Competitive Advantage Of Firms Research Articles

THE IMPACT OF GREEN HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL COMPETITIVE ADVANTAGE: A CASE STUDY IN THE TURKISH BANKING SECTOR

Amidst the dynamic landscape of contemporary business, it is imperative for companies to adopt environmentally sustainable practices. This study examines the intricate relationship between Green Human Resource Management (GHRM) practices and the competitive advantage of firms in the Turkish banking industry. The primary objective of the study is to ascertain the exact impact of various GHRM procedures on the competitive standing of a notable bank. The findings of our analysis indicate a robust positive correlation between most GHRM activities, except green reward and pay, and the organization's competitive advantage. Green performance management is the most notable association among these strategies. The intricate nature of these relationships emphasizes the importance of intentionally integrating GHRM strategies into the organizational framework. This study offers valuable perspectives on the broader discourse surrounding Global Human Resource Management (GHRM), emphasizing the tangible benefits of incorporating sustainable human resource practices to enhance organizational competitiveness. The results of our study have practical implications for firms operating in the Turkish banking industry, offering suggestions on how to successfully harmonize sustainable practices with a competitive edge in a fiercely competitive setting. This study explores the intricate correlation between GHRM (Human Resource Management) and the achievement of organizational performance. This study provides a foundation for future research endeavors and provides direction for companies seeking to implement environmentally sustainable practices in order to gain a lasting competitive edge.

Human capital in knowledge-based firms: Re-creating value post-pandemic

BACKGROUND/OBJECTIVE: In today’s volatile business environment, the competitive advantages of firms are temporary. The top management does not, and cannot, have all the answers to increasingly complex and rapidly changing problem situations facing their firms. Since the COVID-19 crisis, organizations have been under pressure to improve their knowledge management practices to continue creating value. Knowledge management capabilities are essential for business performance and competitive advantage. In order to ensure continuous value creation, we conducted research to identify various drivers and dimensions that were revitalized in the ongoing KM practices post-pandemic. METHODOLOGY: In this study, 81 research papers published between January 2010 and March 2022, have been examined from a knowledge management, human capital, and value creation perspective, aiming to understand how a firm can continue to create value before, during, and after the pandemic. RESULTS/CONCLUSION: Our review identifies critical factors in knowledge management and value creation and how companies generate value by leveraging KM during the COVID-19 pandemic. As a result of the research, the authors describe their findings in the form of a conceptual framework which deals with the various drivers and the factors within the KM architecture.

Intellectual capital efficiency and competitive advantage of firms: an empirical analysis

This paper empirically tests the strategic importance of intellectual capital for firms and assesses its impact on their market returns. The study builds on the premise that intellectual capital provides a firm competitive advantage over other firms, which then translates into superior market returns. The sampling frame for the study constitutes of Indian firms listed on the Bombay Stock Exchange’s index for medium-sized companies (BSE Midcap). Accordingly, seven-year data is drawn from authentic sources such as the Prowess-IQ database of the Centre for Monitoring Indian Economy (CMIE) and the company annual financial statements. For ascertaining the extent of the intellectual capital efficiency of firms, the Value-Added Intellectual Coefficient (VAIC) model, first proposed and conceptualized by Ante Pulic has been adopted in this study. The excess rate of return that a firm earns above the average rate of return prevalent in the market, alpha (α), is used as an indicator of the firm’s competitive advantage and a measure of superior performance in the market. Results of the analysis provide irrefutable evidence in support of the fundamental premises and affirm that intellectual capital is the root of competitive advantage, which bestows a firm with higher-than-normal returns on investments.

Strategic Thinking and Competitive Advantage: Evidence from the Nigerian Pharmaceutical Industry

The focus of this study is on strategic thinking and competitive advantage in the Nigerian pharmaceutical industry. Competition is now based on knowledge, technology and the ability to serve customers fast and repeatedly. These are functions of strategic thinking in an organisation. We disaggregated strategic thinking into systems thinking, reflective thinking and creative thinking to ascertain their level of impact on the competitive advantage of firms in the pharmaceutical industry. Using data obtained from 91 employees drawn from three pharmaceutical companies in Nigeria, we adopted the Principal Component Analysis (PCA) technique in analysing the data. The analysis found significant effects of systems and creative thinking on the competitive advantage of pharmaceutical firms in Nigeria. In contrast, reflective thinking was not a significant component of the firm’s competitive advantage. The extraction effects of the components revealed that encouragement of individual employees through seeking their ideas on key decisions, leaders being part of the feedback process in the organisation, participative discussions and enhancement of practical skills of employees accounted for high variance in the firm’s strategic thinking and competitive advantage. The study concluded that companies in the Nigerian pharmaceutical industry have more attachment to systems thinking and creative thinking than reflective thinking. Part of the recommendations was adopting the strategic thinking process of plan, act, observe, reflect and plan again to enhance their competitive advantage in the pharmaceutical industry.

Management systems and productive efficiency along the certification life-cycle

Firms in the world today are pushed to demonstrate objectively that they are able to comply with increasingly stringent requirements to become part of sustainable supply chains. One of the most widely applied practice is the implementation of management systems’ certifications that contribute to increase the efficiency and competitive advantage of firms. Relying in the resource-based view of the firm, the aim of this paper is to analyze the impact of ISO 9001, ISO 14001 and OHSAS 18001 certifications on the productive efficiency of the firm. Specifically, the analysis considers three stages of the certification life-cycle: certification itself, withdrawal (decertification), and retrieval (recovery).Based on a longitudinal sample of 918 European and Asian firms from 2010 to 2019, and relying on a stochastic frontier analysis approach, this work presents empirical evidence on the effects of these certifications on firms’ productive efficiency along the certification life-cycle. Differences in countries and industries have been also found.The main findings suggest that ISO 9001 is the main driver of productive efficiency, mainly when combined with ISO 14001 as well as in the triple certification. Withdrawals and retrievals are not found to increase productive efficiency in most of the cases, probably because of the internalization of these practices. However, productive efficiency is hindered by the simultaneous withdrawal of ISO 9001+ISO 14001, whereas it is increased with the withdrawal of OHSAS 18001. Finally, the retrieval of ISO 9001 hinders productive efficiency.The main contributions of this paper are three: to analyze the impact of different combinations of certifications on productive efficiency; to study this relationship along the certification lifecycle, and to contribute to the resource-based view theory because these practices are unique resources which management allow firms to gain competitive advantage.

Innovation and Firm Performance: The Moderating Role of Intellectual Capital among Chinese Companies

This study examines the impact of innovation on firm performance and how intellectual capital (IC) moderates the association between innovation and firm performance. We apply an innovation index that measures the frequency of innovative related words, which appear in firm financial reports to proxy for innovation. IC is estimated through the value-added IC (VAICTM) model. This study analyses Chinese firm-year observations of financial profitability (firm value) datasets, which total 19,152 (18,276) over the years from 2007 to 2019. Results indicate that the innovation index is positively related to financial profitability and firm market value. Moreover, the moderating outcomes suggest that IC boosts the positive relationship between innovation index and firm performance. Overall, this study highlights the importance of having innovation and IC together for gaining firm competitive advantages and progressing profitably. That is, firms should be innovative and must manage their IC well.

The influence of entrepreneurial innovations in building competitive advantage: the mediating role of entrepreneurial thinking

PurposeDespite the widespread recognition of the significance of entrepreneurial innovations in driving financial success and building firms' competitive advantage, there is a lack of empirical investigation into their impact on organizations. This research paper aims to address this gap by exploring how entrepreneurial innovations can contribute to firms' competitive advantage and the mediating role of entrepreneurial thinking in this relationship. To answer these research questions, this paper utilizes the resource-based view (RBV) of the firm and the dynamic capabilities view (DCV).Design/methodology/approachThe study employed a quantitative research design, and survey data were collected from 102 chief executive officers (CEOs) of Jordanian manufacturing companies in various industries. Structural equation modeling was used to test the hypothesized relationships.FindingsThe findings of this study suggest that there is a positive and significant impact of entrepreneurial innovation and thinking on the competitive advantage of firms. The authors also found that entrepreneurial thinking positively mediates this relationship. This study’s results support the RBV and DCV perspectives, which suggest that firms need to leverage unique resources and capabilities and develop dynamic capabilities to achieve a sustained competitive advantage.Originality/valueThe significance of this study lies in its contribution to the literature on the relationship between entrepreneurial innovation, thinking and competitive advantage. While previous research has explored these concepts separately, this study integrates them into a comprehensive framework that highlights the mediating role of entrepreneurial thinking in the relationship between entrepreneurial innovation and competitive advantage.

Personalized human resource management via HR analytics and artificial intelligence: Theory and implications

This conceptual paper theorizes the emerging concept of personalized human resource management (HRM), which refers to HRM programs and practices that vary across individuals within an organization. As a subset of high-performance work practices (HPWPs), personalized HRM is implemented at the individual level and represents the next generation of HRM, which is characterized by the adoption of advanced HR analytics and artificial intelligence (AI) to provide tailored HR solutions. We argue that personalized HRM constitutes a unique source of sustained firm competitive advantage and offers additional beneficial performance effects on top of other HPWPs. Drawing on the theories of individual differences and person-organization fit, we explain why personalized HRM outperforms traditional standardized HRM in terms of productivity, favorable HR climate, flexibility, return on investment of HRM, and firm financial performance. We also suggest that business strategy is a moderator of the relationship between HRM and firm performance. Building on the AI job replacement theory, we further propose that the mechanical and analytical intelligence (intuitive and empathetic intelligence) required for personalized HRM tasks is positively (negatively) related to the adoption of AI. Lastly, we elaborate on the implications and explain how advanced HR analytics and AI can facilitate the transition toward personalized HRM.

A meta-analysis of sustainable supply chain management and firm performance: Some new findings on sustainable supply chain management

Industry and academia are increasingly focusing on sustainability as a competitive advantage for firms in the supply chain. Despite the increasing research on sustainable supply chain management (SSCM), the empirical results show a negative and positive relationship with firm performance, while the performance aspect pays less attention to the innovation dimension. Hence, it is necessary to synthesize previous studies to extend the theoretical framework of SSCM and firm performance and to analyze the effects of potential moderating variables on the relationship between SSCM and firm performance. To do this, we conducted a meta-analysis of 42,461 observations from 128 independent samples in 158 empirical studies. The results indicate that SSCM not only improves operational, economic, environmental and social performance, but also enables companies to innovate. In addition, the downstream SSCM contributes the most to firm performance, followed by the internal SSCM, while the upstream SSCM contributes the least. Interestingly, a journal reputation can affect the SSCM-firm performance relationship. We not only extend the framework of SSCM and firm performance, but also combine SSCM with the innovation dimension for the first time. Meanwhile, our results help managers clarify how to make trade-offs with SSCM practices.

Knowledge Management as a powerful tool to increase competitiveness. Exploring interrelations of knowledge management and adult learning in the context of the learning organization

Organisations consider knowledge as a vital factor and important resource, as effective knowledge management can stimulate sustainable competitive advantages for firms, (Darroch, 2005, Liebowitz, 2001). Therefore, improving knowledge management processes especially in terms of effectiveness and efficiency became crucial for the learning organisations (Omotayo, 2015)
 This paper thus explores whether and how knowledge management works in various organisations operating in Hungary. Our empirical research inquires KM initiatives detectable in these organizations, their knowledge management systems, the potential roles of digital technology in the field of knowledge management and their environment and networking opportunities in knowledge sharing. The study uses data collected from 265 employees of various companies in Hungary, it uses independent samples t-test (ANOVA), Scheffe analysis and Spearman’s rank corelation to investigate correlations between different dimensions and items of the Dimensions of Learning Organisations Questionnaire (Watkins and Marsick, 2003). Research results show that organisations mostly focus on providing continuous learning opportunities and neglecting other important factors, they face challenges in terms of effective adult learning, meantime managers may not be fully exploiting their potential in terms of knowledge management. Customer satisfaction and its connectedness to knowledge management systems are hardly recognised and less integrated, though this is key success factor for business competitiveness. ICT investment and strategies are not necessarily connected to such important dimensions like knowledge management strategy, leadership, future vision or creating continuous learning opportunities.

The Effect of Airline Relationship Immersion on Brand Attachment and Relationship Persistence Intention in Korea – Focused on the Frequent Flyer Programs

The core of marketing strategies in the service industry is to increase customer retention rates as much as possible by increasing customer loyalty. In particular, due to the own nature of the aviation industry which is sensitive to external factors of the rapidly changing world, one of the important strategic goals to occupy a firm competitive advantage is securing regular customers such as "Loyal Customer." The purpose of this study is to find out not only the price competitiveness of airlines but also the influence among relationship commitment, brand attachment, and relationship persistence intention in order to survive the fierce competition in the airline industry. Based on that, it is intended to develop strategies that can be used to maintain existing customers and attract new customers to find ways to be more competitive for each airline. The questionnaire consisted of four factors: Frequent flyer programs, relationship immersion, brand attachment, and relationship persistence intention and the survey subjects were passengers using airlines. Statistical processing of the collected data was analyzed using the SPSS v. 25.0 statistical package program. It was found that the relationship immersion according to the frequent flyer programs affected both the love dimension and the solidarity dimension factors of brand attachment. In addition, it was found that both emotional immersion and computational immersion, which are sub-factors of relationship immersion, had a significant effect on relationship persistence intention. The detailed factors of the frequent flyer programs to improve the relationship immersion of airlines were identified and the factors affecting the relationship persistence intention were identified. Also, it was confirmed that relationship immersion was an essential factor to increase brand attachment and relationship persistence intention of customers to the airlines. Through this, this study would contribute to play a big role in developing strategies that can be used to maintain existing customers and attract new customers, and presenting a framework for utilizing existing customer relationship marketing. Key Words: Relationship immersion, relationship commitment, Brand attachment, relationship persistence intention, frequent flyer programs, emotional immersion, computational immersion

Determination of SME’s Internationalization in Malaysian Context

The increasingly tight competition urged SMEs to expand the market beyond national borders, not only for their growth and expansion but also to participate in the nations’ economic development. Consequently, internationalization has become a vital component for any SME which necessitate enhancing our understanding on determinants of internationalization, particularly in emerging economies. To this end, a literature review is conducted to develop a new conceptual model. Certain variables are identified for influencing SME internationalization including export capability and networking capability. Additionally, it is proposed that the relationship between networking capability, export capability and SME internationalization might be mediated by competitive advantage. This study contributes to the scant literature on the determinants of the firm competitive advantage and its potential mediating role in the relationship between organizational capabilities and SME internationalization. Practically, the present study benefits policymakers and the government in developing countries to outline the suitable policies and frameworks to produce more SMEs that are capable to exploit the international markets.

The Effect of Mergers and Acquisition on a Firm's Competitive Advantage: A Case of Hewlett-Packard East Africa

The Effect of Mergers and Acquisition on a Firm's Competitive Advantage: A Case of Hewlett-Packard East Africa

The influence of transformational and learning through R&D capabilities on the competitive advantage of firms

PurposeThis study provides theoretical and empirical insights into how firms can enhance their performance strategically and financially by integrating learning and transformational capabilities into research and development (R&D) activities based on the dynamic capabilities approach. To achieve this, the authors propose that transformational capabilities in R&D mediate the relationship between learning capabilities in R&D and competitive advantage.Design/methodology/approachUsing a purposive sampling technique and standardized questionnaires, data were collected from 118 R&D and senior managers. To analyze the data, multiple regression analysis, along with SPSS PROCESS macro (Model 4), was used.FindingsThe results support the theoretical assumption that there are direct and indirect positive and significant effects between learning capabilities in R&D and competitive advantage as mediated by transformational R&D capabilities.Originality/valueThis study explores R&D from a dynamic capabilities perspective and suggests that learning capabilities should come first to enhance businesses’ competitive advantage. Furthermore, transformational R&D capabilities can explain the relationship between learning capabilities in R&D and competitive advantage. The authors recommend that researchers should investigate the contributions of R&D to promote competitive advantage.

Gen Z Workforce and Job-Hopping Intention: A Study among University Students in Malaysia

Recruiting and retaining top talents are crucial for firm competitive advantage. However, job hopping behaviour has become a significant problem for HR practitioners. In Malaysia, job hopping trend among Generation Z has led to a high turnover rate. It causes damages as firms must endure a significant loss in both financial and non-financial costs. This phenomenon is contributed by several factors that spur them to leave their current employment for other job opportunities. This study has twofold objectives namely: to investigate the relationship between motivational factors and job-hopping intention among Gen Z, and to determine which motivational factors that have significant influence on job hopping intention among Gen Z. This research applied a quantitative method via survey. The items of the questionnaire were adopted from past studies that employed similar instruments that links the job-hopping intentions among Gen Z. Validity and reliability tests had been conducted to test the variables. Data was gathered from 369 respondents who are currently enrolled in public and private universities in Malaysia. Inferential analysis was performed to examine the relationship and influence between motivational factors and job-hopping intention among Gen Z. This study found that both intrinsic and extrinsic factors have significant relationships with job hopping intention among Gen Z. Findings reveal that only four factors have significant impacts on job hopping intention among Gen Z; and achievement factor was found to be the most influential factor in predicting job hopping intention among Gen Z. This study provides insight to government, researchers and organization on the issue related to human resource problem and the possible key factors to motivate and retain them from leaving their current employment. This study enables the organization to find suitable solutions to retain the Gen Z professionals that possess excellent skills and experience for a future growth of the company.

Digitalization and green supply chain integration to build supply chain resilience toward better firm competitive advantage

Organizations rely on information technology to integrate internally and externally to create process efficiency in increasing competitiveness. Information technology can support digitalization in companies to maintain green supply chain management. Manufacturing companies are required to be able to pay attention to the environment by maintaining the balance of nature. The object of this research is manufacturing companies located in East Java. Data were collected from respondents through questionnaires which were distributed using Google form. The results of the questionnaire distribution were obtained from a total of 108 companies analyzed using the partial least squares method. The analysis shows that digitalization affects supply chain integration, green supply chain, and resilience. Digitalization in the supply chain can form a strong integration, energy efficiency, and effectiveness to survive. Supply chain integration affects the green supply chain and supply chain resilience. Integration in the supply chain system, able to overcome environmental problems and optimize resources. A green supply chain affects supply chain resilience. Supply chain integration, green supply chain, and supply chain resilience affect a firm competitive advantage. Practical research contributions for management to allocate budgets with the needs of application development and supply chain systems within the company. Supply chain digitization is a solid foundation for companies to have a competitive advantage against competitors.

Assessing the Integrated Impact of Sustainable Innovation on Organisational Performance: An Empirical Evidence From Manufacturing Firms

Sustainable Development Goals (SDGs) have gained importance and the world is moving on a sustainability trajectory, which requires organisations to balance financial, environmental, and social dimensions of management. Companies are encouraged to adopt sustainable innovations that include resource efficiency, waste reduction, energy use, responsible behavior etc., to overcome environmental issues and incorporate societal aspects. However, the types of innovations that embrace the so-called triple bottom line philosophy have been tenuously investigated in relation to organisational performance of firms. Through an empirical study, this work investigates the relationship between sustainable innovation in its three dimensions and organisational performance, including stakeholder management, human resource management and process measures, in the context of Italian manufacturing companies. The results show that a greater emphasis on sustainable innovations has a positive impact on the organisational performance and competitive advantage of firms, revealing the key role of human capital and portraying important avenues for future research.

Building on firm competitive advantage through core competence manufacturing firm

The study examined the effect of core competence and firm competitive advantage in the Nigeria Brewing industry, with a focus on selected Brewing firms in Enugu, Onitsha and Benin City. The study employed a descriptive survey research design. Instrument adopted for the study is a structured questionnaire based on simple random sampling method. In addition, interview was also employed to serve as a compliment for the questionnaire. Reliability of the research instrument was tested using the Cronbach Alpha method which revealed that the instrument is reliable. The result of Durbin Watson revealed that the data is free from autocorrelation. Data analysis was done using both descriptive and inferential analysis technique. Descriptive statistics was used to give insight on the respondents profile while inferential statistics was used in the conducting of hypotheses. The two research questions for the study were analyzed using multiple regression model. The study shows that the two null hypotheses were rejected while the two alternative hypotheses were accepted (intellectual capital (p=0.000<0.05, ?=0.325) and customer services (p=0.000<0.05, ?=0.708).

Organizational Antecedents of Corporate Entrepreneurship: A Quantitative Investigation from Portugal

Corporate entrepreneurship (CE) is a critical tool for fostering innovative behaviour and obtaining competitive advantage in firms. This study examines various organizational factors that are critical for building an internal environment in a firm conducive to CE. It utilizes the Corporate Entrepreneurship Assessment Instrument (CEAI) for identifying critical factors essential for the CE. The study assesses a theoretical model on a sample of 114 managers by predicting firms that are most likely to be recognized for their efforts. The study results reinforce the construct validity of the CEAI instrument utilized for measuring the perception of organizational antecedents conducive to promoting CE. Further, the study offers rich insights into organizational factors essential for improving CE. The study concludes that, in general, firms overwhelmingly support CE despite their lack of knowledge about organizational factors essential for CE.

Social Entrepreneurial Behavior and SMEs' Competitive Advantage: Evidence from Small and Medium-Sized Enterprises in Kenya

Purpose: The objective of this paper was to examine the effect of social entrepreneurial behavior (SEB) on SMEs' competitive advantage in Kenya.Design/Methodology/Approach: A survey research design approach was adopted. The study population consisted of all the licensed small and medium-sized enterprises in Nairobi County, Kenya. However, out of the 10,924 small and medium-sized enterprises (SMEs), a sample of 386 was selected based on Yamane's (1967) procedure. The data were collected with the aid of a self-administered questionnaire and analyzed through descriptive and inferential statistics. The hypotheses were tested through the entry regression analysis technique.Findings: Evidence obtained from the analysis confirmed that social entrepreneurial behavior (β= 0.499, p < 0.05) had a positive and significant effect on competitive advantage.Research limitations: This study had limitations. First, the study focused only on the aspects of social entrepreneurial behavior linking it to competitive advantage. SEB dimensions such as Entrepreneurial virtue and Judgment capacity may be studied in the future. Second, future studies may examine various methods of measuring social entrepreneurial behavior. Thirdly, the study concentrated on the economy of Kenya, which is a developing country. Thus the result may vary in other economies.Practical implications: Based on the findings, the study recommends that small and medium-sized enterprises should consider social entrepreneurial behavior to enhance competitive advantage and improve their overall performance.Originality/Value: The framework builds on the essential themes of competitive advantage and shows their relevance in practice through social entrepreneurial behavior. Thus, the study partly contributes to the inconclusive debate on social entrepreneurial behavior (SEB) and firm competitive advantage nexus by arguing that social entrepreneurial behavior (SEB) has a direct effect which is more important in enhancing an organization's competitive advantage.