Market-based View Research Articles

The gender pay gap in European executive boards: the role of executives’ pathway into the board

We provide cross-country evidence on the gender pay gap on executive boards in large European companies and show that the pathway into the board – internal promotion versus external recruitment – matters for the size of the gap. We find evidence that among executives, women are paid less than men – especially when they were recruited from outside. Since for external candidates, gender stereotyping, and discrimination might be more pronounced than for internal candidates, our results support a power-and-discrimination-based view rather than a market-based view. Our empirical analysis is based on individual pay data for 359 executive board members in 75 firms in six countries (UK, France, Germany, Italy, Spain, and Switzerland) from 2011 to 2014. We find an unadjusted pay penalty for women of around 17% and an estimated adjusted gender pay gap of around 11%. The size of the adjusted gender pay gap crucially depends on the executives’ pathway into the board: Among the executives who were recruited from outside the firm, women receive an estimated 19% less than men. Our article suggests that the pathway into the board matters for women’s bargaining position and should be explored in future studies.

Enhancing Export Activities of Small and Medium Enterprises: A Case Study of Qatari SMEs

Although there are various benefits for SMEs to expand their businesses to international markets, there are various obstacles that discourage them to move internationally, especially in emerging markets. This study focuses on the capacity building to enhance SME export activities in an emerging market. Even though the latest literature in the area of export performance have focused on firms from the emerging countries, studies in this area are still limited. Earlier research in this area has mostly focused solely on the determinants of exports performance from either internal factors, external factors or both without using adequately potential mediating factors which could affect export performance. This paper develops and tests a holistic framework for SME export considering all aspects of export drivers, and inhibitors. This theoretical framework incorporates and tests three potential mediators (i.e., business strategy, export marketing strategy and innovation strategy) as well. This study draws on the contingency framework, resource-based view and market-based view to provide a holistic understanding of the research issue. It is based on primary data collected by survey and three main methods of descriptive statistics, confirmatory factor analysis, and structural equation modelling for quantitative analysis. The initial data analysis confirms and shows the significant effects of various internal and external firms’ determinants on their export performance. The final research finding have significant implications for understanding all key drivers of SME export in Qatar, and it helps policymakers and regulators to improve the current SME ecosystem in Qatar. Finally, the final results of this study can be extended to other emerging markets with similar economic and legal structure.

Financial Structure and Economic Growth Nexus Revisited

This paper empirically reassesses the long-debated relationship between financial structure and economic growth. Specifically, we examine whether the effect of financial structure on economic growth is affected by the financial structure disproportion, banking crisis, economic volatility, and level of financial development. We employ the generalized method of moments estimation to a large panel of 100 countries over the 1971-2015 period. Although the main result supports market-based view, the positive effect of stock market development relative to banking system decreases significantly if financial structure is unbalanced. Our findings are robust to a variety of sensitivity check, including different measures of financial structure, periods, and model specifications.

The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises

This paper aims to develop the role of internal factors, external factors, and risk management variables on MSMEs’ business performance. This research was conducted in underdeveloped regions of five provinces, which includes 14 cities in Indonesia—East Java, West Sumatra, North Sumatra, West Nusa Tenggara, and East Nusa Tenggara. The Resource-based view and Market-based view methods were chosen to measure 1401 data of MSMEs. The data was collected using offline questionnaires then processed using SPSS. This paper demonstrates a remarkable outcome for MSMEs, showing the significant result of risk management factors that includes risk assessment of marketing and financial management. Other independent variables of internal, external, and risk management factors also show important outcomes on MSMEs performance. This paper offers additional value of the implementation of ERM in MSMEs, which are spread in underdeveloped regions in Indonesia. The findings shown that the activity of the enterprises in identifying and managing risk would bring up the significant effect on operational business performances.

Strategy: An Annotated Bibliography

This note provides a short overview of the evolution of strategic management starting with its military origin and a particular emphasis on the schools of thought on strategic management, namely the Market-Based View (MBV), the Resource-Based View (RBV) and the Dynamic-Capability View (DCV). It is primarily aimed at graduate students providing them with the capability to identify the seminal papers which are relevant for their academic research.

Efficiency Frontier Identification Based on Operations Strategy - A Retrospective Analysis of Leading Authors

Increasingly, organizations must be able to compete in the context of global standards. The operations function has an important role in this scenario as the operational efficiency can contribute to the competitive advantage development. The operations strategy, in its turn, has an important role in making feasible operational efficiency. This paper seeks to investigate the literature about Efficiency Frontier Identification in the context of Operations Strategy. This is accomplished through a comprehensive systematic literature review supported by bibliometric analysis techniques. The search was realized at web of science and Scopus databases, screening papers between 1997 and 2017, all in English language and published in refereed journals. The systematic literature review is based on the Proknow-C process framework and resulted in 19 papers fully related to Operations Strategy and Efficiency Frontier identification. Such a set of papers is reviewed bringing out the research standard. A bibliometric analysis is also presented, including keywords, main authors and journals in a timeframe perspective. The paper brings insights into future work opportunities, revealing that the main publication’s focus is on the resource-based view approach and the concept of capabilities. Therefore, there is a clear need for extending the research with a focus on the market-based view approach.

ENTERPRISES PERFORMANCE THROUGH INTERNAL RESOURCE INTEGRATION AND MARKET ORIENTATION BASED ON COMPETITIVE ADVANTAGES

Every company tries to achieve goals to gain profit and win the competition. To achieve this goal, the company must be able to demonstrate a competitive advantage. Therefore, the company always strives to gain competitive advantage by identifying, managing and optimizing their internal resources in the form of tangible and intangible assets that have superior characteristics as the power of generating competitive advantage. The sustainable competitive advantage by empowering their internal company resources can be defined as Research-Based View (RBV). The importance of research based views is contradicting with Market Based View (MBV) which stated that the more market oriented the more superior their competitive position. By using qualitative research (literature review), this study aims to understand and investigate how to create company performances through both point of views which is internal resources integration and market orientation based on competitive advantages.

Competitive advantage of a franchisee in the software market: the case of Totvs

In highly competitive technology markets, such as the market in which Enterprise Resource Management (ERP) service providers do business, it has become of fundamental importance to understand the factors that create competitive advantages. This paper presents the support from the theoretical frameworks offered by the Resource-based View (RBV) and the Market-based View (MBV) to attempt to explain the competitive advantage held by Totvs Curitiba, a franchise of Totvs, which in turn is a Brazilian company that is a market leader in ERP service provision. In methodological terms, this is a Case Study for which data was collected during interviews and by observation and review of secondary documentary sources. The results suggest that the franchise's market-leading position was built on a relationship, which is identifiable in the results of this study, between the strategies adopted, resources controlled and competences developed.

Strategic Marketing Management: Achieving Superior Business Performance through Intelligent Marketing Strategy

In the age of drastic changes organizations need sustainable competitive advantage to cope with changes and to succeed. They can create, sustain and use competitive advantage through strategic management. Organizations can formulate strategies that their implementation results in sustainable competitive advantage. Marketing strategies seem to be an important type of these strategies. Traditionally, according to an integrated approach which integrates resource-based view (RBV) and market-based view, organizations could develop marketing strategies based on their internal capabilities and external position. Then they implement these strategies to create competitive advantage through their core competencies include creating value for customers, attracting and satisfying them. Marketing strategies play two important roles to sustain competitive advantage: (1) encourage customers to return (according to market-based view), and (2) create distinctive competencies through making core competencies VRIO (according to RBV). VRIO refers to Valuable, Rare, not Imitable and to be able to Organize. In today's turbulent environment, VRIO and customer retention are necessary but not adequate to sustain competitive advantage and achieve superior performance. Then organizations must be market/customer oriented, think and act based on innovative knowledge, make a useful and long term relationship with their customers. This qualification is for those organizations that are able to be knowledge-based, formulate its marketing strategies and sustain its competitive advantage based on its own knowledge. In other words its marketing strategy is intelligent. Organizations must consider innovative knowledge as a new input to sustain competitive advantage and to develop intelligent marketing strategy (more than internal capability and external position as existing inputs). In this paper, we are going to contribute a new perspective to develop marketing strategy. It is sustaining competitive advantage and developing intelligent marketing strategy (IMS) through innovative knowledge to achieve superior performance. Accordingly we have developed a comprehensive model of Intelligent Marketing Strategy.

Who Captures the Value Created with Human Capital? A Market-Based View

When firms create value with employees’ human capital, who captures this value—employees or their employing firms? This paper explains that the answer to this question depends both on the type of human capital deployed and characteristics of the labor market from which the firm hired the employees. When labor markets are highly competitive, individuals will capture more of the value their general human capital and discretionary firm-specific human capital creates, and firms and individuals will share the value created by required firm-specific and co-specialized human capital. When labor markets are less competitive, who captures the value created with a particular type of human capital depends on the reasons why the labor market is less competitive and each party’s bargaining power and negotiation skill. The paper closes with the implications of the theory developed in this paper for human resources, organizational behavior, and strategic management scholarship and practice.

Successful failure: what Foucault can teach us about privacy self-management in a world of Facebook and big data

The "privacy paradox" refers to the discrepancy between the concern individuals express for their privacy and the apparently low value they actually assign to it when they readily trade personal information for low-value goods online. In this paper, I argue that the privacy paradox masks a more important paradox: the self-management model of privacy embedded in notice-and-consent pages on websites and other, analogous practices can be readily shown to underprotect privacy, even in the economic terms favored by its advocates. The real question, then, is why privacy self-management occupies such a prominent position in privacy law and regulation. Borrowing from Foucault's late writings, I argue that this failure to protect privacy is also a success in ethical subject formation, as it actively pushes privacy norms and practices in a neoliberal direction. In other words, privacy self-management isn't about protecting people's privacy; it's about inculcating the idea that privacy is an individual, commodified good that can be traded for other market goods. Along the way, the self-management regime forces privacy into the market, obstructs the functioning of other, more social, understandings of privacy, and occludes the various ways that individuals attempt to resist adopting the market-based view of themselves and their privacy. Throughout, I use the analytics practices of Facebook and social networking sites as a sustained case study of the point.

PROPOSTA DE MODELO DE MEDI�?�?ES PARA CONTRATA�?�?O DO GERENCIAMENTO DE PROCESSO DE NEG�?CIO (BUSINESS PROCESS MANAGEMENT- BPM)

In highly competitive technology markets, such as the market in which Enterprise Resource Management (ERP) service providers do business, it has become of fundamental importance to understand the factors that create competitive advantages. This paper presents the support from the theoretical frameworks offered by the Resource-based View (RBV) and the Market-based View (MBV) to attempt to explain the competitive advantage held by Totvs Curitiba, a franchise of Totvs, which in turn is a Brazilian company that is a market leader in ERP service provision. In methodological terms, this is a Case Study for which data was collected during interviews and by observation and review of secondary documentary sources. The results suggest that the franchise's market-leading position was built on a relationship, which is identifiable in the results of this study, between the strategies adopted, resources controlled and competences developed.

Determinants and outcomes of dual distribution: an international study

Purpose– The purpose of this paper is to analyze the coexistence of independent and manufacturer-owned distributors within the same distribution system. In particular, the authors seek to identify those factors that determine the use of dual distribution and the effect of dual distribution systems on different economic outcomes.Design/methodology/approach– Using a case study-based approach, the authors compare different brands in different European markets of a German automobile manufacturer using 24 expert interviews in Germany, Sweden and Spain.Findings– Our results demonstrate the importance of limited resources, investment specificity, location, divergent interests and competitive strategies for the development of dual distribution structures. The results show that the overall distribution system performance is positively related to dual distribution.Research limitations/implications– The generalizability of the findings is limited due to the use of cases for different brands of one large corporation within a specific industry and the limited number of countries that were examined. This study is also limited to the subjective evaluation of firm performance and the qualitative evidence provided by the interviewees in our sample group. Our study contributes to the ongoing debate on the use of independent and manufacturer-owned distributors among distributive vertical chains. Based on the qualitative findings, propositions for future research and managerial implications are provided.Originality/value– While in previous research, the explanatory approach of make-or-buy has often been used for examining dual distribution, the authors combine insights from different theoretical streams (transaction cost theory, market-based view, resource-based view and principal-agent theory) to identify and empirically investigate the antecedents and outcomes of dual distribution. Furthermore, while prior research focused on single-country studies and franchise systems, the authors examine a multi-country sample in the automobile industry and expand the findings of the existing literature by covering different brands.

Conceptualization and Integration of Marketing Intelligence: The Case of an Industrial Manufacturer

Purpose: The primary goal of this article was to conceptualize a systematic marketing intelligence process for industrial manufacturers because, up until now, such concepts have only been focused on consumer goods settings. Hence, this article investigates how marketing intelligence activities are developed and managed effectively in industrial markets.Methodology/approach: The authors conducted a case study of Maschinenfabrik Reinhausen, a German based manufacturer of regulation technology for power transformers.Findings: We found that a systematic marketing intelligence process should be based on the resource- and market-based view of strategy as well as on the market orientation construct. When implementing marketing intelligence, the integration of the sales force within the whole process is the crucial lever for an industrial company. The formalization of the process is necessary to ensure its continuity and acceptance; however, the varying intensity allows the necessary flexibility of the process.Research implications: The constraints of the decisive process steps of marketing intelligence have to be further enhanced for industrial markets. It is important to find out how the integration of the sales force can best be designed to incorporate reward systems and motivation structures, and how to establish a corporate marketing-minded culture throughout the organization.Practical implications: The important steps for a well implemented marketing intelligence process are a preparation phase, followed by the gathering, analysis, and dissemination of information. This article highlights the success factors for each process step. Above all, managerial and organizational commitment is necessary for the implementation of the whole process.Originality/value/contribution: By focusing on the industrial manufacturing business, this study provides deep insights into a neglected area of research. Light needs to be shed on marketing intelligence in industrial markets, where the lack of traditional market research has to be compensated.

Entry Mode Strategies into the Brazil, Russia, India and China (BRIC) Markets

This article explores the relevance of different entry modes for Danish exporting small and medium enterprises (SMEs). Internal and external resources that influence the choice of entry modes into the Brazil, Russia, India and China (BRIC) markets are investigated from both a resource-based view (RBV) and a market-based view (MBV). The survey conducted by the University of Southern Denmark in 2012 is based on a sample of 177 Danish SMEs. Our results of this study show that Danish companies entering the BRIC markets mainly prefer low commitment modes. The more traditional internal factors (control, flexibility and risk) were evaluated less important than personnel and financial resources for the BRIC markets. The most important external factor was market potential whereas the trade barriers, cultural distance as well as the political and economical risk are viewed as main obstacles when internationalizing into distant markets. Managers can compensate the loss of control when choosing the lower commitment modes into distant markets by forming business networks and thereby gaining local knowledge.

Influence of Intuition and Capability on Accelerated Product Development in Big-Medium Scaled Food Companies in Indonesia

To face the pressure of competition, more and more companies perform accelerated product development by shortening the product development time so that the product will arrive at the market at the shortest time. Food industry has also performed accelerated product development. Using evolution theory, contingency theory, market-based view, and resource-based view a research model has been built. Results of the research’s initial identification show that food industry in Indonesia is in growth level towards maturity level. Meanwhile, competition in the food industry is in moderate level towards hypercompetition level. Tactics of accelerated product development often carried out is by simplifying the product development steps to eliminating the product development steps. The innovation type used is incremental innovation since it is fast and easy. Results of the research give information that intuition and capabilities are the main motivating factors for big-medium scaled food companies in Indonesia to accelerate product development. 

Successful Failure: What Foucault Can Teach Us About Privacy Self-Management in a World of Facebook and Big Data

The “privacy paradox” refers to the discrepancy between the concern individuals express for their privacy and the apparently low value they actually assign to it when they readily trade personal information for low-value goods online. In this paper, I argue that the privacy paradox masks a more important paradox: the self-management model of privacy embedded in notice-and-consent pages on websites and other, analogous practices can be readily shown to underprotect privacy, even in the economic terms favored by its advocates. The real question, then, is why privacy self-management occupies such a prominent position in privacy law and regulation. Borrowing from Foucault’s late writings, I argue that this failure to protect privacy is also a success in ethical subject formation, as it actively pushes privacy norms and practices in a neoliberal direction. In other words, privacy self-management isn’t about protecting people’s privacy; it’s about inculcating the idea that privacy is an individual, commodified good that can be traded for other market goods. Along the way, the self-management regime forces privacy into the market, obstructs the functioning of other, more social, understandings of privacy, and occludes the various ways that individuals attempt to resist adopting the market-based view of themselves and their privacy. Throughout, I use the analytics practices of Facebook and social networking sites as a sustained case study of the point.

Do you know your valuable customers?

Purpose–Customer knowledge has not yet been recognized as a possible source of strategic competitive advantage in expansion of the knowledge-based view. The purpose of this paper is, therefore, to gain initial insights into the strategic dimension of customers knowledge in order to enable companies to define, identify and motivate the right customers and work with them together on a strategically successful level.Design/methodology/approach–The following single case study is based on semi-structured interviews with nine employees and strategic customers as well as a document analysis in an entrepreneurially oriented smaller firm equipped with limited resources.Findings–The findings demonstrate that strategic customers take on a valuable position within the company. It appears that the strategic customer is more aware of his/her value than the company itself. A definition and first criteria of strategic customers could be determined and a systematic identification of strategic customers is possible with the help of this study.Research limitations/implications–The paper is an empirical contribution to the existing customer knowledge management literature and aids in gaining further insight into the definition, identification and motivation of strategic customers. A definition is derived based on a literature study and developed further through the results of the empirical analysis. An additional result of the empirical study showed that customer oriented knowledge management is a promising bridge between the knowledge- and market-based view.Originality/value–The apparent lack of resources in entrepreneurially oriented smaller firms can be overcome through the addition of external knowledge resources, which the paper refers to as strategic customers.

Strategy development based on intangibles in SMEs – an integrated approach

The approach in this paper is based on the principles of action research and rapid prototyping. The paper shows the current status of a ‘bottom-up’ research process dedicated to continuously developing and improving management instruments that suit the requirements of small and medium-sized enterprises (SMEs): pragmatic, easy-to-use and generating direct practical benefit. As a result, this paper links the concept of intangibles to the practical strategy development process in SMEs. The integration shown concerns several challenges: (1) Integrate the internal and external perspective on intangibles, and, by that, link the concept of intellectual capital (IC) as a resource-based view with the concept of customer value as a market-based view. (2) Integrate the theoretical concept of IC with a methodology for comprehensive strategy development. (3) Integrate the formulation and implementation of business strategies taking into account the actual practice in SMEs.

Market Orientation, Learning Organization and Dynamic Capability as Antecedents of Value Creation

Strategic competitiveness is achieved when a firm successfully formulate and implement a strategy of value creation. In order to create competitive advantage, the theory of competitive advantage have contributed to the present two major schools of the Market-Based View (MBV) and Resources-Based View (RBV), which both lead the company in creating a competitive advantage through superior value. The purpose of this paper is to examine the relationship between market orientation, learning organization and dynamic capability on value creation. Using a questionnaire survey, the paper is based on data collected from 105 owners or managers of industry creative in Indonesia. The partial least squares (PLS) structural equation modeling approach was used to analyze the data and test the hypotheses.The results indicate that, among the market orientation, learning organization, dynamic capability are significantly and positively related to value creation.