Showing papers on "Competitive advantage published in 2016"

Competitive Advantage through Engagement

Abstract: The authors highlight the need for and develop a framework for engagement by reviewing the relevant literature and analyzing popular-press articles. They discuss the definitions of the focal constructs—customer engagement (CE) and employee engagement (EE)—in the engagement framework, capture these constructs’ multidimensionality, and develop and refine items for measuring CE and EE. They validate the proposed framework with data from 120 companies over two time periods, and they develop strategies to help firms raise their levels of CE and EE to improve performance. They also observe that the influence of EE on CE is moderated by employee empowerment, type of firm (business-to-business [B2B] vs. business-to-consumer [B2C]), and nature of industry (manufacturing vs. service); in particular, this effect is stronger for B2B (vs. B2C) firms and service (vs. manufacturing) firms. The authors find that although both CE and EE positively influence firm performance, the effect of CE on firm performance is...

Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers

Abstract: Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs’ green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.

The Origins of American Industrial Success, 1879-1940

Abstract: The United States became the world's preeminent manufacturing nation at the turn of the twentieth century. This study considers the bases for this success by examining the factor content of trade in manufactured goods. Surprisingly, the most distinctive characteristic of U.S. manufacturing exports was intensity in nonreproducible natural resources; furthermnore, this relative intensity was increasing between 1880 and 1920. The study then asks whether resource abundance reflected geological endowment or greater exploitation of geological potential. It was mainly the latter. (JEL 042) Recent thinking about American economic performance has been marked by alarm over the country's loss of its "competitive edge." Most of this discussion is not rooted in an understanding of the historical origins of the economic leadership now thought to be in jeopardy. Modern economists tend to assume that the American advantage has been technological and

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Abstract: In this paper, we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm’s corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach. We find that the greater the CSR orientation of the board (as measured by the board’s independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm’s CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation. This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR. Therefore, the question arises as to how ‘leaders’ are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm’s CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field.

Value creation through stakeholder synergy

Abstract: Our “stakeholder synergy” perspective identifies new value creation opportunities that are especially effective strategically because a single strategic action (1) increases different types of value for two or more essential stakeholder groups simultaneously, and (2) does not reduce the value already received by any other essential stakeholder group. This result is obtainable because multiple potential sources of value creation exist for each essential stakeholder group. Actions that meet these criteria increase the size of the value “pie” available for essential stakeholder groups, and thereby serve to attract exceptional stakeholders and obtain their increasing effort and commitment. The stakeholder synergy perspective extends stakeholder theory further into the strategy realm, and offers insights for realizing broader value creation that is more likely to produce sustainable competitive advantage. Copyright © 2014 John Wiley & Sons, Ltd.

Green Product Innovation: Where we are and Where we are Going

Abstract: Green product innovation (GPI) is becoming more and more relevant for policy makers, companies and society as a whole. As a result, over the last few years the number of studies on GPI development has increased substantially, thus prompting the need to analyse and synthesize the results of these studies. With this aim, this study reviews the body of knowledge on the topic. In particular, a systematic review of the literature is conducted, guided by three main research questions. Specifically, this paper identifies the antecedents, the outcomes and the success factors for GPI development. 63 studies are included in the review. Results show that many factors drive the development of GPI, both internal and external to the firm. Among internal factors, the most important are the prospect of competitive advantage, cost reduction, market benefits, improved reputation and opportunities for innovation. Among external factors, the most important are environmental regulations – current and/or expected – and market demand. In terms of outcomes, this study provides evidence that the most relevant ones are cost savings, achievement of competitive advantage, increased market share, increased sales, increased turnover, higher profits, better reputation, increased exports and higher productivity. Finally, this study highlights that many factors can influence the successful development of GPI, such as top management commitment, building networks of collaborations as well as enhancing knowledge flows, both within and outside the firm, cross-functional integration and development of resources and capabilities. This study provides important implications for companies, policy makers and scholars. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Making Global Value Chains Work for Development

Abstract: Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access to resources and technology while advancing development goals. However, participating in global value chains does not automatically improve living standards and social conditions in a country. This requires not only improving the quality and quantity of production factors and redressing market failures, but also engineering equitable distributions of opportunities and outcomes - including employment, wages, work conditions, economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development challenges. Following this perspective, Making Global Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it serves as a repository of analytical tools; and it proposes a strategic framework to guide policymakers in identifying the key objectives of GVC participation and in selecting suitable economic strategies to achieve them.

Six principles of effectice global talent management

Abstract: To determine how leading companies in North America, Europe, and Asia develop and sustain strong talent pipelines, this research investigates talent management processes and practices in a sample of 37 multinational corporations, selected on the basis of their international scope, reputation, and long-term performance. In-depth case studies and a Web-based survey of human resources professionals identify various effective practices that can help companies attract, select, develop, and retain talent. However, the results suggest that competitive advantage comes not primarily from designing and implementing best practices but rather from the proper internal alignment of various elements of a company's talent management system, as well as their embeddedness in the value system of the firm, their links to business strategy, and their global coordination.

Strategy and control 1in suppler distributor relationships, an agency perspectivie

Abstract: This paper examines the influence of competitive strategy on the relationship between suppliers and their distribution networks. Drawing on agency theory, hypotheses are developed specifying the appropriate match between mnanufacturer strategies and systems of control within distribution channels. Cluster analysis is used to show distinct differences in channel management and structure for the three generic strategies of cost leadership, differentiation and focus. Results suggest that variation in control relationships may be explained by the demands posed by manufacturers' competitive strategies. This study therefore extends the applicability of Porter's typology to the specific structure of distribution channels and shows that agency theory can provide insights into the economic basis of interorganizational relationships.

Internationalization in the information age: A new era for places, firms, and international business networks?

Abstract: The new techno-economic paradigm of the information age has brought about new structures and processes in international business (IB). In this article, we examine the changing nature of the competitive advantages of places, the competitive advantages and strategies of firms, and the governance structure of IB networks in what has also been called the third industrial revolution. These three areas of change in IB activities can be mapped respectively to the location (L), ownership (O) and internalization (I) advantages of the eclectic paradigm. We interpret these OLI factors as dynamic constructs in order to depict analytically the shifts in the IB environment and their implications for IB.

A dual channel, quality-based price competition model for the WEEE recycling market with government subsidy

Abstract: It is quite common to find both formal and informal sectors for processing waste electrical and electronic equipment (WEEE) in many emerging countries. Typically, the formal channel consists of recyclers with official qualifications for disassembling WEEE while the informal channel is dominated by unregulated recyclers. We develop a quality-based price competition model for the WEEE recycling market in a dual channel environment comprising both formal and informal sectors. The equilibrium acquisition prices and effects of government subsidy in the two channels are examined under four competitive scenarios. While government subsidy can support the formal sector, our analysis shows that at a higher quality level of waste, the marginal effect of subsidy is not as promising. When the quality of waste is high but the government subsidy is not substantial, the informal sector always has a competitive advantage. To promote the healthy development of the recycling industry the government should adjust the subsidy appropriately to limit the quality of waste at a high level suitable only for refurbishing in the informal sector. Our study also shows that both the formal and informal channels prefer high quality products. However, the informal recycler always has a better acquisition price to capture a bigger market share of used products than the formal recycler at the quality level of refurbishing for both recyclers. In a quality-pricing environment, as quality increases the acquisition prices in the two channels may crossover. This indicates that neither of the two channels always have a clear price advantage at all quality levels. We will not be able to obtain this result in a uniform pricing model. As such product quality is an important factor to consider in a competitive recycling market.

Tradition and innovation in Italian wine family businesses

Abstract: Purpose – The purpose of this paper is to analyse how a strategy based on the combination of tradition and innovation can offer a competitive advantage to a medium-sized family firm operating in the wine sector. Design/methodology/approach – This research focuses on one case study. The subject of the case study under analysis is Pio Cesare, an internationally recognized fine wine Italian company. Findings – Pio Cesare is characterized by a strong combination of tradition and innovation in terms of products and processes. Innovation and tradition are not opposites; on the contrary, a blend of the two has been crucial in achieving and maintaining a sustainable competitive advantage. Research limitations/implications – The formalization of an effective blend of tradition and innovation, especially in a family business, and an effective dissemination of the company philosophy to future generations, calls for a more in-depth study. This study has some limitations, which determined by the applied methodology. M...

International Trade in General Oligopolistic Equilibrium

Abstract: This paper presents a new model of oligopoly in general equilibrium and explores its implications for positive and normative aspects of international trade. Assuming “continuum-Pollak” preferences, the model allows for consistent aggregation over a continuum of sectors, in each of which a small number of home and foreign firms engage in Cournot competition. I show how competitive advantage interacts with comparative advantage to determine resource allocation, and, specializing to continuum-quadratic preferences, I explore the model’s implications for the gains from trade, for the distribution of income between wages and profits, and for production and trade patterns in a two-country world.

Strategic orientations, sustainable supply chain initiatives, and reverse logistics

Abstract: Purpose – Global outsourcing shifts manufacturing jobs to emerging countries, which provides new opportunities for improving their economic development. The authors develop and test a theoretical model to predict first, how sustainable supply chain initiatives might influence reverse logistics outcomes and second, the impact of eco-reputation and eco-innovation orientation strategies on the deployment of sustainable supply chain initiatives. The paper aims to discuss these issues. Design/methodology/approach – The proposed new model of antecedents and outcomes of sustainable supply chain initiatives underwent a rigorous empirical test through structural equation modeling with samples from an emerging market. Findings – The results show that firms that implement sustainable supply chain initiatives can realize positive reverse logistics outcomes; the study also provides new insights into eco-innovation and eco-reputation strategic orientations as theoretically important antecedents of sustainable supply chain initiatives. Research limitations/implications – Though the authors identify three components of sustainable supply chain initiatives, other components could exist, and ongoing research should investigate them. Practical implications – The findings have important implications for managers in emerging markets seeking to initiate ecologically friendly business practices. The authors offer strong evidence of the benefits obtained from reverse logistics in sustainable supply chain initiatives. Policy makers and firms attempting to nurture sustainable supply chain initiatives should not overlook the important role of eco-reputation and eco-innovation strategic orientations, which the results identify as important enablers. Originality/value – This study offers evidence of the critical role of eco-reputation and eco-innovation strategic orientations in deploying sustainable supply chain initiative programs, as well as of their mutual effects. This study also offers empirical evidence that implementing sustainable supply chain initiatives leads to reverse logistics, creating value, and a new source of competitive advantages.

Economic Analysis and the Quest for Competitive Advantage

Abstract: curred in the past decade between applied microeconomists and those who study business strategy Business strategists have cast up a series of questions for industrial economists, who have responded with numerous applications of economic theory and quantitative research methods This interchange has been fruitful, and indeed more fruit remains for the picking I shall argue for centering the collaborative effort on what may be called "committed competition," rivalrous moves among incumbent producers that involve resource commitments that are irrevocable for nontrivial periods of time Most concerns of business strategy are with policy choices that

How to Use Big Data to Drive Your Supply Chain

Abstract: Big data analytics has become an imperative for business leaders across every industry sector. Analytics applications that can deliver a competitive advantage appear all along the supply chain decision spectrum—from targeted location-based marketing to optimizing supply chain inventories to enabling supplier risk assessment. While many companies have used it to extract new insights and create new forms of value, other companies have yet to leverage big data to transform their supply chain operations. This article examines how leading companies use big data analytics to drive their supply chains and offers a framework for implementation based on lessons learned.

Ambidextrous supply chain as a dynamic capability: building a resilient supply chain

Abstract: Purpose – Developing ambidexterity as a dynamic capability is important for firms to sustain their competitive advantage. Moreover, this capability allows firms to build the resiliency to mitigate enterprise risks. The purpose of this paper is to apply two main theoretical frames from the strategy literature, dynamic capabilities, and organizational ambidexterity, to supply chain management (SCM) to examine mitigation strategies for supply chain (SC) disruptions. The authors empirically investigated how the firm’s SC ambidexterity is developed through a dynamic capability-building process and how this, in turn, can mitigate the negative impact of SC disruptions and improve business performance. Design/methodology/approach – This study conducted a field survey to answer the research questions as there exists no archival database with detailed information on ambidextrous SC strategies and dynamic capability. A total of 316 usable responses were received from managers working in the SC area. Confirmatory fac...

Towards a Prescriptive Theory of Dynamic Capabilities: Connecting Strategic Choice, Learning, and Competition

Abstract: The field of strategy has mounted an enormous effort to understand, define, predict, and measure how organizational capabilities shape competitive advantage. While the notion that capabilities influence strategy dates back to the work of Andrews (1971), attempts to formalize a “capabilities based” approach to strategy only began to take shape in the past twenty years. In particular, the publication of Teece and Pisano (1994), Teece, Pisano, and Shuen (1997), and Eisenhart and Martin (2000) works on “dynamic capabilities” triggered a flood of debate and discussion on the topic. Unfortunately, the literature on dynamic capabilities has become mired in endless debates about definitions and has engaged in an elusive search for properties that make organizations adaptable. This paper argues that the research program on dynamic capabilities needs to be reset around the fundamental strategic problem facing firms: how to identify and select capabilities that lead to competitive advantage. To this end, the paper develops a framework that attempts to connect firms’ capability search strategies with their strategies in product markets. It frames firms’ capability search strategies as choices among different types of capability enhancing investments. The key distinguishing feature of capabilities in this framework is their degree of fungibility: capabilities span a continuum ranging from highly general-purpose (e.g. quality management) to highly market-specific (e.g. knowing how to manufacture an airplane wing). To illustrate the potential of the framework to shed new light on traditional strategy questions, the paper applies the framework to explore some unexplained features of Penrosian diversification strategies. The paper concludes by suggesting a research agenda for dynamic capabilities.

A grey DEMATEL approach to develop third-party logistics provider selection criteria

Abstract: – Third-party logistics (3PL) plays a main role in supply chain management and, as a result, has experienced remarkable growth. The demand for 3PL providers has become a main approach for companies to offer better customer service, reduce costs, and gain competitive advantage. This paper identifies important criteria for 3PL provider selection and evaluation, and the purpose of this paper is to select 3PL providers from the viewpoint of firms which were already outsourcing their logistics services. , – This study utilized the grey decision-making trial and evaluation laboratory (DEMATEL) method to develop 3PL provider selection criteria. Because human judgments are vague and complicated to depict by accurate numerical values, the grey system theory is used to handle this problem. , – The findings revealed the structure and interrelationships between criteria and identified the main criteria for 3PL provider selection. The most important criteria for 3PL provider selection are on time delivery performance, technological capability, financial stability, human resource policies, service quality, and customer service, respectively. , – The paper’s results help managers of automotive industries, particularly in developing countries, to outsource logistics activities to 3PL providers effectively and to create a significant competitive advantage. , – The main contributions of this paper are twofold. First, this paper proposes an integrated grey DEMATEL method to consider interdependent relationships among the 3PL provider selection criteria. Second, this study is one of the first studies to consider 3PL provider selection in a developing country like Iran.

Managing inter-organizational knowledge sharing

Abstract: Corporate knowledge is considered a crucial determinant of sustainable competitive advantages. Recent resource-leveraging strategies emphasize inter-firm collaboration and knowledge sharing across firm boundaries, however. This strategic paradox of protecting versus sharing knowledge suggests the need for new paradigms that reconcile intra- and inter-organizational knowledge sharing. Building on organizational collaboration and control theory, this paper investigates contingencies of inter-organizational knowledge sharing and proposes four configurations of inter-organizational knowledge sharing for managing the paradox. It concludes with a critical review, suggestions for further conceptual and empirical research, and implications for research and practice.

Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance

Abstract: The links between HRM practices and organizational performance have received considerable research attention as significant contributors to sustained competitive advantage. However, the processes that link HRM practices and organizational performance are not fully understood. This study examines the relationships between skill-enhancing, motivation-enhancing and opportunity-enhancing bundles of practices, innovation and organizational performance, and looks at the mediating effect of innovation over time at the workplace level. The results indicate that the temporal pathway from skill-enhancing practices to innovation to organizational performance is positive and significant even after controlling for reverse causality. Strategic activity is also explored and is found to be a significant moderator. This is an indication of the importance of aligning strategy with HRM practices and innovation to achieve improved organizational performance outcomes.