Determinants Of Competitive Advantage Research Articles

Assessing the Factors Influencing Service Innovation Capabilities and Performance

Innovation has been recognized as a central source of business growth and a key determinant of competitive advantage for many organizations. This paper seeks to address two main objectives. The first objective is to examine the direct effect of organizational structure (i.e. centralization and formalization), transformational leadership, organizational learning and customer orientation on innovation capabilities. The second objective is to examine the effect of innovation capability and organizational performance. Findings show that customer orientation, organizational learning, and transformation leadership had significant positive effects on innovation capability. The results further show that innovation capability had a significant impact on organizational performance.

Assessing Knowledge Transfer in a Thai Multinational Corporation

Effective sharing of market-related intelligence is a key determinant of competitive advantage for multinational corporations (MNCs). Drawing on research on transnational management and market-driven organizations, a qualitative case-based analysis centered on a Thai telecom firm examines the key drivers of knowledge transfer from international affiliates in host countries to headquarters during various stages of internationalization. Interviews with a dozen executives who manage 18 offices in the Asia-Pacific region highlight three key factors that affect knowledge transfer in MNCs: the market-driven capability of the firm, the functional diversification of international affiliates in host countries, and the individual functional orientation among key personnel working in the affiliate locations. Exploring the impact of these factors as the leaders of the MNC strive to accomplish their organizational goals during various phases of international expansion, the study also points to the need for further research to fully assess the effects of distance—in terms of culture, geography, and language—on knowledge transfer. ©2015 Wiley Periodicals, Inc.

Capital intelectual y otros determinantes de la ventaja competitiva en empresas exportadoras de la zona norte de Honduras

The objective of this research is to analyze the intellectual capital and other determinants of competitive advantage in exporting companies in northern Honduras, from two perspectives: the theory of resources and capabilities, and the theory of the firm based on the knowledge. At the end of the hypothesis test data were used by probit regression. The evidence found indicates that having more intellectual capital, the seniority of the exporting company, the size and degree of requirement of the destination country, they are relevant variables that influence in a positive way the level of competitive advantage. It is believed that the results contribute to the literature on the level of competitive advantage in exporting firms in developing countries being the first work of this kind in Honduras. As a future line of research must be carried out an identification, classification and measurement of intellectual capital and competitive advantage, both variables measured longitudinally.

Determinants of Competitive Advantage in the Textile and Apparel Industry in Tanzania: The Application of Porter’s Diamond Model

Determinants of Competitive Advantage in the Textile and Apparel Industry in Tanzania: The Application of Porter’s Diamond Model

Determinants of Innovation: A Study of SMEs in India

Small and medium enterprises (SMEs) play an important role in Indian economy. In India, small and medium enterprises contribute about 45 percent of the gross turnover in the manufacturing sector and 40 percent of total exports. These enterprises provide employment to large number of people and contribute significantly to growth and GDP of an economy. In the world economy, knowledge as a determinant of competitive advantage is gradually replacing traditional factors of production like labor and capital. In order to survive and compete in the globalized market, small and medium enterprises need to use knowledge to innovate. But these small-scale enterprises however lose out to the big enterprises in terms of financial sustainability, range of products, marketing clout, brand and bargaining power. At the same time, it is observed that there are number of small and medium enterprises which are growing and becoming competitive. The present study focuses on identifying determinants of innovation in case of small and medium enterprises in India. To be more specific, following research issues have been examined: How are SMEs in India innovating? What are the factors that determine innovative behavior of small and medium enterprises? The study is an attempt to seek answer to these questions. Extensive literature review includes the concept of innovation, innovation process, management of innovation. Different government, private associations are approached for data collection. The study is conducted on four sectors: Automotive Component, Textile (Garment manufacturing), Pharmaceutical and Information Technology. The result shows that most of the enterprises are involved in process innovation owing to the cost factor and short life of innovation. The enterprises are involved in the improvements depending on the nature of sector, product, cost and demand of that product in the market.

Distinguishing Sectoral Innovation Behaviour: A Study of SMEs in India

Small and medium enterprises (SMEs) are regarded as the main source of entrepreneurship and innovation. These enterprises provide employment to large number of people and contribute significantly to growth and GDP of an economy. In the world economy, knowledge as a determinant of competitive advantage is gradually replacing traditional factors of production like labor and capital. In order to survive and compete in the globalized market, small and medium enterprises need to use knowledge to innovate. In India, small and medium enterprises contribute about 45 percent of the gross turnover in the manufacturing sector and 40 percent of total exports. These small-scale enterprises however lose out to the big enterprises in terms of financial sustainability, range of products, marketing clout, brand and bargaining power. At the same time, it is observed that there are number of small and medium enterprises which are growing and becoming competitive in different sectors. The present study focuses on distinguishing sectoral innovation behavior of small and medium enterprises in India. To be more specific, following issues are examined: How are SMEs in India in selected sectors differ in adopting innovative practices? How they manage their innovation behavior? Extensive literature review includes the concept of innovation, innovation process, management of innovation and overview of innovation in selected sectors. Different government, private associations are approached for data collection. The study is conducted on four sectors: Automotive Component, Textile (Garment manufacturing), Pharmaceutical and Information Technology. The result shows that the enterprises in selected sectors are involved in the improvements depending on the nature of sector, product, cost and demand of that product in the market.

Determinants of competitive advantage in tuna farming industry in Croatia

Purpose – The aim of the paper is to gain a wide picture of competitive aspect of tuna farming industry, show its impact on the economy and society in Croatia, and to identify possibilities for improvement of current and future industry‐involved companies.Design/methodology/approach – Research methodology used was desk research using benchmark of relevant published papers and analysis of official statistical data. Based on information gathered, the author developed its own analysis of a current state in the industry.Findings – The paper provides an overview of tuna farming industry in Croatia, showing place for increasing the production due to stable demand but also the unused demand in domestic market. Still, there are a lot of barriers as a legal regulations, limited space and lack of supporting industries. With the involvement of companies and the country's representative bodies, the industry has potential to develop into stable economic activity.Social implications – Tuna farming is based on seacoast ...

Service quality in supply chain: empirical evidence from Indian automotive industry

PurposeThis paper aims to conceptualize the role of service quality in the manufacturing supply chain, present a scale to measure the same, and a model that proposes that internal and external service quality initiatives lead to loyalty and satisfaction of supplier, which in turn are determinants of competitive advantage and organizational performance of the focal organization.Design/methodology/approachThe research design for this paper includes a combination of literature review, exploratory interviews with scholars and practitioners, and a survey of 156 practitioners in three automobile‐manufacturing companies in North India. Structural equation modeling has been used for data analysis.FindingsThe paper has developed a scale to measure service quality in the supply chain, and presented a model and set of propositions related to service quality in the supply chain. The model proposes linkages of service quality with loyalty, satisfaction, competitive advantage and organizational performance. The author has empirically tested the model at supplier‐manufacturer dyad and found that the data fit the model.Research limitations/implicationsFuture researchers could validate this scale, and empirically test the proposed model. Insights derived from supplier‐manufacturer dyad may be transferred to other dyads of supply chain such as manufacturer‐distributor, distributor‐retailer, and manufacturer and its own employees.Practical implicationsThis study would be of interest to manufacturing industry practitioners interested in internal and external service quality improvements. This study finds support for strengthening relationships between a focal organization and its suppliers. Service quality‐based business processes can help strengthen business relationships, develop synchronized linkages between supply chain members, and consequently gain competitive advantage.Original/valueThere are few empirical studies that measure service quality in manufacturing industries or the supply chain. The role of internal and external service quality and their linkages with loyalty, satisfaction, competitive advantage and organizational performance has previously not been conceptualized.

THE STRATEGIC ROLES OF HUMAN CAPITAL, LEARNING AND INNOVATION CAPABILITIES TO INDONESIAN PHARMACEUTICAL COMPANY PERFORMANCE

Pharmaceutical industry is strongly konwledge-based and research-intensive with knowledge product as the competitive advantages determinant.In the pharmaceutical industry, human capital is strategic assets as the main pilar of organizational competence in creating values to satisfy its customer’s need. Human capital is the key for competitiveness and the key for making innovations. In this contex, knowledge mastery is very crusial to pharmaceutical company. A company can have competitive advantage if they know how to extend, disseminate, and exploate knowledge internally and know how to protect it from being imitated by its competitors. For doing this, individual as well as collective learning in the company is needed in order to integrate different streams of various technologies, which at the same time strengthen its core competence.. Learning will also strengthen its absorbtive capacity, which in turn enables the company to absorb knowledge form external sources to be combined with internal capabilities have been possessed by the company. Within pharmaceutical industry, innovation capability, eitherin terms of innovation process or products, play signifikan important role in creating competitive advantage. Without innovation capability, a pharmaceutical company will be stagnant because it will not be able to respond the demands of hightly dynamic market. Learning capabilitycloselyrelates to innovation outcome. Orgaizatuional learning process has very strong relationship with organizational perfornmance. This research tested the strategic roles of human capital, learning and innovation capabilities to Indonesian pharmaceutical companies. This research was carried out through field study, while the data process and analysis was done with Structural Eqution Modeling (SEM) using Lisrel 8.7 program. This research found that pharmaceutical companies with veru strong human capital, and superior learning and innovation capacities had excellent organizational performance with sustainable competitiveness. These three variables were found to be critical determinants of competitive advantage of Indonesian pharmaceutical companies. Keywords : Human capital. Learning, innovation, competitive advantage and company performance

Hybrid PET/CT and SPECT/CT Imaging: A Teaching File

1486 Objectives The capability to create and efficiently combine knowledge from different locations around the world is becoming increasingly important as a determinant of competitive advantage and will be critical to R&D organizational success and survival. We cognize that the SNM9s conference is not only the world9s largest event focused exclusively on the latest developments in molecular imaging but also a state-of-the-art global innovative network in radiopharmaceutical field. The annual meeting also is an innovative network with knowledge and resources. Building upon the dynamic capabilities view of the R&D organizations, we will show how knowledge creation in R&D of the INER’s 68Ga generator and its related radiopharmaceutical synthesizer development has been changed from absorptive new knowledge in every SNM9s conference and transferring it from the executive managers to 68Ga project manager. We explain how INER effectively manages the process of such global knowledge sharing and identify, analyze and discuss key enablers for successful knowledge creation. Methods This case study analyzes local dynamic capabilities and the R&D specific advantages (RDSAs) from the SNM9s conferences. We identify four local dynamic capabilities as the driving forces behind the creation of new capability that revitalize the INER through continuous innovation. Each dynamic capability actually leverages the INER’s resources. Results Four local-dynamic-capabilities: 1. Discussing the study feedback reporting about SNM9s annual meeting and designing the new R&D strategy and Key-Performance-Indicators. 2. Developing new competence with activating prior knowledge. 3. Expanding collaborations between industry and professional societies. 4. Understanding the exact ramifications between the existed knowledge/technology and potential paradigm shift. Conclusions INER was proved successful in tapping global knowledge bases for technology development with the new strategy of learn-global, act-local

Customer portfolio planning in a business network context

In an increasingly globalised business environment, it is no longer adequate to analyse and develop supplier-customer relationship portfolios without consideration of a firm's network relationships. While research in business relationships has examined resource allocation and strategy development in the context of a dyadic relationship, portfolios and network relationships, little is known about the network effects of a focal firm's relationships on its performance particularly from both supplier and customer evaluations. The present study attempts to fill this gap by developing a customer portfolio framework that includes four levels of business relationships, and integrates a resource-based view and industry determinants of competitive advantage. The proposed framework is applied and analysed using data of UK-based food service companies. The main results show that a focal relationship performance is influenced by both industry and resource-based advantages in a business network context. The results also suggest that a focal firm can better enhance its competitive position with the knowledge of network effects and interdependence of strategic actions in a business network context.

Knowledge creation and transfer in a cross‐cultural context—empirical evidence from Tyco Flow Control

AbstractThe capability of multinational corporations (MNCs) to create and efficiently combine knowledge from different locations around the world is becoming increasingly important as a determinant of competitive advantage and will be more and more critical to their success and survival. Consequently, cultural differences and cross‐cultural contexts play an essential role for and significantly influence global knowledge creation and management. This paper presents a case study resulting from a current empirical research project on knowledge management and the transfer of knowledge within organizations of MNCs. We describe and analyze the efforts of global market leader Tyco Flow Control (TFC)'s Japanese subsidiary KTM to transfer relevant—and often highly tacit—knowledge to a newly acquired production site in Taiwan. Challenges and difficulties encountered in the process of global knowledge management—in this case the transfer of knowledge from Japan to Taiwan—as well as the creation of new knowledge locally and its feedback—are illustrated and carefully examined. Finally, we discuss our findings and highlight practical implications for managers and international corporations in a global business environment. Copyright © 2007 John Wiley & Sons, Ltd.

Intangible project management assets as determinants of competitive advantage

PurposeTo explore the role of intangible project management assets in achievement of competitive advantage from the project management process through it being valuable, rare, inimitable, and having organizational support.Design/methodology/approachData were collected on tangible and intangible project management process assets and competitive characteristics of the project management process using an online survey of North American Project Management Institute™ members. Three key tangible asset factors, one intangible asset factor, and three competitive characteristics were identified using exploratory factor analysis. The relationship between these project management assets and project management process characteristics are examined using multivariate analysis.FindingsIntangible project management assets are found to be a source of competitive advantage, directly and through a mediating role in the relationship between tangible project management assets and the competitive characteristics of the project management process.Practical implicationsThis study highlights the importance of developing intangible project management assets, in addition to investment in tangible project management assets, to achieve competitive advantage from the process.Research limitations/implicationsThis was an exploratory study. The authors expect to further develop the instrument, refine the model and constructs, and test it with a larger sample.Originality/valueFew papers have used the Resource Based View lens and applied it to project management. This paper contributes to the literature on the Resource Based View of the firm and to an improved understanding of project management as a source of competitive advantage.

The Determinants of Competitive Advantage of Brazilian Exporting Firms

This paper investigates the determinants of competitive advantage of a developing country's exporting firms. It brings at least two innovations. First, we employ an unprecedented database in the analysis of firms' international competitiveness. The database is the result of the compilation of micro-data of firms and their employees, exports, and capital ownership. Second, it investigates the importance of education, technology and scale of production as determinants of international competitiveness of firms from a developing country. The results show that these variables play an important role in explaining the international competitiveness of firms, and the limitation of explanations based solely on allocation and factor intensity as determinants of developing countries exports.

Determinants of Poland's Competitive Advantage in the Logistics Sector

This paper discusses the transformation within the distribution and logistics sector in Poland. The privatization process and business growth, in conjunction with foreign direct investment, have created a very competitive environment. A modified version of Porter's determinants of the competitive advantage model is used to illustrate changes in this industry. Models are presented depicting business logistics in Poland before and after the transformation. Twelve firms operating in this sector were studied. Problems and opportunities are discussed as they relate to business logistics in Poland. Eventual membership in the European Union will further expand markets, as well as modernize Poland's infrastructure and business logistics systems.

On the crest of a wave: the New Zealand boat-building cluster

This paper uses qualitative research to study how the New Zealand boat-building cluster evolved and how world-class competitive capabilities developed within this cluster. Porter's cluster theory is tested in this paper and the findings confirm most of his determinants of a cluster. The main contribution of this paper, however, is that it identifies additional determinants of competitive advantage within this cluster. Two such determinants are the drive for internationalisation and the role of entrepreneurs in developing the cluster. In contrast to the existing literature, the paper shows how internationalisation contributed to the development of the cluster rather than the reverse. It was through the process of internationalisation that firms started to specialise and differentiate their products and to appreciate the benefits of collaborating with each other as they tried to enter and expand in international markets. In addition, this study confirms the important role played by entrepreneurial leaders within the industry who acted as catalysts to develop this cluster.

Competitive advantage: what’s luck got to do with it?

Luck remains an elusive theoretical concept in the business literature yet a fascinating practical phenomenon in business reality. In addition to effective strategic maneuvering and well‐run internal management, luck often plays a non‐trivial role as a determinant of competitive advantage and firm performance. Understanding the various types of luck and the contextual conditions under which luck strikes is therefore expected to help a firm gain competitive advantage. This paper advances a typology of different scenarios of luck – pure luck, prepared luck, useful weeds, and skunk work – and expounds the strategic implications of these scenarios for the firm’s search for competitive advantage. Taking a proactive approach, it untangles the typical environmental sources of luck as well as the intra‐firm mechanisms and processes through which a firm could better induce, recognize, and exploit lucky incidents of innovations from useful weeds or skunk works.

Allying for quality excellence: scope for expert systems in supplier quality management

Over the past decade, quality managers and scholars have focused increased attention on supplier quality as a key resource for organisations. This paper presents the results of an exploratory study into how organisations rank supplier selection attributes and the extent to which use is made of decision support systems (expert systems in particular) in supplier quality management. Overall, quality was ranked the most important attribute. Paradoxically, decision‐support/knowledge‐based systems are not being utilized in solving the multi‐criteria decision problem inherent in supplier quality management. It is speculated that the lack of robust strategy for combining both human and artificial intelligence in supplier quality integration means that many organisations are making themselves vulnerable as out‐sourcing and strategic partnerships become important determinants of competitive advantage. Consequently, this paper assesses the scope for expert systems, a branch of artificial intelligence that is capable of helping organisations to co‐ordinate and harness potentially diverse sources of input resources in supplier quality management.

Different skills and knowledge for different times: training in an Australian retail bank

This article explores the relationship between an Australian financial institution’s training programme and its commercial fortunes, in particular its mix of technical skills and social skills training. In this industry, price and product differentiation are limited, and customer service is the principal determinant of competitive advantage. Social skills training should theoretically be crucial to gaining competitive advantage. This study involved interviews with the bank’s state and national managers, observations of different types of training courses and analysis of training programme documentation. It was found that during periods of intense pressure from the marketplace, managerial perceptions and budgetary constraints placed a higher priority on technical skills training over social skills training. This had significant implications for employees’ personal and career development in internal and external labour markets.

Cities and Competitiveness

Improved competitiveness, as we all know, is the path to economic nirvana. Plainly, it is a sought-after property of any economy: the term is frequently used by politicians and commentators on economic and business matters. As cities increasingly engage in competition with one another at different levels, the determinants of competitive advantage are coming under intense scrutiny. Many an economic development strategyÐ whether at national, regional or urban levelÐ starts from the premise that `something can be done’ to make an economy more competitive. There is a high-powered Competitiveness Advisory Group which reports to the European Commission (Jacquemin and Pench, 1997); the US has a special commission for competitiveness and the UK government produced a succession of White Papers on the subject in the 1990s. In the latest, the new Labour government highlights the need for the `right local environment for business success’ (Department of Trade and Industry, 1998). The OECD (1996, 1997a, 1997b) too has published a series of reports on the subject, looking particularly at new industries. But there is precious little agreement either on what the term `competitiveness’ means or on how policy should aim to enhance it. Yet most people have an instinctive understanding that some economies function better than others and that there are systematic reasons for this. We know one when we see one, but it is dif® cult to de® ne an elephant. It tends to be taken for granted that some cities have lost their competitive edge, although it is less obvious what variables demonstrate this. In many parts of the world, major cities that were the powerhouses of their respective economies have lost ground substantially. The decline of traditional manufacturing or mining lies behind the relative decline of many of the `rustbelt’ cities of the North and East of the US or the old industrial cities of northern Europe. The poor economic performance and growing social problems of many British cities, especially over the past three decades, have prompted searching questions about their competitiveness and whether or not they specialise in the `right’ sorts of activities. It can also be argued that globalisation, advances in information technology and farreaching structural change have altered the terms of competition between cities (JensenButler et al., 1997). Jockeying for position between the large ® nancial centres such as London, New York and Tokyo has been recognised for some time (Sassen, 1991; Frost and Spence, 1993). European integration impels cities to be more alert to the