity of this phenomenon and suggests that first-mover status may or may not produce sustainable advantages because of a multiplicity of controllable and uncontrollable forces.
Abstract: Numerous conceptual and empirical studies advance the notion that first movers achieve long-term competitive advantages. These studies purport to demonstrate the presence of a systematic direct rel...
1,005 citations
TL;DR: The competitive advantage of nations has been studied extensively in the literature as mentioned in this paper, with a focus on the international competitiveness of companies and their ability to achieve competitive advantage in the modern global economy.
Abstract: the competitive advantage of nations the we chose a sample of industries for each nation that other nations represent a variety of population sizes represented the most important groups of competitive government policies toward industry social philoso industries in the economy the industries studied ac phies geographical sizes and locations, porter s competitive advantage of nations porter s 1990 competitive advantage of nations was heralded on publication as a book which could build a bridge between the theoretical literatures in strategic management and international economics and provide the basis for improved national policies on competitiveness, michael porter s competitive advantage and business history advantage 9 and the competitive advantage of nations 10 porter s farst book competitive strategy published in 1980 is an exhaustive look at strategy his context is the world of the late 1970s but the structure that he sets out is a very useful vehicle for the business historian the essence of formulating competitive strategy is relating a company to its environment 11 p 3, the porter s theory of competitive advantage starting from these premises porter identifies a system of determinants which is the basis for getting competitive advantages by the nations 2 the system of determinants the theory is based on the system of determinants called by porter diamond which consists of, competitive advantage of nations book by michael e now beyond its eleventh printing and translated into twelve languages michael porter s the competitive advantage of nations has changed completely our conception of how prosperity is created and sustained in the modern global economy porter s groundbreaking study of international competitiveness has shaped national policy in countries around the world, the competitive advantage of nations ideas and advice to investigate why nations gain competitive advantage in particular industries and the implications for company strategy and national economies i conducted a four year study of ten important, the competitive advantage of nations states and regions this presentation draws on ideas from professor porter s articles and books in particular the competitive advantage of nations the free press 1990 building the microeconomic foundations of competitiveness in the global competitiveness report world economic forum clusters and the new competitive agenda for companies and governments in on competition harvard business school press 2008 and ongoing research on clusters and competitiveness, pdf competitive advantage revisited michael porter on competitive advantage revisited michael porter on strategy and competitiveness article pdf available in journal of management inquiry 16 3 256 273 september 2007 with 10 927 reads, the competitive advantage of nations by michael e porter the competitive advantage of nations porter s concept of clusters or groups of interconnected firms suppliers related industries and institutions that arise in particular locations has become a new way for companies and governments to think about economies assess the competitive advantage of locations and set public policy, competitive advantage of nations michael e porter competitive advantage of nations michael e porter on amazon com free shipping on qualifying offers now beyond its eleventh printing and translated into twelve languages michael porter s i the competitive advantage of nations i has changed completely our conception of how prosperity is created and sustained in the modern global economy, competitive advantage university at albany there are two basic types of competitive advantage cost leadership and differentiation this book describes how a firm can gain a cost advantage or how it can differentiate itself it describes how the choice of competitive scope or the range of a firm s activities can play a powerful role in determining competitive advantage
900 citations
TL;DR: In this paper, it is shown that some organizational alignments do produce supernormal profits, independent of the profits produced by traditional industry and strategy variables, which is consistent with the resource view of the firm: to the extent that alignments result from skill, it is reasonable to regard alignment skill as a strategic resource capable of generating economic rents.
Abstract: In explaining financial performance variance, strategic management researchers and industrial organization economists have emphasized industry factors, market share, generic strategy, and strategic group membership, whereas organizational contingency theorists have emphasized alignments involving environment and internal structure. This study integrates these perspectives, testing the financial performance consequences of organizational alignments, in context with the effects of industry, market share, and strategy. In an empirical study in two manufacturing industries, it is shown that some organizational alignments do produce supernormal profits, independent of the profits produced by traditional industry and strategy variables. The results are consistent with the resource view of the firm: to the extent that alignments result from skill rather than luck, it is reasonable to regard alignment skill as a strategic resource capable of generating economic rents. The article suggests that, by focusing on industry and competitive strategy variables, contemporary industrial organization and strategy research has understated the role of organizational factors in producing sustainable competitive advantage.
877 citations
TL;DR: In this paper, a system model that integrates four components of a firm's "distinctive competencies" (managerial competencies and strategic focus, resource-based, transformation-based and output-based competencies) is proposed.
681 citations
TL;DR: In this article, the authors discuss the manner in which the improper use of outsourcing can destroy the future of a business, and how the proper use of outsourced services can help build competitive advantage.
Abstract: Executive Overview The improper use of outsourcing is playing an important role in the continuing competitive decline of many Western firms. Western managers often view outsourcing as a defensive operational measure. The approach tends to be incremental. A whole series of incremental outsourcing decisions, taken individually, may make economic sense, but collectively they may also represent the surrender of the business's capability to compete. However, properly understood and managed as an overall part of strategy, outsourcing can aid competitiveness. This article, based on the authors' research with firms in North America. Europe, and Asia, discusses the manner in which the improper use of outsourcing can destroy the future of a business, and how the proper use of outsourcing can help build competitive advantage.
555 citations
TL;DR: In this article, the authors present a strategy to discourage or delay a competitive move that is unchallenged or to which response is delayed, depending on the opponent's strategy and strategy.
Abstract: Competitive moves that are unchallenged or to which response is delayed are important weapons in a strategist's arsenal, so variables that discourage or delay response are of great interest. Using ...
542 citations
Book•
31 Jan 1992TL;DR: In this paper, the wealth of three nations and economic institutions of the United States were discussed. But the authors focused on the economic institutions and economic performance of the three nations, and did not consider the economic institution of the US.
Abstract: Acknowledgments Introduction: the wealth of three nations Part I. Economic Institutions and Economic Performance: 1. Business organization and competitive advantage 2. Institutional foundations of industrial dominance and decline 3. Organizations and markets in capitalist development Part II. Intellectual Foundations and Intellectual Constraints: 4. The theory and history of capitalist development 5. The making of the market mentality Part III. 'The Marvels of the Market' Versus 'The Visible Hand': 6. The innovative business organization and transaction cost theory 7. Lending the economic institutions of capitalism a visible hand Part IV. Overcoming Intellectual Constraints: 8. Business organization and economic theory 9. Rigor and relevance in economics.
502 citations
TL;DR: Generative learning as mentioned in this paper is a way for managers to learn how to adapt to change in an adaptive way, rather than a patterned response to events based on "old programming" (to return to the Zuboffs machine metaphor).
494 citations
TL;DR: In this paper, a framework for organizing and leading heavyweight teams is presented, and examples of companies that have made heavyweight teams a distinctive advantage in product development capability are presented, along with examples of organizations that have used heavyweight teams to achieve competitive advantage.
Abstract: Creating a distinctive advantage in the speed, efficiency, and quality of product developments is a major challenge for most firms. Achieving integration across functions lies at the heart of that challenge. While many authors recommend teams as a way to effectively manage development activities, realizing outstanding performance requires much more than simply naming members to a core team and designating a project head. A competitive advantage in product development capability requires fundamental changes in how work gets done; in the skills, capabilities, and tools team members bring to that work; in the support activities required from other groups inside and outside the organization; and in the responsibility and ownership taken by the project leader and core team for creating and executing the concept. This article lays out a framework for organizing and leading heavyweight teams and presents examples of companies that have made heavyweight teams a distinctive advantage.
TL;DR: In this paper, the authors link various characteristics of actions with the total number and the time lag of competitors' responses and found that responses are influenced by the characteristics of the actions that evoked them.
Abstract: A central question in competitive dynamics is whether a competitive response can be predicted. This study links various characteristics of actions with the total number and the time lag of competitors' responses. The hypothesized relationships were tested with a sample of competitive moves among U.S. airlines. The results suggested that responses are influenced by the characteristics of the actions that evoked them. Specifically, the total number of competitors affected by an action and the importance to these competitors of the markets under attack by the action increase the number of competitive responses. Strategic, as opposed to tactical, actions or actions which require substantial implementation efforts reduce the number and delay the timing of rivals' counteractions. Finally, contrary to prediction, competitors who have a high stake in the markets under attack by a competitive move react slowly.
TL;DR: In this paper, the authors show that companies with better in-house scientific research programs have exploited more effectively outside scientific information, and that company patents are positively correlated with the scientific publications of the firms even after controlling for the scale of R&D.
TL;DR: In this article, the authors examine four factors that shape the relationship between innovation and competitive advantage and compare the routes to corporate entrepreneurship (research and development units, intrapreneurshiplinternal ventures, external joint ventures and acquisition) in terms of these criteria.
TL;DR: In this paper, a hierarchy of available NPD acceleration approaches and potential benefits, limitations and significant challenges to successful implementation is presented, as well as potential benefits and limitations of these approaches.
TL;DR: This article argued that strategic planning does not satisfy the criteria for sustainable competitve advantage and that although it may produce economic value, it is easily imitated and may be substitutable.
Abstract: Since 1970, over forty empirical studies have examined the performance consequences of formal strategic planning. This line of research has drawn heavy criticism from reviewers on methodological grounds, and has produced confusing, apparently contradicatory results. This article reevaluates the planning-performance relationship from a resource perspective, arguing that strategic planning does not satisfy the criteria for sustainable competitve advantage-- although it may produce economic value, it is easily imitated and may be substitutable. The article suggests that previous studies produced inconsistent results because they did not account for the dissemination of strategic planning over time, or for industry differences in strategic planning factor markets. An empirical test in two industries funds that formal strategic planning and financial performance are unrelated in a 'planning equilibrium' industry, but positively related in an industry with strategic planning factor market imperfections.
TL;DR: In this article, the authors define the MNE as an organizational form and examine the research implications of these two environmental influences on four aspects of MNE internal organization: modes of entry abroad, configuration of activities, coordination and control, and competitive strategy.
Abstract: Multiple sources of external authority and multiple denominations of value are two distinguishing aspects of the environment faced by multinational enterprises (MNEs). After defining the MNE as an organizational form, we examine the research implications of these two environmental influences on four aspects of MNE internal organization: modes of entry abroad, configuration of activities, coordination and control, and competitive strategy. We present general propositions to guide future research and argue that multiple sources of authority and multiple denominations of value require cross-disciplinary research efforts in order to fully understand the MNE as an organizational form.
TL;DR: Watt et al. as discussed by the authors developed a conceptual framework to aid in linking purchasing to corporate competitive strategy and to other functional area strategies as well, which can be used to begin to integrate purchasing into overall corporate strategy.
Abstract: Charles A. Watts is an Assistant Professor of Management at Bowling Green State University. Dr. Watts received his D.B.A. degree from Indiana University. He has published articles in various professional journals, and is a previous Journal author. Kee Young Kim is Professor of Operations Management and Dean of the Graduate School of Business Administration at Yonsei University in Seoul, Korea. Dr. Kim received his Ph.D. degree from Washington University in St. Louis. He is the author of several books and numerous professional articles. Chan K. Hahn is Owens-Illinois Professor of Management at Bowling Green State University. He holds a Ph.D. degree from Ohio State University. Dr. Hahn is an active researcher in the field of purchasing/materials management, and is a previous Journal author. To compete effectively in the global marketplace, a firm must have a competent and strategically integrated purchasing organization. It is important that all functional area strategies and capabilities, including purchasing, be consistent with corporate competitive strategy. It is also critical that a company's suppliers have the capability to meet its strategic priorities. This article develops a conceptual framework to aid in linking purchasing to corporate competitive strategy and to other functional area strategies as well. The proposed model can be used to begin to integrate purchasing into overall corporate strategy. INTRODUCTION In a typical corporate setting, the purchasing function should play an important role in shaping the competitive capability of the firm in its marketplace. Recent surveys of manufacturing firms in the United States indicate that purchased materials account for an average of approximately 55 percent of the total production costs, compared with about 15 percent for direct labor costs.|1~ It is also well understood that the quality and delivery capabilities of any manufacturing firm are heavily influenced by the performance of its suppliers. Recognizing the importance of the purchasing function in overall corporate performance, most progressive firms pay close attention to their purchasing functions and attempt to improve the management of their supplier networks. For example, a recent study reported that almost half the companies surveyed had expanded the role of purchasing in the corporate strategic planning process.|2~ Yet a careful review of the purchasing management literature shows that the importance of the purchasing function in corporate performance has not fully been recognized in the United States. Traditionally, purchasing has been treated as a lower level operating function that has little to do with overall corporate competitive strategy.|3~ Much of the available literature on the subject treats purchasing strategy and policy from the perspective of narrowly defined operating level policies and strategies. For example, the most frequently discussed purchasing strategies in typical purchasing textbooks are related to the number of suppliers (single versus multiple), pricing strategies (cost or market-based), organization structure (centralized versus decentralized), and other operating level policies. Moreover, informal interviews and interactions with purchasing managers and top executives reveal that many of them still hold the archaic view that purchasing is an independent agency within the company. For example, some companies still use the position title "purchasing agent," and many managers still believe that they are simply an agent for the company and that they do not have any direct input into the firm's strategic management activities. Some purchasing scholars have tried to advance the notion that the purchasing department should be treated as a "profit center" rather than as a strategic organizational unit that contributes to overall corporate performance. The concept of purchasing as a "profit center" may be useful in demonstrating its potential contribution to overall corporate performance; however, this concept also can easily be misinterpreted as an endorsement of the view that purchasing is an independent agency. …
Book•
30 Jul 1992TL;DR: A Communication-Information Theory of Competitive Interaction (CITTI) as mentioned in this paper is a methodology for studying competitive actions and responses in the context of competition and response to competition.
Abstract: Preface The Beginning of a Research Agenda, 1984 A Communication-Information Theory of Competitive Interaction A Methodology for Studying Competitive Actions and Responses Firm Reputation and Rivalry Competitive Actions and Rivalry Responders and Rivalry Industry Environments and Rivalry Competitive Moves, Responses and Organizational Performance An Alternative Perspective on Rivalry Avoiding Wars with Competitors Summarizing and Integrating the Results
Book•
01 Mar 1992
TL;DR: In this article, the authors discuss the future of the transnational economy from world trade to world investment, and the lessons of the US export boom low wages - no longer give competitive edge Europe in the 1990's - strategies for survival US-Japan trade needs a reality check Japan's great postwar weapon misinterpreting Japan and the Japanese help Latin America and help ourselves Mexico's ace in the hole.
Abstract: Part 1 Economics: the futures already around us the poverty of economic theory the transnational economy from world trade to world investment the lessons of the US export boom low wages - no longer give competitive edge Europe in the 1990's - strategies for survival US-Japan trade needs a reality check Japan's great postwar weapon misinterpreting Japan and the Japanese help Latin America and help ourselves Mexico's ace in the hole - the Maquiladora. Part 2 People: the new productivity challenges the mystique of the business leader leadership - more doing than dash people, work and the future of the city the rise and fall of the blue-collar worker on ending work rules and job descriptions making managers of communist bureaucrats China's nightmare - no jobs for the millions. Part 3 Management: tomorrow's managers - the major trends how to manage the boss what really ails the US auto industry the new Japanese business strategies manage by walking around-outside! corporate culture - use it, don't lose it permanent cost cutting - permanent policy what the non-profits are teaching business non-profit governance - lessons for success company performance five telltale tests R & D - the best is business-driven sell the mailroom - unbundling in the 90's the 10 rules of effective research the trend towards alliances for progress a crisis of capitalism - who's in charge? the emerging theory of manufacturing - afterword.
TL;DR: In this paper, the authors describe a series of relationships between manufacturing capabilities and business unit performance, and determine the elements of manufacturing strategies that are systematically found in successful businesses, and find that successful manufacturing firms concentrate their efforts on a few critical factors, and systematically avoid others.
TL;DR: Tapping standard models of strategy analysis and data sources for industry analysis will lead to similar systems and enhance, rather than decrease, imitation, in order to avoid easy imitation.
Abstract: When building a Strategic Information, System (SIS), it may not be economically sound for a firm to be an innovator through the strategic deployment of information technology. The decreasing costs of the technology and the power of imitation may quickly curtail any competitive advantage acquired through an SIS. On the other hand, the iron law of market competition prescribes that those who do not imitate superior solutions are driven out of business. This means that any successful SIS becomes a competitive necessity for every player in the industry. Tapping standard models of strategy analysis and data sources for industry analysis will lead to similar systems and enhance, rather than decrease, imitation. How then should “true” SISs be developed? In order to avoid easy imitation, they should emerge from the grass roots of the organization, out of end‐user hacking, computing, and tinkering. In this way the innovative SIS is going to be highly entrenched with the specific culture of the firm. Top m...
Book•
26 Aug 1992
TL;DR: On technology strategy and technology, technology and industry structure technology and competitive advantage technological strategy - analytical tools technological choice technology-based strategies technological partnerships and strategic alliances technology and organization technology and structure technologies and process technology and culture.
Abstract: On technology strategy and technology, technology and industry structure technology and competitive advantage technological strategy - analytical tools technological choice technology-based strategies technological partnerships and strategic alliances technology and organization technology and structure technology and process technology and culture.
TL;DR: In this article, the authors outline the developments in strategic planning exemplified by the works of Porter (1979, 1985, 1990) and others and describe the ways in which strategic planning can be applied by construction enterprises.
Abstract: This paper outlines the developments in strategic planning exemplified by the works of Porter (1979, 1985, 1990) and others. After describing the emerging concepts and techniques, it is observed that these have been applied by enterprises in other sectors of the economy in pursuit of competitive advantage. Such applications are taking place at the level of parts of an enterprise's operations and at the overall corporate level. This is contrasted with the situation in construction where strategic planning at any level is less widespread, although it is becoming more common. Several reasons are identified as hindrances to strategic planning in construction. The current and historical situation with regard to planning in construction is described. The ways in which strategic planning can be applied by construction enterprises are outlined. In conclusion, it is observed that Porter's new concepts of strategic planning have relevance to, and considerable scope for application in, construction enterprises. It i...
TL;DR: In this article, the authors argue that the longer lead times traditionally associated with changes in HR systems mean that it is a prime candidate to benefit from information technology, though it has proved distressingly difficult to realize the potential of information technology investments.
Abstract: Executive Overview Global competition is putting increasing pressure on U.S. managers to make faster and better business decisions. Investments in information technology are often touted as a critical means of speeding up and improving management decision making. Yet it has proved distressingly difficult to realize the potential of information technology investments. This is particularly so in business areas such as Human Resources (HR), though the longer lead times traditionally associated with changes in HR systems mean that it is a prime candidate to benefit from information technology. To pull into the lead in global competition, managers must control labor costs, motivate employees to high quality, customer-oriented performance, and continuously search out new and better ways of doing both. These objectives must be met in the face of shrinking head count and a global environment in which employees are more culturally diverse and located throughout the globe. Even the relatively routine tasks of emplo...
TL;DR: In this article, the authors conclude that "multinational", "transnational", or "global" corporations are stateless by applying a number of criteria, such as geographic spread and scope of operations, ownership, control, people, legal nationality, and tax domicile.
Abstract: Are "multinational," "transnational," or "global" corporations truly stateless? By applying a number of criteria—geographical spread and scope of operations, ownership, control, people, legal nationality, and tax domicile—one must conclude that they are national firms with international operations. The home nation remains the primary source of a corporation's international competitive advantage, so that weakness at home is unlikely to be compensated by overseas operations. Moreover, it is often simply not feasible for a company as a whole to shift its home base (as distinct from shifting its headquarters). The firm needs its home nation just as the nation needs its home-based firms.
TL;DR: In this paper, the authors identify the role price plays in travel decision making and examine pleasure traveler perceptions of the price and quality of Canadian tourism products compared to those of other countries, and suggest that information gathered from travelers on their perceptions of price, quality, and value can be used to competitive advantage by a country.
Abstract: This article identifies the role price plays in travel decision making and examines pleasure traveler perceptions of the price and quality of Canadian tourism products compared to those of other countries. Pleasure travel is described as an experience, the value of which requires a subjective assessment to be made by travelers. Perceptions as the subjective reality of individuals are the key. The author suggests that information gathered from travelers on their perceptions of price, quality, and value can be used to competitive advantage by a country.
Book•
01 Jan 1992
TL;DR: The theory and history of technology and business firms: the microeconomics of industrial development is discussed in this paper, where Giovanni Dosi et al. propose a theory of the large innovating firm.
Abstract: Introduction Theory and history of technology and business firms: the microeconomics of industrial development. Part 1 Technology and the firm - theory and history: the concept of the industrial revolution, Sydney Pollard science and technology in the 20th century, Nathan Rosenberg the dynamics of technological change - salients, critical problems, and industrial revolutions, Thomas P Hughes business organization and competitive advantage - capitalist transformations in the 20th-century, William Lazonick the roles of firms in technical advance - a perspective from evolutionary theory, Richard Nelson toward a theory of corporate coherence - preliminary remarks, Giovanni Dosi et al some foundations for a theory of the large innovating firm, Keith Pavitt. Part 2 Some empirical evidence - cases from the chemical industry: continuity and change in the management of industrial research - the Du Pont company, 1902-1980 R&D, imitation, and innovation at Montecatini, Pier Paolo Saviotti. Part 3 National evidence of technological accumulation and organizational change - the case of Italy: technical change. microeconomic evolution, and growth - an introductory view of Italian industrial development, Giulio Sapelli R&D growth in Italian industry in an international perspective, Franco Malerba international technology transfer - an overview with special reference to Italian firms, Giorgio Sirilli.
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01 Jan 1992
TL;DR: In this article, the authors define five business "disciplines" which help to build "learning organizations", which will be the successful one in the coming decade because of their ability to learn, to absorb new ideas, theories and practices at all employee levels and use them to competitive advantage.
Abstract: The author defines five business "disciplines" which help to build "learning organizations". These companies will be the successful one in the coming decade because of their ability to learn, to absorb new ideas, theories and practices at all employee levels and use them to competitive advantage.