Choice Of Competitive Strategies Research Articles

Digital transformation, competitive strategy choices and firm value: evidence from China

PurposeThis research aims to examine the effects of corporate digital transformation on firm value, with a particular focus on the mediating roles played by cost leadership and differentiation strategies.Design/methodology/approachThis study employs word frequency analysis to create corporate digital transformation indicators and determine how corporate digital transformation impacts firm value. The data used in the analysis comes from 2,056 listed manufacturing enterprises in China between 2010 and 2019.FindingsThis study demonstrates that digital transformation has a favorable impact on firm value, and that cost leadership strategy and differentiation strategy significantly mediate the relationship between both of them.Research limitations/implicationsThis study utilized word frequency analysis to assess the state of corporate digital transformation. It lacked a more thorough description of internal production processes, operational efficiency, and the pace of digital transformation.Practical implicationsThe results of this study can not only promote the digital transformation and firm value, but also provide a theoretical basis for enterprises to choose a reasonable competitive strategy in the digital transformation.Originality/valueThis study contributes significantly to the field of firm value research by including digital transformation as a fundamental component. Furthermore, it investigates how cost leadership strategy and differentiation strategy play mediating roles, providing a new perspective and explanatory mechanism for understanding the influence of digital transformation on firm value.

Strategic Management Accounting Information Usage and the Choice of Competitive Strategy: Moderating Role of Corporate Life Cycle

Strategic Management Accounting Information Usage and the Choice of Competitive Strategy: Moderating Role of Corporate Life Cycle

Choice of competitive strategy of formal and informal sectors in recycling WEEE with fund subsidies: Service or price?

It is quite common to find that formal and informal sectors compete in the waste electrical and electronic equipment (WEEE) recycling markets in developing countries. The formal sector consists of recyclers with dismantling qualifications, while the informal sector includes recyclers without qualifications. The two sectors compete on the used products' acquisition quantities which depend on both the acquisition prices and collection services. By constructing two-stage game models, the paper studies the two sectors’ competitive strategy, i.e., focusing on higher price or better service. We also examine how subsidies on the formal sector affect its decisions under two schemes of subsidies, namely, subsidy on acquisition quantity and subsidy on acquisition cost. The social welfare under two schemes of subsidies is compared under the same budget. Results show that as the collection cost of the formal sector decreases, the formal sector will adopt the service strategy by investing in its collection service, even at a cost disadvantage compared with the informal sector, while the informal sector will lower service level and raise acquisition price. A rise in subsidy level will also encourage the formal sector to use the service strategy.

The Mediating Effect of The Choice Of Competitive Strategy On The Relationship Of SMA Information Usage and Firm Performance

We investigated the matching relationship between the SMA information usage and the choice of competitive strategy based on the contingency theory, and tested the matching results through firm performance. In other words, we examined the mediating role of the choice of competitive strategy on the relationship between the SMA information usage and firm performance. The study collected data from 172 Chinese manufacturing firms by questionnaire and analyzed the data through PLS-SEM. Through the analysis results we found that when the product-related information usage and customer-related information usage matched with the choice of differentiation strategy, the firm was able to obtain better performance. In addition, the study found that the choice of cost leadership strategy mediated the relationship between the competitor-related information usage and firm performance, as well as the relationship between the use of product-related information and firm performance. This study provides suggestions for Chinese manufacturing managers to use SMA information for strategic decision making, at the same time, demonstrates the link between competitive strategy and SMA.

ОЦІНКА ЕФЕКТИВНОСТІ КОНКУРЕНТНОЇ СТРАТЕГІЇ ПІДПРИЄМСТВА

In the conditions of a market economy, the choice of competitive strategies by enterprises and real sectors of the economy will determine their further development and position on the domestic and foreign markets. The current stage of development of the world economy is characterized by a number of signs that a new model of economic growth is being formed, namely: globalization of business, dynamic development of competition, emergence of new technologies and methods of production organization, shortening of product life. Thanks to these conditions, only those enterprises are able to correctly choose and formulate strategies that allow them to focus on priority areas of activity, use flexible forms of organization and management to carry out activities, and effectively use available resources and their achievements. Therefore, it is especially important to understand the nature and place of competitive strategy in the process of business management. Thus, the common criteria for defining the concept of "competitive strategy" for many scientists are: obtaining a competitive advantage; achieving a competitive position; achieving the level of competitiveness. The purpose of this study is to develop measures to increase the level of competitive advantages of the enterprise in the market environment. In accordance with the goal, the following tasks were solved: the importance of competitive strategy in business management under modern conditions was determined and the methods of evaluating the effectiveness of competitive strategy were analyzed. The object of the study is measures, methods, marketing tools to increase the level of competitive advantages of the enterprise. The subject of the study is the analysis of business management processes in the market environment. As a result of this study, the place of competitive strategy in business management was determined and improved, the main tools and measures of competitive strategy among sales management processes and the need for comprehensive application in the system of marketing measures were determined. The concept of competitive strategy is revealed and its inextricable relationship with marketing is proven. It was established that competitive strategy is a system of organizing a favorable business environment in combination with tactics of actions to support the long-term competitive position of the enterprise on the market, and the criteria for defining the concept of "competitive strategy" are: obtaining a competitive advantage; achieving a competitive position; achieving the level of competitiveness.

METHODOLOGY OF FORMATION OF STRATEGY FOR DEVELOPMENT OF MACHINE BUILDING ENTERPRISES ON THE BASIS OF VALUE COMPETENCIES IN THE CONDITIONS OF GLOBALIZATION

It is established that an effective development strategy contributes to the rapid adaptation of enterprises to changes in the environment and conditions of globalization, and vice versa, the development of globalization processes allows to maintain a competitive level of entrepreneurship. The result of the work should be a focused strategy of the enterprise, ie the concept is developed and defined by it a system of measures aimed at achieving competitive advantage. Therefore, the development of an effective competitive strategy for all enterprises is an important necessity and has undeniable practical value. However, it is important to note the difficulty of choosing the optimal competitive strategy from a variety of strategies, provided that all important aspects are taken into account. The next step of the study should be to develop a model of effective choice of competitive strategy, which takes into account a number of factors, allows for critical quantitative and qualitative analysis of strategic alternatives and involves the use of optimal tools. This will form a truly competitive strategy of the enterprise and ensure its successful practical implementation. Speaking about the choice and feasibility of a competitive strategy, it is important to mention the value chain of the company’s product. The main goal of each enterprise is not just its survival in the market, but stable operation and constant economic growth. To achieve this goal, it is necessary to develop an effective development strategy on the basis of which to create and implement competitive advantages. All this will give the company the opportunity to answer vital questions: where to operate (in what industry or in which markets), how to allocate resources, how to compete effectively with other companies, how to develop stably in the future.

SCIENTIFIC AND APPLIED COMPONENTS OF THE FORMATION OF THE STRATEGY OF INSTITUTIONAL-ORIENTED DIVERSIFICATION OF CONSTRUCTION ENTERPRISES

Information systems play an increasing role in achieving the strategic goals of organizations, as they not only provide information processing for departments and end users in the internal environment, but also directly generate products and services based on information and provide a competitive advantage in the market. In modern business conditions, the choice of effective competitive strategy of the enterprise are especially relevant. The proposed approach to the choice of competitive strategy of the enterprise on the criteria of "level of product / technological innovation", "level of demand in the market / segment" provides a choice of hybrid strategies that combine strategic solutions to minimize costs and differentiation. The formed basic provisions and the built conceptual model of processes of formation, choice and realization of competitive strategy of the enterprise which are presented in the form of interrelation of certain subprocesses, allow to increase efficiency of achievement of strategic purposes of enterprise by strengthening efficiency of its strategic process. The variety of existing strategic approaches and methods determines the multivariate formation of enterprise strategies in general and competitive strategy in particular. Given the importance of information management infrastructure of the organization for its operation and development, a model of its construction is proposed.

液态战略：数字经济环境下的中小企业竞争战略选择

液态战略：数字经济环境下的中小企业竞争战略选择

ФОРМУВАННЯ КОНКУРЕНТНИХ ПЕРЕВАГ ПІДПРИЄМСТВ СФЕРИ ТУРИЗМУ

У нинішніх умовах нестабільної економіки, яка постраждала через пандемію COVID-19, конкурентні переваги і стратегії їх досягнення являють собою практичний інтерес для туристичних підприємств і виступають невід'ємним елементом формування загальної виробничої стратегії в цілому. У статті проаналізовано концепції як вітчизняних дослідників проблеми конкурентоспроможності підприємств, так і зарубіжних вчених. Перераховано фактори, які мають вплив на формування конкурентних переваг підприємства. Розглянуто зміни у конкурентній ситуації в туристичній галузі, викликані сучасним станом внаслідок пандемії COVID-19. Особливу увагу приділено напрямкам досягнення конкурентних переваг, або діловим стратегіям, які можуть застосовуватися туристичними підприємствами. За результатами дослідження, автори приходять до висновку, що чітке формулювання, визначення, реалізація конкурентних переваг і вибір конкурентної стратегії, а також всебічний аналіз факторів, що впливають на конкурентні переваги, забезпечить конкурентоспроможність підприємства на ринку туристичних послуг.

FACTORS OF FORMATION OF COMPETITIVENESS OF AGRICULTURAL ENTERPRISES AND ASSESSMENT OF THEIR IMPACT

Introduction. A highly competitive market environment has necessitated the formation of approaches to effective and rational management of the competitiveness of both the enterprise and its products. Given that the process of competitiveness formation itself is complex and combines elements of both internal and external environment, it is important to identify the factors that affect the management of competitiveness. The multilevel environment and complex causal links between its factors, which determine the choice of competitive strategy to ensure the competitiveness of the enterprise, plays a crucial role in determining the direction of formation and use of the competitive potential of agribusiness entities. The purpose of the article is to summarize the factors of direct and indirect action on the formation of the agricultural enterprises’ competitiveness, as well as analysis of their impact. Results. The article proposes a method of complex research of competitive advantages of the enterprise, where the stages of its implementation are specified, namely: research of the macroenvironment of the enterprise; analysis of the immediate environment and assessment of external competitive advantages of the enterprise; assessment of the processes of formation and development of competitive advantages of the enterprise, as well as appropriate tools are proposed for each stage. The formation of competitive advantages under the influence of factors of resource provision of agricultural enterprises is detailed. The analysis of the impact of environmental factors is carried out in terms of ensuring the competitive advantages of agribusiness entities, considered in the structure of the competitive diamond of M. Porter. Expert assessment and analysis of the dynamics of supporting and related industries, the level of factor conditions, intra-industry competition, parameters of domestic demand and state support of the industry allowed to establish the decisive influence of factor conditions on land, water, financial and human resources, innovation and infrastructure. Supporting and related industries have the least impact due to the high level of their import dependence, which negatively affects the cost of agricultural products and hinders the formation of competitive advantages of agribusiness entities. Key words: competitive advantages, competitiveness, competitiveness factors, evaluation of M. Porter's "competitive diamond".

DETERMINANTS OF THE IMPACT OF THE EXTERNAL ENVIRONMENT ON THE COMPETITIVE POTENTIAL OF AGRICULTURAL ENTERPRISES AND THEIR EVALUATION

Introduction. For the agricultural sector, as a key set of sectors of the national economy, current trends in innovation, in addition to positive results, create additional difficulties in the environmental context, necessitating the need to take into account all aspects of agricultural business and the degree of anthropogenic impact. The multilevel environment and complex causal links between its factors, which determine the choice of competitive strategy to ensure the competitiveness of the enterprise in the system of innovation and investment development, plays a crucial role in determining the formation and use of competitive potential of agribusiness entities. The purpose of the article is to identify environmental factors for the formation of the competitive potential of agricultural enterprises and the development of methods for their evaluation. Results. The most significant factors of the external environment for the formation of the competitive potential of agricultural enterprises were conditionally divided into microeconomic, macroeconomic and supranational. Microeconomic factors include: market capacity, suppliers, type of market on the basis of conditions of competition, conditions of competition in the resource market, the state of logistics infrastructure. Macroeconomic factors include: political stability, exchange rate, inflation, the state of development of the financial market, legal regulation, environmental situation, involvement in the processes of scientific and technological progress, demographic. Factors of a supranational nature include: trade rules, tariff restrictions in countries - trading partners, non-tariff restrictions in countries - trading partners, world prices. In order to assess the impact of environmental factors, previously grouped into 3 sets, a cognitive map was developed, which is a sign-oriented graph, the concepts of which correspond to the selected factors, including the competitive potential of agricultural businesses. The structure of the cognitive map reflects the relationships between factors that become positive, negative or neutral, depending on the channel of general characteristics. Based on the constructed cognitive map, scenarios were developed by introducing impulses into individual vertices of the graph. By calculating the excitation that carries such an impulse, the value of competitive potential was established depending on the influence of each of the selected factors. Key words: assessment, competition, competitive potential, environmental factors.

The strategic competitive analysis of the market of medical resort tourism of Krasnodar territory

One of the most responsible stages of the competitive analysis of the market of services is strategic segmentation of competitors in which course strategic groups of competitors come to light. In article the key barriers causing features of strategic grouping of competitors of sphere of sanatorium services of Krasnodar territory taking into account specificity of a segment of consumers, having problems with health («a medical segment») are allocated. Among the most significant barriers there was a departmental accessory, the organisation of the children's rest, used medical technologies (iatrotechnics, technology, shots), звездность, medical specialisation. On the basis of the revealed barriers ten strategic groups of competitors in the market of sanatorium services of Krasnodar territory, leaning against various sources of competitive advantages and key factors of success in competitive struggle, within the limits of a medical segment are isolated. Prominent features have strategic groups of children's sanatoria. Here as a defining barrier the barrier of strategic grouping «the organisation of children's rest» has acted. The special competitive status official bodies which managements owing to specificity are constrained enough in use of marketing toolkit, and also in manoeuvrability and flexibility of undertaken actions also have. It is allocated three strategic groups of competitors with participants – official bodies. The basic players of the market of sanatorium services of Krasnodar territory – the departmental and independent sanatorium organisations, are united in four strategic groups of competitors. Results of segmentation of competitors will allow the sanatorium organisations to define the strategic group on the basis of the revealed barriers of strategic grouping and can be used at formation of the competitive advantages allowing confidently to conduct competitive struggle among similar under strategic characteristics of the organisations. Segmentation of competitors also helps with more well-founded choice of competitive strategy.

ФОРМУВАННЯ КОНКУРЕНТНОГО ПОТЕНЦІАЛУ НА ПІДГРУНТТІ СТРАТЕГІЧНОГО УПРАВЛІННЯ АГРОПРОМИСЛОВИХ ПІДПРИЄМСТВ

The article reveals the issues of system-forming elements of agro-industrial enterprises’ competitive potential and the choice of competitive strategy as a factor of strengthening and increasing its efficiency through strategic management. It is established that along with the use of exclusive qualitative and quantitative characteristics of resources, competitive advantages can also be created due to the properties of the internal and external environment, rare among competitors. Special attention is paid to such an advantage as competence. The external and internal factors of agro-industrial enterprise’s competitive potential, which cover its assortment, marketing, quality, production management and other policies, innovative development, highly qualified staff availability, access to quality raw materials, are defined. The article presents and justifies the block-scheme of the choice of the agro-industrial enterprise competitive strategy of potential development. It distinguishes two components: structural composition of production and positioning. The proposed methodological approach of such analysis and choice of competitive strategy allows the enterprise not only to form, but also to successfully implement a long-term advantage in a changing environment. The competitive strategy as a tool is linked to the successful implementation of strategic management. It is determined that strategic management should be carried out through an appropriate organizational and economic mechanism, aimed at shaping and strengthening the competitiveness of the agro-industrial enterprise. The proposed mechanism includes a strategic analysis of the operating environment. It establishes essential characteristics of the environment, each consisting of dedicated sub processes, as a basis for defining the mission and goals of the enterprise. It is stated that developing a business strategy is considered to be the core of strategic management, and functional strategies must ensure every management level. A special task of evaluation and control of strategy implementation has been developed. It is determined that adjustments to the results of strategic control should be done for both the implemented strategy and the goals of business entities. In general, the implementation of the organizational and economic mechanisms of strategic management determines certain rules and techniques for forming and strengthening the competitive potential of agricultural enterprises. Keywords: competitive potential, competitive strategy, strategic management, strategy choice, business strategy, functional strategies, strategic analysis, external environment, internal environment, agro-industrial enterprises.

COMPETITIVENESS OF BANKS IN THE MODERN CONDITIONS OF FINANCIAL MARKET DEVELOPMENT

The article carries out the comparative analysis of the basic approaches to the choice of competitive strategies of banks. The aim of the paper is to substantiation of theoretical and methodical principles of banks' competitiveness in the current conditions of financial market development.The factors that affect the level of competitiveness of banks are determined. The authors of the article classifies them into factors that cause structural imbalances in the economy, factors of macroeconomic and microeconomic functioning of banks.Competitiveness of banks can not be considered without the competitiveness of their products and services. Between them there is a close relationship, they determine the development of each other.The authors of the article prove that banking competition differs from classical competition between commodity producers. These differences are: the object of banking competition is not goods, but the resources that the bank generates to carry out active operations; in banking market, banks can act as a seller, not only the buyer; the implementation of banking services may be carried out within the bank without the involvement of external sales channels; the situation of competition arises not only between banking institutions, it is also connected with the activities of non-banking financial institutions; the activities of banking institutions are strictly regulated by the National Bank of Ukraine. Modern conditions of functioning of the banking market testify to the necessity of development and introduction of strategic management of bank competitiveness, development of new methods of formation and implementation of competitive advantages and strategies. Development strategies need to be developed taking into account uncertainty, they should be as flexible as possible and provide for the possibility of realizing banking risks. Thus, it can be construed that the current state of development of banking business is accompanied by crises occurring both in the economic and financial spheres of the country; therefore, ensuring the competitiveness of banks must first of all be based on the development of effective, convincing messages for investors, clients and employees. The main actions of banks that make it possible to present their competitiveness should be this: ensuring financially sustainable development; the protection of the existing own banking business is the elaboration of a contingency plan; work on the prospect.

ANALYSIS OF THE STRUCTURE OF COMPUTER GAMES MARKET IN RUSSIA

With the growth of the computer games market, the competitive environment of this industry is rapidly changing. The constant appearance of new players in the market leads to the need to form a new competitive strategy. In this article, the Porter’s Five Forces model is used as a theoretical foundation for analyzing the level of competition and justifying the choice of competitive strategy. Based on the results of the analysis, we proposed an optimal strategy for companies operating in the market of computer games.

The effect of small firms' competitive strategies on their community and environmental engagement

Corporate social responsibility (CSR) literature holds that CSR can help firms gain a competitive advantage by enabling them to differentiate themselves from their competition and reduce costs. In the strategy literature, differentiation and cost reduction are recognized as two major competitive strategies that firms pursue to outcompete rival firms. Yet, how CSR is linked to a firm's choice of competitive strategy is not explicitly explored in the extant literature. The present paper fills this gap. Using data collected from 478 small firms representing multiple industries in the US, this paper finds that a firm's focus on competing through differentiation strategy is associated with its level of community engagement but not with its level of environmental engagement. Competing through a strategy of cost-leadership is associated with neither community nor environmental engagement. The paper concludes that, except for seeking differentiation through community engagement, the approach of small firms to CSR remains largely characterized by adhoc decisions with few ties to their competitive strategies. The paper advances the understanding of CSR in small firms and provides novel insights into how CSR is linked with competitive strategies.

International competitive strategy choices: comparing firms in China and India

This study investigates the types of international competitive strategies (ICS) followed by Chinese and Indian firms. Using firm-level primary data, the contribution analyses the factors that affect ICS choices and whether these factors differ between the two countries. It argues that firms' resources and capabilities influence firms' propensity to choose a specific ICS and that the strategies differ in relation to firms' location, sector and destination market as well.

Post-adoption switching behavior for online service substitutes: A perspective of the push–pull–mooring framework

The post-adoption behaviors of online service users are critical performance factors for online service providers. To fill an academic gap that persists regarding bloggers’ switching behavior across online service substitutes, this empirical study investigates which factors affect bloggers who switch social network sites, in an attempt to understand specifically how push, pull, and mooring factors shape their switching intentions. The data to test the hypotheses come from an online survey of 319 bloggers, analyzed using partial least squares techniques. The results confirm positive influences of push and pull effects, a negative influence of mooring effects, and an interactive effect of push and mooring on switching intentions. The push–pull–mooring framework thus is a useful tool for comprehending the competing forces that influence the use of online service substitutes. In particular, perceptions of weak connections and writing anxiety push bloggers away, whereas relative enjoyment and usefulness pull bloggers to social network sites; switching cost and past experience also inhibit a change. These findings offer key insights and implications for the competitive strategy choices of online service providers.

The moderating role of competitive strategy in relating firm performance to quality management and government support

One of the main concerns in companies is quality management and its relationship to firm performance. Recently a growing interest in research is the important role of the business environment in the competitive strategy choices of companies. By proposing a conceptual framework for a general model that explains the quality management practices-firm performance link and the business environment-firm performance link, we test the moderating role of competitive strategy in the two links empirically. A survey was conducted of 229 pork-processing firms in the emerging economy of China. We find that specific quality management practices contributing to higher performance include in-company quality management, supplier quality management, employee involvement in quality management and process management, while quality design and customer quality management are not included. Findings also indicate that the business environment (government support in our research) has a positive relationship to firm performance. Competitive strategy only strengthens the relationship between firm performance and quality design, process management, supplier quality management and customer quality management.

Competitive strategy choices of Turkish manufacturing firms in European Union

PurposeThe purpose of this paper is to consider competitive strategy choices of Turkish manufacturing firms operating in EU markets and their action programs in responding to emerging opportunities and threats led by recent developments in Turkey‐EU relations.Design/methodology/approachDrawing on a sample of 79 large size Turkish manufacturing firms, the relative use of competitive strategies and action programs by sample firms operating in EU markets was examined by undertaking both descriptive and multivariate statistical analyses.FindingsThe most heavily used competitive strategy choices were found to be growth strategies aiming to extend current product lines with related products through enabling standardization and technology sharing. The highest ranked action programs implemented by Turkish manufacturing firms focused on enabling integration. The findings of the study indicated that the relative use of competitive strategy options varied to a certain extent between the market entry modes of Turkish firms (equity based and non‐equity based) serving the EU markets. However, no variation was found between the implementation level of action programs and the choice of a particular market entry mode by sample firms.Research limitations/implicationsWhile the variation in the implementation level of several of the competitive strategies appears to be readily justifiable, the reason for the variation is not always clear. It is also necessary to extend the analysis to consider the relative use of strategy options and action programs along with other variables, such as the governance and transaction cost variables.Originality/valueBased on a sample of large size manufacturing firms, this study is the first attempt to identify, classify and explain the key competitive strategy choices and action programs implemented by Turkish firms in EU markets.