Source Of Competitive Advantage Research Articles

Corporate social irresponsibility and stakeholders’ support: evidence from a case study

Stakeholders’ decisions regarding whether to continue to support a firm after it has been perceived as culpable for socially irresponsible behaviour is “coin of the realm” in selecting which firms (or which parts of a firm) will be able to survive a corporate social irresponsibility (CSI) scandal. Our empirical setting is an embedded polar case of audience support, the Parmalat case, following a severe CSI scandal. The scandal represented a “trigger event” that ignited an active reevaluation of the firm on behalf of its stakeholders. We show that, while the firm’s cognitive legitimacy was not harmed by the CSI scandal, two dimensions of legitimacy played a key role in stakeholder evaluations: moral and pragmatic legitimacy. The capacity to manage the interplay between these two dimensions emerged as a key factor underlying stakeholders' support. Finally, we argue that if pragmatic legitimacy is feeble it is unlikely that the firm is able to maintain stakeholders' support. Our study suggests that possessing a sound source of competitive advantage in one (or more) of the businesses in which the firm operates is decisive to maintain the support of independent stakeholders following CSI scandal.

Knowledge sharing through empowering leadership: the roles of psychological empowerment and learning goal orientation

PurposeKnowledge sharing has become necessary for organizations as it is a source of competitive advantage. Therefore, this study aims to investigate how empowering leadership through psychological empowerment encourages employees’ knowledge-sharing (KS) behavior. This study further explores the moderating role of learning goal orientation (LGO) between psychological empowerment and KS behavior.Design/methodology/approachThis study collected data from 423 employees working in manufacturing and service organizations in two waves on convenience basis to tackle common method variance. The data were analyzed through structural equation modeling.FindingsThe results revealed that empowering leadership helps employees modify their KS behavior both directly and indirectly in the presence of psychological empowerment. Moreover, individuals high in LGO are more likely to involve in KS behavior when psychologically empowered.Research limitations/implicationsThis study used a cross-sectional design and suggests management focus on their working environment to enhance knowledge sharing among employees, which is possible through empowering leaders. The study further suggests management not ignore individual attributes during recruitment.Originality/valueDrawing upon job characteristics model and social exchange theory, this study explores the mediating role of psychological empowerment between empowering leadership and KS behavior and the moderating role of LGO on the association between psychological empowerment and KS behavior.

Fostering creative selling through ethics. An emotion‐based approach

AbstractResearch on salesperson creativity remains as one of the most under‐researched topics in the sales literature despite the evidence that encouraging creativity in the sales domain is a source of competitive advantage. This paper aims to fill this research gap by exploring the influence of perceived ethical climate on salesperson creative performance, paying special attention to the role that emotions play in this process. Data provided by 176 supervisor–salesperson dyads confirm that the trust/responsibility dimension of an ethical climate is positively related to salesperson creative selling by increasing salespeople's organizational pride. Similarly, the perception of unethical selling practices negatively affects salesperson organizational pride, reducing the expression of creative behaviors. Moreover, the negative effect of unethical selling practices on creative performance is stronger (more negative) when salespeople's identification with an organization increases. Managerial implications and future research directions are also addressed.

Vakrangee: changing lives in rural India

Learning outcomes The learning outcomes are as follows: to design an appropriate strategy for firms to succeed in low-income, price-sensitive markets; to appreciate how business model innovation can help to overcome the obstacles faced by firms when serving rural and semi-urban markets in an emerging economy; to identify possible threats to the business model and evaluate strategies to sustain growth in a dynamic environment; and to allow students to consider sources for competitive advantage and how to build a sustainable business model in low-income markets. Case overview/synopsis The case details the growth story of Vakrangee Limited (Vakrangee) from a technology consultancy firm to a technology-driven firm focused on creating the largest last-mile retail network providing various services in underserved parts of India, mainly rural India. The firm launched retail outlets called Vakrangee Kendras (VKs) in 2011 that evolved from non-exclusive stores offering a single line of e-governance services into technology-enabled franchisee-based exclusive stores that offered a multiple line of services such as banking, finance, insurance, ATM, e-commerce and logistics. VK however is witnessing competition from different players in different segments. Additionally, the dynamic business environment such as the growing penetration of smartphones and internet usage, heterogeneous needs of customers and government policies pose further threat to the company’s growth in the future. In the wake of these challenges, what should Vakrangee do to sustain its growth? Should it focus on cost-leadership or differentiation for strategic positioning? Complexity academic level This case can be used in an MBA or an executive management program, in courses on strategic management, entrepreneurship, services marketing and rural marketing. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Knowledge Transfer to Industry: How Non-Accounting Students Learn to Become Boundary Spanners during Industry-Related Collaboration

Knowledge has become the most important source of competitive advantage, this led to the important role of universities as producers of knowledge. However, the industrial activities of firms do not significantly explain differences in importance of a wide variety of channels through which knowledge between university and industry might be transferred. Therefore, this study focuses on the process by which non-accounting students become boundary spanners remains relatively unexplored. This study serves to shed new light on the matter by drawing on an in-depth study to stimulate industry adoption of a university knowledge transfer particularly on tax education among university non-accounting students. Non-accounting students have no or limited knowledge on taxation, lacking of awareness and knowledge in taxation law will be a problem and burden to them as the future taxpayer. Our rich dataset is a result of following the outcome of 150 non-accounting students from start to finish, in the program known as Hasil My Tax Buddy (HYTB, 2022). Our analyses offer novel insight to understand tax knowledge boundaries faced during engagement activities and a critical input to developing and improving boundary spanning abilities. Our findings offer important tax implications for research on industry-related collaboration and tax awareness.

The impact of organizational support for the project management process on project and firm performance

PurposeThis research draws on the resource-based view of the firm from strategic management and applies it to a study of competitive advantage in the project management context. The relationship between the characteristics of project management resources, focusing on organizational support for the project management process, and outcomes of the project management process are examined.Design/methodology/approachThis study uses data gathered from 437 North American project management professionals with an existing survey tool that was used in a prior smaller sample study. The study uses Barney’s VRIO framework that assesses resources as valuable (V), rare (R), inimitable (I) and organizationally supported to leverage their value (O). The conceptual model hypothesizes relationships between the project management asset characteristics (valuable, rare, and inimitable), organizational support for the project management process, and project management performance outcomes (both project and firm level). Hypotheses are tested using factors extracted from a confirmatory factor analysis (CFA). The factors extracted include two factors representing valuable project management asset characteristics, one factor representing rare project management asset characteristics, one factor representing inimitable project management asset characteristics, two factors representing organizational support for the project management process, one factor representing project-level performance and one factor representing firm-level performance.FindingsProject management assets that are considered valuable and organizational support for the project management process are found to contribute positively to project management process outcomes. No advantage was perceived from rare and inimitable project management assets. Project-level performance was found to significantly mediate the relationship between organizational support and firm-level performance.Practical implicationsThis study draws managerial attention to organizational support for the project management process as a source of competitive advantage through its positive affect on both project-as well as firm-level performance.Originality/valueThe study uses a survey tool from previous research with a new, larger dataset to contribute to the understanding of the importance of organizational support for the project management process in a quest for both project success as well as a firm's competitive advantage.

Digital ecosystem models in business: challenges of management theory and practice

Purpose: this article is aimed at identifying the economic effects arising out of the integration of companies within the framework of the digital business ecosystem.Methods: the article is based on the concept of the evolution of organizational systems in the context of the ecosystem approach, as well as on the provisions of the economic theory of network effects. The main methods of scientific research are represented by the structural- logical, bibliographic, computational-constructive and graphic method.Results: the review of current publications related to the issue being considered showed that in the era of the Internet and digital technologies, the main factor of economic benefit is the network effect or the demand scale effect, as well as the fact that a new source of competitive advantage and market dominance pertains to the ecosystem of users. It is revealed that the strategy of unification within the framework of digital business ecosystem allows companies to provide additional value for customers and meet the utmost number of their needs. Due to the analysis presented in this research, other economic effects, as well as the risks of integration strategies with the digital business ecosystem based on the example of the market of mobile applications designed to pay for fuel in Russia have been identified.Сonclusions and Relevance: currently, companies are increasingly adopting an ecosystem-oriented format of work when creating their business models, which allows them to scale their business at low cost and minimal investments, enter new markets, increase the customer's lifecycle and gain additional profit. Digital technologies bring the participants of business ecosystems to a new level of interaction thus leading to the reduction of barriers which prevent the synergetic effects from partner integration. The empirical analysis in the study also exposed potential risks of cooperation with the digital business ecosystem, as well as an alternative way of the organization's development strategy, which allows creating its own digital ecosystem in the future. The results have been tested in the process of improving the integration strategies of the company "Benzuber" and despite the fact that the analysis has a number of limitations, the findings might have practical implications for optimizing the development strategies of other companies.

Exploring Information and Communication Technologies as Driving Forces in Hotel SMEs Performance: Influence of Corporate Social Responsibility

This paper aims to analyze whether Corporate Social Responsibility (CSR) can be considered as a mediator variable on the relationship among Information and Communication Technologies (ICT) adoption and SMEs performance in the hotel industry due to the lack of general consensus on the direction of this relationship. Furthermore, future expectations about the economic cycle might be a determining factor in business decision-making. Therefore, we also analyze whether these expectations influence hotel managers to adopt CSR strategies and, indeed, influences on the hotel’s performance. To this end, partial least squares structural equation modeling (PLS-SEM) is applied to a sample of 117 Spanish hotel SMEs. These results have practical implications in considering ICT adoption as a source of competitive advantage that will facilitate the implementation of CSR practices in hotels, thus improving firm performance.

METHODOLOGY OF ORGANIZATION AND EVALUATION OF ECONOMIC EFFICIENCY OF CONSULTING AND LEGAL PROJECTS IN THE SYSTEM OF FUNCTIONING OF SMALL BUSINESS

"The ability of enterprises to change quickly in a rapidly developing market is one of the main conditions for successful business development. In order to maintain their viability, enterprises are forced to constantly evolve, rebuild, and introduce new technologies, which requires considerable effort, knowledge and skills, which nowadays are the main source of competitive advantage. The complication of economic processes at the present stage of modernization of Russia has caused the need to transfer knowledge, experience and methods of managerial work in a commodity form to an independent sphere of economic relations, which in turn contributed to the formation of national and international markets for consulting services. The service sector is a rapidly developing sector of the modern economy. The developing market required first the creation and then the expansion of professional services. The most significant changes in the services market are associated with the transformation of demand for consulting services, the need for which is becoming more and more conscious. In the practice of many countries, consulting services are an important factor in the effective functioning and development of business entities in market conditions. Currently, the demand for services for the development of integrated management systems, the introduction of new financial technologies, business valuation, marketing research has increased. At the same time, the client is interested in a comprehensive solution to the problems of organizing and doing business, in the effective implementation of projects. Keywords: costalting, efficiency, finance, project, evaluation, entrepreneurship, business, organization. "

The virtuous cycle of trust. Unveiling clues to successful innovation in the Fast Moving Consumer Goods industry

PurposeThis paper aims to shed light on features of successful innovation and on the role played by downstream open innovation (OI) dynamics in the Fast Moving Consumer Goods (FMCG) industry. It also explores the reasons for the decline in the number of disruptive innovations in this industry in the European Union (EU).Design/methodology/approachThe authors interpret the data in a Kantar consumer panel dataset on disruptive innovations in Spain through an exploratory research including in-depth interviews with 19 managers in the industry.FindingsResults show that downstream open innovation in this industry is mostly limited to the executional stage in the process and highlight the crucial role played by the point of purchase in the success of innovations. The authors build up a virtuous circle of innovation based on features such as the use of OI processes, company focus and marketing support, transparency and collaboration with retailers, as well as the product's uniqueness and its potential to become viral.Research limitations/implicationsThe paper focuses on Spain and, thus, results cannot be generalised. Further research in other countries would be interesting.Practical implicationsThe study describes the features of disruptive innovators and develops an extensive list of success factors.Social implicationsThe development of disruptive innovation is a source of competitive advantages and one of the most relevant activities of managers today. Nevertheless, the number of disruptive innovations is in decline, and only a few succeed, negatively affecting consumer welfare.Originality/valueThrough this study, the authors provide insights on the features of successful innovators in FMCGs and describe the factors affecting the decreasing trend in the number of breakthrough innovations. Further, this paper fulfils an identified need to study OI in low-tech industries.

Looking forward, looking back: Strategic organization and the business model concept

In the past decade, the business model has emerged as a fundamental strategic and organizational concept. In this essay, we first “look back” to synthesize recent research on designing high-performing business models into two influential research streams. Managerial cognition grapples with the role of holistic mental models and strategic thinking for designing effective configurations of business model attributes. Learning processes address the uncertainties that emerge from the major disruptions that create opportunities for new business models. We then “look forward” to the exciting work on business models that remains for both extending current research and exploring broad societal impacts. Overall, we argue that the business model is rapidly replacing strategy as the most significant source of competitive advantage.

Artificial Intelligence as a Process Optimization Driver under Industry 4.0 Framework and the Role of IIoT, a Bibliometric Analysis

Connected products generate data that are being seen as a key source of competitive advantage, and the management and processing of that data are generating new challenges in the industrial environment. This paper proposes a conceptual framework and preliminary findings to go deeper into a bibliometric analysis around the idea of artificial intelligence and machine learning (AI/ML) as a tool for the optimization of processes within the Industry 4.0 model. Methodologically, a technological mapping was carried out through an exercise on Scopus indexed database, the results of which were analyzed using bibliometric indicators. The bibliometric study is completed with a screening of relevant papers searching for linking among the industrial Internet of Thing (IIoT) or Internet of Thing (IoT), IA/ML and process optimization. Finally, this paper gives information about the state-of-the-art AI/ML applied to the optimization of industrial processes and presents a novel Canadian startup that has a business model that aims to make AI/ML easy to use in the industrial world towards a lean processes strategy.

Intelligent System Construction Paths for Digitalization Process of Real Economy: A Study from the Perspective of Artificial Intelligence and Platform Leverage

This study studies the internal driving force and system construction issues in the integration of information technology and traditional business. Established on theory of platform leverage in the value creation, we use causal analysis and case studies to explore two closely related questions with data of 31 digital platforms (including 21 focal cases and 10 reference cases): (i) what is the value creation mechanism of these digital platforms? and (ii) how does the value creation mechanism affect the construction path of the system? The study identified three typical value creation mechanism configurations, i.e., innovation-driven, business integration, and data-driven, and then explained the system construction paths of these three configurations. We observed that the production and innovation leverages are the general construction drivers of the platform. However, the transaction leverage is only significant in a small number of platforms; that is, the role of network effects can be observed. These findings can deepen our understanding of platform theory in the digitalization of the real economy and explain why network effects cannot be the source of competitive advantage within the economic digitalization scenarios. We believe that it is of great significance to the digital transformation practice of the economy.

How and when does internal and external social media use for marketing impact B2B SME performance?

PurposeDespite its potential as a new source of competitive advantage, the performance implications of social media (SM) marketing (SMM) are not well understood. This study aims to investigate how and when SMM matters to firm performance, analysing the mediating role of product innovation (PI) and moderating the role of marketing innovation (MI) in business to business (B2B) small- and medium-sized enterprises (SMEs).Design/methodology/approachThis paper used structural equation modelling analysis in STATA, using the Australian bureau of statistics data set of 4,956 SMEs which operate in the B2B environment.FindingsThe results reveal differential moderating effects of MI on the direct SMM–performance relationship. MI positively moderates internal SMM and SM use for promotion and branding on firm performance. MI also negatively moderates SM use for customer communication on firm performance, underscoring SMM constituting a double-edged sword. The indirect effects of internal SM use and SM use for promotion and branding, and customer involvement in new product development on performance via PI are significant when MI is absent.Practical implicationsHence, B2B SMEs benefit from PI and existing SMM but do not benefit from dual PI and new MI.Originality/valueBy disaggregating SMM and explicating the mediating mechanism and moderating effects of MI, this study reveals how and under what conditions SMM matters to firm performance in B2B SMEs.

OYO: Growth, Descend, Resilience, Resurgence

The year 2021 had drawn to a close. OYO, the India-based hotel start-up that had witnessed a pandemic-induced descent in business, appeared to have ticked the right boxes and was on a resurgence path. Founded in 2013, OYO grew rapidly in its initial years and had operations in 800 cities in 80 countries in 2019, just prior to the onset of COVID-19. It was the ‘fastest growing’ hotel chain in the world. Burgeoning losses at the time compelled OYO to make a strategic shift from aggressive growth to an accretive growth strategy. In the mid of its course correction endeavour, OYO’s business plunged in wake of COVID-19. OYO exhibited resilience and strived for resurgence even though it remained in the red. What were the resource-based and position-based sources of competitive advantage that propelled OYO’s meteoric rise initially and enabled it to remain resolute in the COVID-19 crisis? Can OYO be termed as successful in light of the Balanced Scorecard framework? What strategic options are available to OYO to maintain its growth trajectory in the post-pandemic phase?

Strategic Alliances, Innovation Capability, Cost Reduction, Customer Loyalty and Competitive Advantage in B2B Alliances

Disruptive business environment such as the Covid-19 pandemic and the recent high volatility in commodity prices has changed the way businesses were conducted. The heavy equipment industry is one of many industries affected by such an environment, especially those who are related to the mining industry where the volatility of the commodity prices has a significant impact on their business performance. Alliances are commonly formed by heavy equipment distributors and their customers to create a mutual benefit to sustain their performance. Strategic alliances have attracted substantial attention from industry as well as academia as a way to stay competitive. They mostly focus on the partner-to-partner alliances in serving their customers. Consumer behaviour has changed due to changes in the environment that make firms' strategic focus more on human-centric business approaches. This study looks at the roles of the partner-to-customer alliances, innovation capability, and cost reduction toward customer loyalty and competitive advantage. Data was collected from 335 respondents from the firms that have entered into alliances. This study finds strategic alliances have the highest association with cost reduction, followed by their association with innovation capability. They enhance customer loyalty through innovation capability. Cost reduction is not a lever to develop customer loyalty in the partner-to-customer relationship. The study also confirms that operational efficiencies are necessarily the source of competitive advantage, but strategic alliances are.

Building legitimacy and distinctiveness on Nigerian-Canadian transnational ventures’ websites

ABSTRACT Achieving legitimacy in several markets is crucial for transnational ventures. Moreover, the literature on competitive strategy suggests that distinctiveness from competitors is a major source of competitive advantage for ventures. Nevertheless, our knowledge is sparse on how transnational ventures use claims to build legitimacy and distinctiveness through their website, which is increasingly the main point of contact with customers and other stakeholders. This research gap is especially relevant as an online presence plays a more important role than ever for ventures thriving to survive and grow. Thus, we analyzed (1) claims collected from 20 Nigerian-Canadian transnationals’ websites, classified by argument types, and (2) survey data from a 20-member review panel that assessed legitimacy and distinctiveness of those websites. Applying ranking, clustering and regression analysis, we found that not only legitimacy and distinctiveness are crucial for transnational ventures, but that they are also positively correlated. Hence, transnational ventures should design their websites to communicate their unique qualities, display customer reviews, provide comprehensive product information, and articulate their value proposition with the help of videos and images and pay attention to cybersecurity. Finally, we conclude with research propositions and managerial recommendations.

Factors of Dynamic Shifts in Product and Process Architectures in Large Refrigerated Trucks

In achieving sustainable growth, achieving originality, differentiation, and competitive advantage for its products is necessary for a company. Therefore, dynamic shifts in product and process architectures within the company are required in response to changes in the external environment. This study attempts a three-step analysis method to quantitatively measure the integrality of product and process architectures and evaluate the source of competitive advantage. Consequently, it was found that the factors of dynamic shifts in product and process architectures were technological changes and organizational capability changes, and the status of architecture changes could be evaluated.

The Perceived Effect of Intellectual Capital on the Performance of a Higher Education Institution: A Case Study

During an increasingly competitive environment, where digital technologies play a crucial role, organisations began to seek competitive advantages in their intangible resources to survive. Therefore, organisations’ intellectual capital (IC) is considered an essential source of competitive advantages. Higher Education Institutions (HEI) have also recognised the relevance of this phenomenon since these organisations use their IC to produce knowledge. In response to the call to analyse IC in practice, which includes emerging countries, this paper’s goal is twofold. On the one hand, it aims to assess the perceptions of a Brazilian HEI’s internal stakeholders regarding the relative importance of each IC dimension. On the other hand, it intends to understand how IC influences the performance of these organisations. Additionally, it intends to comprehend how internal stakeholders perceive and might measure performance. A case study was conducted at the Brazilian Federal Institute of Education, Science and Technology of Mato Grosso. The findings suggest that the three traditional IC dimensions are equally important to create competitive advantages, although there is no unanimity regarding which is the most important. They also show that IC influences, through several means, the performance of the HEI, although there was a focus on individual performance and also on negative issues, something which may, potentially, be caused by some lack of knowledge regarding the IC concept. Another finding is the lack of awareness regarding the importance of digital technologies in improving IC. Finally, an overlap between IC and performance indicators has been noticed. This study contributes to developing awareness about the relevance of intellectual capital in HEIs pertaining to emerging countries and its importance in improving their performance.

Exploring the Relationship between Data Analytics Capability and Competitive Advantage: The Mediating Roles of Supply Chain Resilience and Organization Flexibility

In today’s business environment, data analytics capability has gained popularity among organizations as a source of competitive advantage. Furthermore, due to the current business outsourcing, supply chain management is known to be an extremely challenging task. Most previous studies focused on the relationship between data analytics capability and competitive advantage regardless of the role of organizational characteristics, particularly supply chain resilience. This paper aimed to assess the impact of data analytics capability on competitive advantage in the textile industry concerning the mediating role of supply chain resilience and organizational flexibility. To this end, a new conceptual model was developed to investigate the relationships and partial least squares–structural equation modeling (PLS-SEM) was applied for analysis. The population of this study comprised 450 qualified persons and four well-known brands of sleep products. In addition, a pilot survey was conducted with 30 respondents before the questionnaire was used for the final survey. Based on the results, data analytics capability positively affected competitive advantage, supply chain resilience, and organizational flexibility. Additionally, supply chain resilience and organizational flexibility played mediating roles in the relationship between data analytics capability and competitive advantage. Finally, some management insights are presented that are of interest to top managers. However, the results of this study were limited to the area of the textile industry (sleeping goods manufacturers) in Iran in order to maintain the uniformity of the research constructs.