Showing papers on "Competitive advantage published in 2000"
TL;DR: Seeks to present a better understanding of dynamic capabilities and the resource-based view of the firm to help managers build using these dynamic capabilities.
Abstract: This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
13,128 citations
TL;DR: Clusters represent a new way of thinking about national, state, and local economies, and they necessitate new roles for companies, government, and other institutions in enhancing competitiveness as mentioned in this paper.
Abstract: Economic geography during an era of global competition involves a paradox. It is widely recognized that changes in technology and competition have diminished many of the traditional roles of location. Yet clusters, or geographic concentrations of interconnected companies, are a striking feature of virtually every national, regional, state, and even metropolitan economy, especially in more advanced nations. The prevalence of clusters reveals important insights about the microeconomics of competition and the role of location in competitive advantage. Even as old reasons for clustering have diminished in importance with globalization, new influences of clusters on competition have taken on growing importance in an increasingly complex, knowledge-based, and dynamic economy. Clusters represent a new way of thinking about national, state, and local economies, and they necessitate new roles for companies, government, and other institutions in enhancing competitiveness.
4,211 citations
TL;DR: In this article, the authors argue that the creation and transfer of knowledge are a basis for competitive advantage in firms, and they build on a framework of knowledge reservoirs to identify the kinds of knowledge that are most difficult to transfer to different contexts.
3,838 citations
TL;DR: In this paper, the authors examine the black box of knowledge sharing within Toyota's network and demonstrate that Toyota's ability to effectively create and manage network-level knowledge-sharing processes at least partially explains the relative productivity advantages enjoyed by Toyota and its suppliers.
Abstract: Previous research suggests that knowledge diffusion occurs more quickly within Toyota’s production network than in competing automaker networks. In this paper we examine the ‘black box’ of knowledge sharing within Toyota’s network and demonstrate that Toyota’s ability to effectively create and manage network-level knowledge-sharing processes at least partially explains the relative productivity advantages enjoyed by Toyota and its suppliers. We provide evidence that suppliers do learn more quickly after participating in Toyota’s knowledge-sharing network. Toyota’s network has solved three fundamental dilemmas with regard to knowledge sharing by devising methods to (1) motivate members to participate and openly share valuable knowledge (while preventing undesirable spillovers to competitors), (2) prevent free riders, and (3) reduce the costs associated with finding and accessing different types of valuable knowledge. Toyota has done this by creating a strong network identity with rules for participation and entry into the network. Most importantly, production knowledge is viewed as the property of the network. Toyota’s highly interconnected, strong tie network has established a variety of institutionalized routines that facilitate multidirectional knowledge flows among suppliers. Our study suggests that the notion of a dynamic learning capability that creates competitive advantage needs to be extended beyond firm boundaries. Indeed, if the network can create a strong identity and coordinating rules, then it will be superior to a firm as an organizational form at creating and recombining knowledge due to the diversity of knowledge that resides within a network. Copyright © 2000 John Wiley & Sons, Ltd.
3,638 citations
TL;DR: This article examined the effects of international expansion, as measured by international diversity and mode of market entry, on a firm's technological learning and the effect of this learning on the firm's financial performance.
Abstract: An increasing number of new venture firms are internationalizing their business operations early in their life cycles. Previous explanations of this trend have focused on the importance of technological knowledge, skills, and resources for new ventures' international expansion. However, little is known about how these firms use the technological learning gained through internationalization. This study examined the effects of international expansion, as measured by international diversity and mode of market entry, on a firm's technological learning and the effects of this learning on the firm's financial performance.
2,732 citations
TL;DR: In this paper, the authors analyzed whether complementary assets are required to gain cost advantage from implementing best practices, and found that capabilities for process innovation and implementation are complementary assets that moderate the relationship between best practices and cost advantage, a significant factor in determining firm performance.
Abstract: Research on the effects on firm performance of “best practices” of environmental management, which are supposed to enable firms to simultaneously protect the environment and reduce costs, has so far ignored the roles of existing firm resources and capabilities. Drawing on the resource-based view of the firm, this study analyzes whether complementary assets are required to gain cost advantage from implementing best practices. Results based on survey data from 88 chemical companies indicate that capabilities for process innovation and implementation are complementary assets that moderate the relationship between best practices and cost advantage, a significant factor in determining firm performance.
1,851 citations
TL;DR: This paper found that prospective job applicants are more likely to pursue jobs from socially responsible firms than from firms with poor social performance reputations, and that job applicants have higher self-images when working for socially responsive firms over their less responsive counterparts.
Abstract: Several researchers have suggested that a talented, quality workforce will become a more important source of competitive advantage for firms in the future. Drawing on social identity theory and signaling theory, the authors hypothesize that firms can use their corporate social performance (CSP) activities to attract job applicants. Specifically, signaling theory suggests that a firm’s CSP sends signals to prospective job applicants about what it would be like to work for a firm. Social identity theory suggests that job applicants have higher self-images whenworking for socially responsive firms over their less responsive counterparts. The authors conducted an experiment in which they manipulated CSP and found that prospective job applicants are more likely to pursue jobs from socially responsible firms than from firms with poor social performance reputations. The implications of these findings for academicians and practitioners alike are discussed.
1,772 citations
TL;DR: Reflecting the internationalization of the marketplace and the increasing prominence of entrepreneurial firms in the global economy, the research paths of international business and entrepreneur-shi... as mentioned in this paper ].
Abstract: Reflecting the internationalization of the marketplace and the increasing prominence of entrepreneurial firms in the global economy, the research paths of international business and entrepreneurshi...
1,667 citations
TL;DR: In this article, the authors ask specifically what kinds of motivation are needed to generate and transfer tacit knowledge, as opposed to explicit knowledge, for knowledge generation and transfer in an organizational form.
Abstract: Employees are motivated intrinsically as well as extrinsically. Intrinsic motivation is crucial when tacit knowledge in and between teams must be transferred. Organizational forms enable different kinds of motivation and have different capacities to generate and transfer tacit knowledge. Since knowledge generation and transfer are essential for a firm's sustainable competitive advantage, we ask specifically what kinds of motivation are needed to generate and transfer tacit knowledge, as opposed to explicit knowledge.
1,553 citations
TL;DR: A review of the industrial symbiosis literature and some antecedents, as well as early efforts to develop eco-industrial parks as concrete realizations of the Industrial symbiosis concept can be found in this article.
Abstract: ▪ Abstract Industrial symbiosis, as part of the emerging field of industrial ecology, demands resolute attention to the flow of materials and energy through local and regional economies. Industrial symbiosis engages traditionally separate industries in a collective approach to competitive advantage involving physical exchange of materials, energy, water, and/or by-products. The keys to industrial symbiosis are collaboration and the synergistic possibilities offered by geographic proximity. This paper reviews the small industrial symbiosis literature and some antecedents, as well as early efforts to develop eco-industrial parks as concrete realizations of the industrial symbiosis concept. Review of the projects is organized around a taxonomy of five different material exchange types. Input-output matching, stakeholder processes, and materials budgeting appear to be useful tools in advancing eco-industrial park development. Evolutionary approaches to industrial symbosis are found to be important in creating...
TL;DR: This article integrated mass communication theory into past research to develop a concept called media reputation, defined as the overall evaluation of a firm presented in the media, which is a resource that increases the performance of commercial banks.
Book•
12 May 2000
TL;DR: Harnessing Complexity as mentioned in this paper is a step-by-step guide to understand the processes of variation, interaction, and selection that are at work in all organizations and how to use their own paradigm of "bottom up" management, the Complex Adaptive System-whether in science, public policy, or private commerce.
Abstract: A state-of-the-art guide to the new field of complexity-the tool leaders use to understand how people and organizations adapt in a world of rapid change.. Harnessing Complexity will be indispensable to anyone who wants to better comprehend how people and organizations can adapt effectively in the information age. This book is a step-by-step guide to understanding the processes of variation, interaction, and selection that are at work in all organizations. The authors show how to use their own paradigm of "bottom up" management, the Complex Adaptive System-whether in science, public policy, or private commerce. This simple model of how people work together will change forever how we think about getting things done in a group."Harnessing Complexity distills the managerial essence of current research on complexity.A very valuable contribution to the emerging theory of competition and competitive advantage. "-C.K. Prahalad, University of Michigan, coauthor of Competing for the Future"A brilliant exposition that demystifies both the theory and use of Complex Adaptive Systems."-John Seely Brown, Xerox Corporation and Palo Alto Research Center
TL;DR: In the new economy, the sustainable competitive advantage of business firms flows from the creation, ownership, protection and use of difficult-to-imitate commercial and industrial knowledge assets as mentioned in this paper.
TL;DR: In this article, the authors examined the relationship among cultural diversity, business strategy, and firm performance in the banking industry and demonstrated that cultural diversity does in fact add value and, within the proper context, contributes to firm competitive advantage.
Abstract: Although ‘valuing diversity’ has become a watchword, field research on the impact of a culturally diverse workforce on organizational performance has not been forthcoming. Invoking a resource-based framework, in this study the author examined the relationships among cultural (racial) diversity, business strategy, and firm performance in the banking industry. Racial diversity interacted with business strategy in determining firm performance measured in three different ways, as productivity, return on equity, and market performance. The results demonstrate that cultural diversity does in fact add value and, within the proper context, contributes to firm competitive advantage.
TL;DR: The knowledge-based view of the firm views a firm as a knowledge-creating entity, and argues that knowledge and the capability to create and utilize such knowledge are the most important source of a firm's sustainable competitive advantage.
Abstract: The knowledge-based view of the firm views a firm as a knowledge-creating entity, and argues that knowledge and the capability to create and utilize such knowledge are the most important source of a firm's sustainable competitive advantage. Knowledge and skills give a firm a competitive advantage because it is through this set of knowledge and skills that a firm is able to innovate new products/processes/services, or improve existing ones more efficiently and/or effectively. The raison d'etre of a firm is to continuously create knowledge. Copyright 2000 by Oxford University Press.
TL;DR: The strategic alignment maturity assessment is introduced, based on the authors research and consulting experience, that identified the major enablers and inhibitors in the achievement of business-IT alignment and the methodology that leverages the most important enabler and inhibitors.
Abstract: Business and IT practitioners, researchers, and consultants have been asking for an effective tool to assess IT-business alignment. Until now, none was available. This chapter introduces the strategic alignment maturity assessment. This assessment tool is based on the authors research and consulting experience that identified the major enablers and inhibitors in the achievement of business-IT alignment and the methodology that leverages the most important enablers and inhibitors. Alignment focuses on the activities that management performs to achieve cohesive goals across the IT (information technology) and other functional (e.g., finance, marketing, H/R, manufacturing) organizations. Therefore, alignment addresses both how IT is in harmony with the business, and how the business should/could be in harmony with IT. Alignment evolves to a relationship where IT and business adapt their strategies together. Achieving alignment is evolutionary and dynamic. IT requires strong support from senior management, good working relationships, strong leadership, appropriate prioritization, trust, and effective communication, as well as a thorough understanding of the business and technical environments. Achieving and sustaining alignment demands focusing on maximizing the enablers and minimizing the inhibitors. The purpose of this chapter is to discuss an approach for assessing the maturity of the business-IT alignment. Once the maturity is understood, an organization can identify opportunities for enhancing the harmonious relationship of business and IT. INTRODUCTION Decades have passed. Billions of dollars have been invested on information technology (IT). Today, every organization is in the information business. Alignment applying IT in an appropriate and timely way, in harmony with business strategies, goals and needs remains a key concern of business executives. This This chapter appears in the book, Strategic Information Technology: Opportunities for Competitive Advantage by Raymond Papp. Copyright © 2001, Idea Group Publishing. 701 E. Chocolate Avenue, Hershey PA 17033-1117, USA Tel: 717/533-8845; Fax 717/533-8661; URL-http://www.idea-group.com ITB7957 IDEA GROUP PUBLISHING
TL;DR: The ability of a firm to create and maintain relationships with their most valuable customers is a durable basis for a competitive advantage as mentioned in this paper, and to keep this edge over rivals, who continually try to attract these customers away, a firm has to master the three elements of a market-relating capability.
Abstract: The ability of a firm to create and maintain relationships with their most valuable customers is a durable basis for a competitive advantage. To keep this edge over rivals, who continually try to attract these customers away, a firm has to master the three elements of a market-relating capability. First, a relationship orientation must pervade the mind-set, values, and norms of the organization. Second, the firm must keep deepening its knowledge of these customers and putting it to work throughout the organization. Third, the key processes must be internally integrated and externally aligned with the corresponding processes of the firm's customers.
Book•
01 Mar 2000
TL;DR: Common Knowledge as discussed by the authors is an in-depth study of several organizations that are leading the field in successful knowledge transfer, including Ernst & Young, Bechtel, Ford, Chevron, British Petroleum, Texas Instruments, and the U.S. Army.
Abstract: From the Publisher:
While external knowledge about customers, about competitors is critical, it rarely provides a competitive edge for companies because such information is equally available to everyone. But internal "know-how" that is unique to a specific company how to introduce a new drug into the diabetes market, how to decrease assembly time in an automobile plant is the stuff of which sustained competitive advantage is made. Nancy Dixon, an expert in the field of organizational learning, calls this knowledge borne of experience "common knowledge," and argues that in order to get beyond talking about knowledge management to actually doing it, companies must first recognize that all knowledge is not created and therefore can't be shared equally.
Creating successful knowledge transfer systems, Dixon argues, requires matching the type of knowledge to be shared to the method best suited for transferring it effectively. Based on an in-depth study of several organizations including Ernst & Young, Bechtel, Ford, Chevron, British Petroleum, Texas Instruments, and the U.S. Army that are leading the field in successful knowledge transfer, Common Knowledge reveals groundbreaking insights into how organizational knowledge is created, how it can be effectively shared and why transfer systems work when they do.
Until now, most organizations have had to rely on costly "trial and error" to find a knowledge transfer system that works for them. Dixon helps managers take the guesswork out of this process by outlining three criteria that must be considered in order to determine how a transfer method will work in a specific situation: the type ofknowledge to be transferred, the nature of the task, and who the receiver of that knowledge will be. Drawing from the successful but very different ractices of the companies in her study and providing compelling illustrative stories based on the experiences of real managers, Dixon distills five distinct categories of knowledge transfer, explains the principles that make each of them work, and helps managers determine which of these systems would be most effective in their own organizations.
Common Knowledge gets to the heart of one of the most difficult questions in knowledge transfer today: What makes a system work effectively in one organization but fail miserably in another? Going beyond "one-size-fits-all" approaches and simple generalities like upper management involvement and cultural issues, this important book will help organizations of every kind construct knowledge transfer systems tailored to their unique forms of "common knowledge" and in the process create the best kind of competitive advantage there is: the kind that can't be copied.
TL;DR: In this article, the effects of organizational strategic variables, such as management values regarding human resource management (HRM) and the sources of competitive advantage, were examined with data from 138 firms in Korea.
Abstract: To examine the effects of organizational strategic variables, such as management values regarding human resource management (HRM) and the sources of competitive advantage, we developed a model and tested it with data from 138 firms in Korea. The workers studied were nonmanagers. Firms with high scores on valuing HRM and people as a source of competitive advantage were more likely to have high-involvement HRM strategies. These variables also had positive effects on firm performance. In addition, firms with high-involvement HRM strategies had better performance.
TL;DR: The purpose of this paper is to better define the IT infrastructure flexibility construct and to develop a valid, reliable measurement instrument for this construct, and to explore the instrument's predictive validity with possible antecedent and consequent variables.
Abstract: Researchers and practitioners alike have taken note of the potential value of an organization's IT infrastructure. IT infrastructure expenditures account for over 58 percent of an organization's IT budget and the percentage is growing at 11 percent a year. Some even have called IT infrastructure the new competitive weapon and see it as being crucial in developing a sustained competitive advantage. Unique characteristics of an IT infrastructure determine the value of that infrastructure to an organization. One characteristic, IT infrastructure flexibility, has captured the attention of researchers and practitioners. In fact, in most recent surveys featuring issues of most importance to IT executives, the development of a flexible and responsive IT infrastructure and related topics are always at or near the top of the responses. Although the importance of IT infrastructure flexibility has been established, the development of a valid, reliable instrument to measure this construct has not been reported in the literature. The purpose of this paper is to better define the IT infrastructure flexibility construct and to develop a valid, reliable measurement instrument for this construct. In addition to the definition and operationalization of the IT infrastructure flexibility construct, this study explores the instrument's predictive validity with possible antecedent and consequent variables.
TL;DR: In this article, a conceptual model that explains how the coevolution of organizational knowledge, capabilities, and products over long time spans can result in competitive advantage through innovation and strategic linkage of products at a point in time and over time.
Abstract: This article provides a conceptual model that explains how the coevolution of organizational knowledge, capabilities, and products over long time spans can result in competitive advantage through innovation and strategic linkage of products at a point in time and over time. At the heart of the model are sequences of products within and across markets, supported by an underlying system of knowledge and systems of learning. This dynamic model brings the importance of the products themselves, supported by vertical chains of activities, into the analysis of resource and knowledge-based competitive advantage. The model also suggests that we can think about the evolution of firms, and by implication the evolution of industries, not only in terms of knowledge and capabilities, but also in terms of vertical chains and products. Short company histories illustrate the workings of the model. Copyright © 2000 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors developed a framework for examining the export strategies of firms from emerging economies and their performance in foreign markets and tested hypotheses derived from this framework were tested on real world data.
Abstract: This study develops a framework for examining the export strategies of firms from emerging economies and their performance in foreign markets. Hypotheses derived from this framework were tested on ...
TL;DR: In this article, the authors developed a conceptual model of manufacturing strategy from the literature and tested the model using data from a sample of manufacturers in three industries in the United States and found that competitive strategy acts as a mediator between an organization's environment and its manufacturing strategy.
TL;DR: Although typically excluded from strategic human resource models, bundles of work-family policies may be an HR approach related to competitive advantage as discussed by the authors, and Symbolic action and resource-based views pr...
Abstract: Although typically excluded from strategic human resource models, bundles of work-family policies may be an HR approach related to competitive advantage. Symbolic action and resource-based views pr...
TL;DR: In this paper, the authors empirically examined the relationship between trust for a business unit's general manager and organizational performance and found that trust was significantly related to sales, profits and employee turnover in the restaurant industry.
Abstract: Employee trust for the general manager is proposed as an internal organizational characteristic that provides a competitive advantage for the firm. This paper empirically examines the relationship between trust for a business unit's general manager and organizational performance. Trust was found to be significantly related to sales, profits and employee turnover in the restaurant industry. Managers who were either more or less trusted differed significantly in perceptions of their ability, benevolence and integrity. Copyright © 2000 John Wiley & Sons, Ltd.
TL;DR: In this paper, the authors argue that lean production can underpin competitive advantage if the firm is able to appropriate the productivity savings it creates, and that the ambiguity of lean production in practice means that the implementation process can create strategic resources to underpin sustainable competitive advantage.
Abstract: Today, “lean” may no longer be fashionable but its core principles (flow, value, pull, minimizing waste etc.) have become the paradigm for many manufacturing (and service) operations. Given this pre‐eminence, the paper seeks to establish what impact it has had on the overall competitive positions of adopter firms. Combining normative and critical theory (from lean production and resource‐based view of the firm literature) with empirical material drawn from three case studies, the paper argues that lean production can underpin competitive advantage if the firm is able to appropriate the productivity savings it creates. Similarly, the ambiguity of lean production in practice means that the implementation process can create strategic resources to underpin sustainable competitive advantage. Problematically, however, the paper also suggests that being “lean” can curtail the firm’s ability to achieve long‐term flexibility. It concludes with suggestions for further work.
Posted Content•
TL;DR: A conceptual model is provided that explains how organizational knowledge, capabilities, and products co-evolve over long time spans, and how this can result in competitive advantage through innovation and strategic linkage of products at a point in time and over time.
Abstract: This paper provides a conceptual model that explains how organizational knowledge, capabilities, and products co-evolve over long time spans, and how this can result in competitive advantage through innovation and strategic linkage of products at a point in time and over time.
TL;DR: In this paper, the authors outline five polarities that are shaping organizational practices in cultural industries, including the need to balance the advantages of vertically integrating diverse activities under one roof against the need for maintaining creative vitality through flexible specialization.
Abstract: The dilemmas experienced by managers in cultural industries are also to be found in a growing number of other industries where knowledge and creativity are key to sustaining competitive advantage. Firms that compete in cultural industries must deal with a combination of ambiguity and dynamism, both of which are intrinsic to goods that serve an aesthetic or expressive rather than a utilitarian purpose. Managers involved with the creation, production, marketing, and distribution of cultural goods must navigate tensions that arise from opposing imperatives that result from these industry characteristics. In this paper we outline five polarities that are shaping organizational practices in cultural industries. First, managers must reconcile expression of artistic values with the economics of mass entertainment. Second, they must seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category. Third, they must analyse and address existing demand while at the same time using their imagination to extend and transform the market. Fourth, they must balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization. And finally, they must build creative systems to support and market cultural products but not allow the system to suppress individual inspiration, which is ultimately at the root of creating value in cultural industries.
TL;DR: In this paper, the authors explore the effects on a firm of the impact of a technological change on its co-opetitors and argue that a firm's post-technological change performance decreases with the extent to which the technological change renders co-operators' capabilities obsolete.
Abstract: Firms often lose their competitive advantage when a technological change renders their existing capabilities obsolete. An important question that has received little or no attention is, what happens to these firms’ competitive advantage when the technological change instead renders obsolete the capabilities of their co-opetitors—the suppliers, customers, and complementors whose very success may underpin that of the firm and with whom it must collaborate and compete. This paper explores the effects on a firm of the impact of a technological change on its co-opetitors. It argues that a firm’s post-technological change performance decreases with the extent to which the technological change renders co-opetitors’ capabilities obsolete. It uses detailed data on the adoption of RISC (Reduced Instruction Set Computer) technology by computer workstation makers to demonstrate the need to view resources as residing in a network and not in the firm alone. Copyright © 2000 John Wiley & Sons, Ltd.