Abstract
Imitating the positioning rules in the bird flocking system, the strategic adjustment capacity is decomposed into three aspects, which are the organizational learning capacity from the top firms, the extent to which firms maintain or rely on the best operational capacity vector in history, and the ability to overcome the disadvantage while maintaining the advantage of the operational capacity vector from the previous years, respectively. Financial vectors are constructed to represent the results of corporate strategic adjustment and listed firms in the China A stock are chosen as the samples. As empirical analysis reveals, there is a positive correlation between the organizational learning capacity from the top firms and the firm performance and a U-shaped relation between the learning capability from the previous best operational capacity vector and the firm performance. However, no significant correlation between the inertia control ability of the current operational capacity vector of the firms and their performance improvement can be observed. This study verifies that the issue of corporate competitiveness and performance can be investigated by utilizing the principles of competition in nature. Moreover, a firm can obtain a sustainable competitive advantage by improving its ability to learn from top firms in the industry.
Highlights
The focus of strategic management research is how enterprises utilize appropriate strategies to create and maintain competitive advantages
Kniffin considers the sensitivity of individuals to their relative salary standing using the concept of relative fitness that is central to evolutionary studies of all types of human and nonhuman species [36]. Following this point of view, to fill the gap identified by Crossan and Berdrow in organizational learning research [33], this paper aims to understand the specific process of strategic adjustment and uses a quantitative analysis to investigate the relationship between the capacity of strategic adjustment and firm performance from the perspective of the complex adaptive system (CAS) [37]
We used linear panel data regression models to estimate the causal relationships between the performance measured by return on assets (ROA) and the dependent variables chosen as the index of operational capacity and other control variables
Summary
The focus of strategic management research is how enterprises utilize appropriate strategies to create and maintain competitive advantages. Mintzberg et al noted that research on strategy has been criticized for its overly analytical orientation, upper management bias, lack of attention to action and learning, and neglect of the elements that lead to the creation of strategies [1]. Shrivastava note that research on organizational learning focuses on processes; this has the potential to offer insights into these identified drawbacks [2]. Brockman and Morgan believe that organizational learning is the basis for gaining a sustainable competitive advantage and a key variable in the enhancement of firm performance [3]. Some studies provide evidence of a positive relationship between organizational learning and firm performance. Baker and Sinkula find that learning orientation has a direct effect on firm performance [5]. Ussahawanitchakit uses a cultural measure of learning and obtains similar results [6]
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