Resource-based View Of Competitive Advantage Research Articles

Capability accumulation and conglomeratization in the information age

The past twenty years have witnessed the emergence of internet conglomerates fueled by acquisitions. We build a simple model of network formation to study this. Following the resource-based view of competitive advantage from the management literature we endow firms with capabilities which drive their competitiveness across markets. Firms can merge to combine their capabilities, spin-off new firms by partitioning their capabilities, or procure unassigned capabilities. We study stable industry structures (stable networks) in which none of these deviations are profitable. We find an upper and lower bound on the size of the largest firm, and show that as markets value more of the same capabilities abrupt increases in these bounds occur.

Strategic logistics outsourcing effectiveness through the implementation of 4PL – an analysis of selected industrial applications

Purpose: The purpose of this paper is to investigate the effectiveness of strategic logistics outsourcing through the implementation of 4PL to support the development of competitive advantage for manufacturing firms. Design/methodology/approach: Applying the strategic logistics outsourcing theory along with the resource-based view of competitive advantage, the authors point out the vital role of strategic logistics outsourcing in the manufacturing firm competitiveness. The data was collected using questionnaires with 30 manufacturing firms and analysed on effectiveness statistics and t-test to determine the effect of strategic logistics outsourcing on developing the competitive advantage for manufacturing firms. Findings: The findings indicate that cost reduction, efficient utilization of resources in the supply chain, and ICT application in 4PL services are key drivers to the competitive advantage of manufacturing firms. Research/practical implications: The research proposes to use a 4th party logistics as a strategic logistics outsourcing provider for achieving the competitive advantage for manufacturing firms. Originality/value: This is one of the first studies that provide an empirical analysis on the effect of strategic logistics outsourcing in developing the competitive advantage for manufacturing firms.

Estimating the duration of competitive advantage from emerging technology adoption

This paper proposes a method for estimating the expected duration of competitive advantage from emerging technology adoption for the average adopting firm. The proposed method relies on publicly available data (e.g., web search interest, news articles, book titles, and firm disclosures) and integrates elements from diffusion of innovation theory, hype cycles, and resource-based view of competitive advantage. We validate this method by applying it to two mature technologies, namely ERP and cloud computing, for which we come up with estimates consistent with findings from prior studies. Leveraging our method, researchers and professionals can use readily available data to make their own estimations. Such estimates can inform researchers in answering research questions related to duration of competitive advantage from technology adoption. They can inform professionals in making better business decisions such as forecasting the net present value of an investment in an emerging technology.

A Critical Discourse of EI and CA in Emerging Economies: The Place of Nigeria Within the Global Innovation Ecosystems

This study explores the levels of and barriers to entrepreneurial innovation (EI) and competitive advantage (CA) in emerging economies, and situates the findings within the Nigeria’s global innovation ecosystems. A qualitative research approach is preferred relying on the secondary data extracted from the reports of Global Competitiveness Index (GCI) and enriched by scholarly works including insights from the reports of Global Entrepreneurship Index (GEI). The extracted data from the afore-mentioned sources were critically reviewed and analysed using content analysis to understand the connection between EI and CA. At the end of the analysis, the study found that for 10 years (2008–2017), Nigeria manifested low EI and CA on the GCI ranking, whereas other African countries such as Ghana, Cameroon and South Africa, with lesser economic resources, did comparatively better. Second, it was found that, the key barriers to EI and CA are infrastructural neglect, lack of strong regulatory institutions, weak macroeconomic environment, weak technological readiness, poor business sophistication and low innovation among others. The study improves understanding of theoretical, managerial and policy implications of EI and CA. It also provides appropriate strategic suggestions for stimulating EI and enhancing CA at both national and industry levels in Nigeria. The study contributes to the raging debates on EI and CA in emerging economies. It also supports the Schumpeter’s creative discovery theory and resource-based view of CA.

Pilar-pilar Keunggulan Kompetitif: Sebuah Pandangan Berbasis Sumber Daya

This article describes the economic activities that underlie a resource-based view of competitive advantage and integrate existing perspectives into a model of saving from resources and company performance. The essence of this model are the four conditions that underlie sustainable competitive advantage, all of which must be met. These include superior resources (heterogeneity in an industry), ex post limits to competition, imperfections in resource mobility, and limits before competition (ex ante limits to competition). In the concluding section, application models are discussed both for single business strategies and corporate strategies.

Toward a Perspective on R&D Outsourcing: RBV and Firm Performance

This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which maintains capabilities that are valuable, rare, imitable, and non-substitutable (VRIN), and should be internalized in the firm. Traditional business formation literature is also supportive of keeping R&D “inhouse”. R&D outsourcing research is leveraged to posit possible reasons for the increased amount of outsourced R&D. Testable propositions are included that look at factors for R&D outsource decisions and also the impact of these decisions on firm performance. An R&D entropy statistic is introduced as well as several R&D characteristics useful in the decision-making process to create R&D.

IT-business Alignment and Resource-based View of Competitive Advantage: Intangible Assets of Korean SMEs

IT-business Alignment and Resource-based View of Competitive Advantage: Intangible Assets of Korean SMEs

Manufacturing flexibility through outsourcing: effects of contingencies

Purpose– The purpose of this paper is to examine the influence of organizational context on the relationships between outsourcing and manufacturing flexibility. In doing so, the authors study four types of manufacturing flexibility: product, mix, volume, and labor competence flexibility.Design/methodology/approach– Based on transaction cost economics theory and resource-based view of competitive advantage, the authors focus on economies of scale and scope, asset specificity, organizational learning, and dynamic capabilities as contingencies affecting outsourcing-flexibility relationships. Combining theoretically developed propositions with insights from case studies of 11 manufacturing companies that outsourced some portion of their manufacturing, the authors derive grounded hypotheses.Findings– Empirical results show that in some cases the effects of outsourcing on different types of manufacturing flexibility vary based upon some contingency factors.Research limitations/implications– Due to the qualitative nature and the geographical focus of the empirical examination, applicability of the findings to other contexts may be limited.Practical implications– The authors point out specific contingencies that managers should consider when targeting manufacturing flexibility through outsourcing.Originality/value– This paper presents the interrelationships among outsourcing of manufacturing activities, four types of manufacturing flexibilities, and theoretically derived contingencies. Based on evidence from the analyzed cases, the authors find indications that some contingencies moderate outsourcing-flexibility relationships. In addition, this paper introduces a new type of manufacturing flexibility: labor competence flexibility, which is defined as the ability of a company's workforce to deal with technology driven additions to and subtractions from products over time.

Logistics and supply chain process integration as a source of competitive advantage

Purpose– The purpose of this paper is to investigate the effectiveness of logistics and supply chain integration on firm competitiveness in manufacturing firms.Design/methodology/approach– Utilizing the resource-based view of competitive advantage along with the transaction cost economics theory, the authors address the critical role of logistics and supply chain strategy as the driver of logistics and supply chain integration and firm competitiveness. Structural equation modeling is used to determine the effect of two sets of logistics and supply chain integration practices (logistics/supply chain information integration and logistics/supply chain process integration) along with logistics outsourcing decision practices (logistics investment decisions and private warehousing decisions) on firm competitiveness.Findings– The results indicate that logistics/supply chain strategy is the main driver of logistics and supply chain integration and logistics decisions. Furthermore, the findings suggest that logistics/supply chain process integration is the most significant predictor of firm's competitive position.Research limitations/implications– Further examination and testing of the proposed model across multiple contexts is necessary for validity of the findings.Originality/value– This is one of the first studies that provide an empirical analysis on the importance of different sources of integration (information and process) in logistics and supply chain and their impact on firm competitiveness.

Differentiating aspects of product innovation processes in the food industry

Purpose – The purpose of this paper is to sketch a comparative account of NPD approaches between registered New Zealand food companies that are doing some sort of functional foods (FF) development (Group 1) and those that are not (Group 2); to generate a better understanding of differences and commonalities in their NPD approaches from resource-based view of competitive advantage. Design/methodology/approach – This paper opted an exploratory approach using a quantitative survey across food manufacturing companies in New Zealand. The primary foci of this empirical investigation were: orientation towards the NPD, innovation processes, collaborative NPD links and routes to commercialisation. Findings – The results (based on a 22 per cent response rate) show a significant difference (p<0.05) in the aims and mode of NPD between Groups 1 and 2. Further it was observed that food companies in Group 1 have significantly (p<0.05) more diverse external collaborations with broader aims to collaborate, in comparison with food companies in Group 2. Research limitations/implications – This study was conducted in New Zealand and thus generalisability of the findings may have to be interpreted carefully. Practical implications – The traditional NPD approach (independent and closed NPD), with loose intellectual property protection practices, dominates the food manufacturing industry in New Zealand. Research-oriented collaborations need to be strengthened in their scope and content to develop the innovative capabilities and capacities of small and medium enterprises (SME's) within future value-added food productions. Originality/value – This research provides the comparative narration of innovation process of food manufacturing companies with reference to FFs development.

Knowledge and strategic management

The article summarizes recent developments in the field of knowledge management and its vital influence on strategic management. Knowledge has become a resource of key importance with regard to the competitive advantage of a business. It thus strengthens the resource-based view of competitive advantage and develops it further by providing guidelines for developing, storing, and sharing knowledge within a business with the use of the concept of organisational learning. Tacit and explicit knowledge is distinguished in order to differentiate their contribution towards the competitiveness of a business. Based on these developments major trends affecting current development of strategic management are defined as well as recommendations drawn from the experience of leading subjects in the field.

A resource-based view of competitive advantage at the Port of Singapore

The purpose of this paper is to discuss the resources, including operations and information technology that have contributed to the competitive position of the Port of Singapore. We present a detailed discussion of the Port and its resources, and analyze the case using the resource-based view of strategy. A firm with a competitive advantage excels in time, quality, or cost, or a combination of such over its competitors. We argue that a combination of resources including supportive government policies, ample investment, and well thought out operations and information technology along with location and a natural deep harbor to help create a sustainable advantage for the Port. We find that Singapore compensated for some of its natural disadvantages like small land area by successfully applying information technology in critical areas to increase the island's capacity to handle shipping.

How leveraging human resource capital with its competitive distinctiveness enhances the performance of commercial and public organizations

Although scholars agree that complex relationships between organizations' actual human resources (i.e., human capital stock) and means of leveraging these resources may influence performance, little empirical work has tested such propositions directly. We collected two primary data sets from privateand public-sector organizations in Israel. The multiplicative interaction between perceived human resources capital and distinctive value derived from that HR capital was significantly related to various measures of perceived and objective organizational performance. Having higher levels of human resources capital was strongly associated with performance only when top managers perceived that these resources provided distinctive value in terms of being highly valuable, inimitable, rare, and nonsubstitutable. We discuss the implications of these findings for research on strategic human resource management and the resource-based view of competitive advantage, as well as for practical efforts to develop firm-specific human resource capital that is inherently distinctive. © 2005 Wiley Periodicals, Inc.

Knowledge, Performance, and Exporter Satisfaction

Managers' satisfaction with their exporting activities may significantly affect firms' future exporting behavior, yet it has been examined in few studies. Built on the theory of disconfirmation of expectation and the resource-based view of competitive advantage, we propose and test a model of exporter satisfaction that identifies three groups of antecedents to satisfaction. Background knowledge lays the foundation for developing export marketing expertise, which is directly responsible for export performance in terms of profitability and disconfirmation of prior expectations. Exporter satisfaction is proposed to be a function of performance. Empirical support was found for ten of the eleven hypothesized relationships.

Creating and sustaining ethical capability in the multi-national corporation

Multinational corporations are continually seeking sources of competitive advantage. In addition to strategic, technological, financial, and organizational capabilities as sources of competitive advantage, this paper argues that ethical capability also can be an important source of sustainable advantage. The paper presents the challenges of ethics in an international context, discusses the resource-based view of competitive advantage, and describes how a multinational company can develop and sustain ethical capability through the related processes of transformational leadership, organizational learning, and human resource management.

Assessing The Performance Impacts of Information Systems From The Resource-Based Perspective: An Empirical Test of The Indirect Effect of IS

Research into the strategic impacts of information systems (IS) from the resource-based view of competitive advantage has increasingly embraced the indirecteffect of IS on firm performance; that is, IS interact with other complementaryorganizational resources in influencing firm performance. Using both survey andarchival data, this study set out to test the indirect effect of IS and determine thecomplementary organizational resources contributing to IS impacts on firm performance.The results provide additional evidence in support of the indirect performanceeffect of IS. Specifically, the study found that the performance impacts ofIS arose from their interactions with firm-specific knowledge, information, verticalintegration and related diversification that complemented IS.