Sustainable Competitive Strategies Research Articles

Dynamic Capabilities, Resources, and Social Capital in Creating Sustainable Competitive Strategies in Indonesian MSME

The purpose of this study is to better understand how Indonesian Micro, Small, and Medium-Sized Enterprises (MSMEs) shape sustainable competitive strategies through the interaction of dynamic capabilities, resources, and social capital. The study employed a quantitative methodology that utilized Structural Equation Modeling with Partial Least Squares (SEM-PLS 3) to extract data from a representative sample of 232 MSMEs located in different industries and geographies. The results show that social capital, resources, dynamic capacities, and sustainable competitive strategies are all positively correlated. The study also reveals the mediating functions of social capital and resources in converting dynamic capabilities into long-term competitive advantages. With a robust R-squared value and a Goodness of Fit (GoF) rating of 0.68, the model demonstrates a substantial fit, indicating its adequacy in explaining the intricacies of the MSME environment in Indonesia. These revelations have important ramifications for developing theories as well as useful tactics to raise MSMEs' competitiveness in Indonesia.

МОДЕЛІ УПРАВЛІННЯ ДОДАНОЮ ЦІННІСТЮ У НІШЕВОМУ АГРОБІЗНЕСІ

The article examines the methodological approaches and models of added value management as a consumer’s value based on the ecosystem and marketing approach in the segment of micro and small agricultural business, which operates in the conditions of full-scale military invasion in Ukraine. The sociological study conducted in 2022-2023 among 100 managers and founders of domestic micro and small agricultural enterprises shows and explains value-added management models in the segment of niche agro-production business. Creating value for consumer’s approach is a methodological basis for sustainable competitive strategies development, which allows micro and small businesses to adapt to the external environment rapid changes and to be consistent in the long term period perspective both in conditions of the full-scale military invasions and in the post-war period. The agri-food market structural changes caused by the pandemic and full-scale military actions led to the domestic micro and small agricultural business strategy transformation. In conditions of full uncertainty and the threats of physical destruction, micro and small agro-enterprises that retained their production capacity showed adaptability to rapid market changes in comparison with large-scale agribusiness. Leaders of micro and small business actively studied and implemented innovative approaches to the management of material, financial and information flows, which directly affected their ability to produce added value. Running an agri-food business in Ukraine in modern realities requires the use of sustainable business practices that will ensure sustainability both in the short-term and in the long-term. The ecosystem approach to the added value management, as a value for the consumer, involves a comprehensive approach to the of available resources assessment, external threats and challenges, and development prospects. A marketing approach to the added value creation and treatment it as a value for the consumer allows to develop a differentiated strategy. Such approach allows to obtain more sustainable competitive advantages in comparison with the economic approach of added value creation and management. The strategy of increasing value of primary agricultural products by increasing the market value and product attractiveness through marketing tools allows to differentiate the product line and receive an additional premium.

A Study to Develop Sustainable Competitive Strategy for a Healthcare Organization in India

A Study to Develop Sustainable Competitive Strategy for a Healthcare Organization in India

Modeling the influence of industry forces on intention to invest in renewable energy resources with the moderating effect of sustainable competitive strategy

In response to Agenda 2030 and the Paris Climate Accord, the Ghana Energy Transition has been inaugurated to ensure a speedy shift from fossil fuel sources to clean energy (Solar, Wind, Thermal, Ocean Energy, Hydro Energy etc.) to avoid the worst of climate change. To facilitate the transition, we have developed an integrated model to explain the relationship between industry forces and investment intentions in renewable energy resources, and the moderating role of sustainable competitive strategy on the relationship between industry forces and investment intention. Cross-sectional survey data from Ghanaian private firms have been collected between January and February, 2022, and used for the study. To test our hypotheses, structural equation modelling approach and SMART-PLS 3.3.1 have been used. The results have shown that industry forces have significant effects on investment intention. The results have further shown that sustainable competitive strategy has significant relationships with investment intention. Moreover, the sustainable competitive strategy dimension of entrepreneurial competency has moderated the relationship between industry forces and investment intention. These results offer theoretical, policy and practical implications and guidance on strategies needed to attract private investment in renewable energy resources in Ghana and beyond.

Understanding the renewal of value creation activities in an environment of technological turbulences

Purpose- In order to survive, enterprises need to adapt their existing capacities and capabilities to changes in the environment, organize to meet the demands of their stakeholders, and develop sustainable competitive strategies. Because of this necessity, enterprises are trying to make innovations in their value creation constructs. The main purpose of this study is to try to understand the renewal of value creation activities, which has a significant impact on business performance, in an environment of technological turbulences that lead to threats or opportunities for enterprises. Methodology-This study examines value creation activities within the framework of the concepts of collective commitment between employees and organizational performance in the organization, through a model developed based on the findings in the relevant literature. The study was carried out in Turkey, which is trying to update its existing products and services according to the demands of its customers by using advanced technologies instead of improving technology. The data for the study were collected from the organizations that are involved in research and development activities and benefit from government incentives for this by using a questionnaire created originally. Findings- According to the analysis, regardless of the lines of business, both collective commitment positively affects the renewal of value creation activities of the enterprise and the renewal of value creation activities positively affects the performance of enterprises. Although technological turbulences in the market strengthen the relationship between collective commitment and renewal of value creation activities in labor-intensive lines of business, this effect was not observed in technology-intensive lines of business. Conclusion- As a result, it is understood that the perception of environmental factors such as technological turbulences as threats or opportunities and the renewal of value creation activities in enterprises are closely related. The findings of this research conducted in Turkey, which is influenced by both eastern and western cultures, will be important both for businesses operating in Turkey and in similar countries trying to get out of the developing country position. Keywords: Value creation activities, collective commitment, technology-intensive business lines, labor-intensive business lines, emerging countries JEL Codes: L20, L21, L25

Managerial coaching and sales performance: the influence of salesforce approaches and organisational demands

PurposeThis study intends to understand if managerial coaching, a sustainable competitive strategy, has an impact on sales performance, through customer and results orientation of the salesforce. It also aims to investigate whether pressure for results, one of the predominant demands in organizations today, and the centralisation of decisions, a traditional management demand still present in several organizations, undermine the effect of coaching on performance.Design/methodology/approachThe 167 responses collected, through the distribution of questionnaires among workers in the commercial area, were analysed through a structural equation model using the partial least square (PLS) technique.FindingsThe results of this study confirm that managerial coaching has a positive impact on sales force performance through customer and results orientation, with customer orientation having a greater impact on performance. It was also found that centralised decision-making and pressure for results do not undermine the relationship between managerial coaching and performance, and they even reinforce the positive impact of results orientation on performance.Practical implicationsManagerial coaching practices can impact sales, especially when associated with customer orientation, freeing employees from the pressure for results and the centralisation demands. This scenario favours a more sustainable and emancipatory sales force management.Originality/valueThis study is the first to integrate organizational demands, namely pressure for results and centralisation, to better understand the effect of managerial coaching on sales performance, through customer and results orientation, thereby extending previous research on this topic.

The Become a Profit Maker and Profit Keeper Against the Moral Responsibilities of Private University Lecturers

Purpose – The purpose of this paper is to design implementation for two employee categories (A and B) model profit as lecturer’s moral responsibility as part as an employee of the private university.
 Design / methodology/approach - This paper uses a case study approach to analyze the implementation of profit maximization in private industries such as financial services, to be applied in the private higher education industry to face open competition, especially corporate universities.
 Findings - The results of the research find that there is a positive and significant relationship between profit maker and profit keeper are in line with the moral responsibility of private lecturers.
 Limitations/implications - Research is very limited on owner respondents, and there is no measurement transparency model. It is a challenging implication for further research.
 Practical Implications – This research will be useful for applied research. The investment must be profitable. Student consumers must be looked after. Industries are transforming rapidly due to competition, market share, and avoiding failure. The model strategy should be run as a profit-oriented industry.
 Originality / value – The research contributes greatly to professional models for private owners and lecturers, also provides a collaboration formula for sustainable competitive strategies from the start of investment to how it becomes more profitable.

The impact of high-tech companies’ performance and growth on capital structure

PurposeThe purpose of this paper is to investigate the joint influence of two factors (companies’ performance and growth) on the company’s capital structure and to determine the conditions for financially sustainable competitive strategies in the coordinates profitability and growth.Design/methodology/approachThe study sample includes 1,996 companies from 6 high-tech industries in Russia (panel data: 7,984 observations). The authors use regression models with random effects and carry out a three-dimensional visualization of the resulting dependencies.FindingsThe study found that profitability improves the capital structure (reduces the share of borrowed capital) and, on the contrary, the growth of companies (assets growth or sales growth) increases the leverage ratio. In the case of assets growth, the combined influence of two factors reduces the negative effect of assets growth. The results have shown that the outstripping growth of most high-tech companies requires an increase in debt capital and deterioration in the capital structure and financial stability.Practical implicationsIn general, based on the results of this study, the authors have identified groups of fast-growing companies that need financial support, and have defined the main areas of impact (reducing the loan burden and increasing profitability) that will allow these companies to maintain high growth rates and demonstrate advanced development.Originality/valueThe relationships (which the authors identified between the control variables, the studied variables and leverage) were obtained for the first time for a sample of companies in high-tech industries and services in bigger transition country (Russia).

Methodology for assessment of competitive potential of functional purpose confectionery in the context of global market trends

The confectionery industry in the world belongs to dynamically developing sectors of the economy and fast-growing segments of the consumer market, due to the accelerated transformation of demand under influence of healthy nutrition and safety trends, as well as ability of the industry to adapt and develop considering consumer preferences through innovations and development of sustainable competitive strategies. New products with original consumer properties of functional purpose with a low sugar content and healthy fats are constantly appearing in the confectionery market. In this regard, assessment of products competitiveness should take into account the new qualities and availability to the consumer, which will allow commodity producers to form an efficient competitive strategy based on the analysis, plan innovative initiatives, and achieve success in promoting in the domestic and foreign markets. The paper presents the results of studying the trends in the world confectionery market, as well as marketing analysis of quality price parameters of products of domestic and foreign producers in the domestic market. An efficient methodology for assessing competitiveness of functional purpose confectionery products in terms of chocolate has been substantiated, and its testing results made it possible to identify the competitive advantages of domestic products in the field of organoleptic properties, nutritional value, functional efficiency and information content of packaging for the consumer. Use of the development in practice will make it possible to successfully position Belarusian chocolate as an original product of high quality, increase the added value of products for export, as well as form a stable consumer demand for healthy foods in the domestic market. Acknowledgments. The research was carried out as part of the Branch Scientific and Technical Program “Child Nutrition. Quality and safety” for 2016-2020, as well as the state program of scientific research “Quality and Efficiency of Agroindustrial Production” for 2016-2020, subprogram 1 “AIC Economy”.

Carbon Footprint as a Lever for Sustained Competitive Strategy in Developing a Smart Oenology: Evidence from an Exploratory Study in Italy

In the wine sector, the choice of a sustainable strategy based on smart marketing has gained more relevance due to the growing importance of sustainability. The literature illustrates a multiplicity of perspectives, wherever firms are committed to improving sustainability and market performance. This exploratory paper aims to make sense of the extant literature by analysing 10 case studies in Italy, focusing on sustainable competitive resources and strategies, considering the role of CF (Carbon Footprint) as a crucial factor. The research has considered a complementary theoretical framework based on both Resource-Based Theory and Competitive Advantage Theory. Data were analysed by descriptive statistical techniques. The results show a bundle of unique resources and strategies in pursuing firm performance, wherever CF may lead to significant sustained competitive advantages in firms’ value capture (ex. image and reputation and customers’ relationships loyalty, entrance into new foreign markets). Findings highlight that perceiving the costs and benefits of investments in lowering CF may guide to a more accurate understanding of the value-creating from the different type of eco-innovation for building tailor-made communicational and marketing strategies.

Optimisation model for industrial complex competitiveness: a path to sustainable innovation process

Business entities of all forms and origin face the necessity to foster new management approaches in order to promote its excellence. Sustainability is a key issue for organisations nowadays as they increasingly acknowledge that their practices have social and/or environmental consequences. Multi-stakeholder systems such as industrial complexes/clusters seek to raise competitiveness by integrating new innovative business models and appropriate responsibility in various fields of operations. These managerial technologies require a novel outlook at the optimisation model of the numerous competitive forces and its evaluation. In light of this, it is imperative that new methodologies and frameworks to facilitate the understanding of sustainability concepts in the business environment are to be developed as innovation approach. The framework suggested in the paper helps to outline guidelines on evaluating the nature and process of innovative and sustainable competitive strategy considering many indicators influencing industrial complexes and its environment.

Strategic Decision Making for the Triple Bottom Line

AbstractCorporate social responsibility (CSR) has become a mandate for strategic managers and is often an important element of a differentiation strategy, but there is little research on how managers can make socially responsible decisions within the context of competitive strategy. In this study we explain how data envelopment analysis (DEA) results can be used to determine the trade‐offs inherent in managing the triple bottom line of profits, people and the planet. Once the trade‐offs are well understood, managers can implement sustainable competitive strategies that incorporate socially responsible decisions. Using public data from the electric power generation industry, we demonstrate how DEA can be utilized to determine the trade‐offs between efficiency, costs and pollution reduction, allowing managers to make and champion socially responsible decisions. We discuss the general applicability of our method for making strategic decisions incorporating the triple bottom line. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

A Review of Leveraging Private Cloud Computing in Financial Service Institutions: Value Propositions and Current Performances

This paper identifies main value propositions of leveraging private cloud computing and reviews current performance of implementing cloud computing technology in financial industry. The following aspects have been reviewed by this paper, namely (1) discerning cloud computing-enabled innovations, (2) identifying three value propositions of using cloud computing, (3) reviewing current performance of cloud computing in financial service institutions, and (4) sustainable competitive strategy of using cloud computing. The main contributions of this paper are twofold. First, this paper presents the implementations of cloud computing in financial industry and summarizes key enablers of leveraging cloud computing. Second, a strategy reference model was proposed for financial organizations to form sustainable competitive strategies via cloud-based solutions. The proposed reference model takes account into both shareholder value and stakeholder value. The adaptability of the model is in planning of being demonstrated in practice at the time of writing.

Sales Force Compensation Mechanisms: A Strategy for Sustainable Competitiveness in the Banking Industry

Compensating one's sales force presents challenges, because rewards must be extremely competitive in nature and should provide adequate incentives to motivate employees to do their best. This paper explores ways of developing salesforce compensation mechanisms for sustainable competitiveness in the financial markets. Data were drawn from one hundred and twenty sales managers and three hundred and eighty salesperson making a total of five hundred respondents, selected from money deposit banks in Nigeria. The results of the study shows a strong influence of compensation mechanisms on salesforce performance and also, that amongst the measures of compensation mechanisms, that salary plus commission and bonus, impacts significantly on sales performance. Based on the findings, the study concludes that salesforce compensation mechanisms enhances sales, build salesperson long enduring relationships with employers and provide adequate and sustainable competitiveness. We recommend that money deposit banks in Nigeria financial market should develop good salesforce compensation mechanisms that will enhance sustainable competitive strategy in the market place. I. Introduction The link between Salesforce Compensation and Competitiveness is undoubtedly increasing in research, and debate among scholars and practitioners; especially with the unprecedented roles, benefits and expertise salesforce accrues, and the increasing salesforce switch from firm to firm. Though salesforce provide the firm with gains of selling, closing sales, interactive contact and ambassador of the company, also create avenue for building long term customer relationship, and of recent, a crusader of moving/bringing customers to other firm as the salesforce switch; but their compensation and motivation is treated with high degree of levity. Firms have now seen salesforce compensation as a new strategic window for competitive advantage in the fast response organization (Belmount and Dickson, 2009). Many salespeople now move horizontally or vertically in the industry for quest of better and higher compensation. Traditionally, compensation methods has been straight salary and, or straight commission which has limited the potential to drive competitiveness. However with the increasing high rate of switch, intense competition, retention challenges and the need to build competitive edge, firms have challenges of devising out new ways and the right mix of compensation methods: salary, commission, drawing account, bonuses, profit sharing, indirect monetary benefits, and expenses of motivating and building salesforce compensation so as to drive competitiveness. Therefore, this paper explores optimal ways of salesforce compensation method in the fast response organization.

Dynamics of Industry Consolidation and Sustainable Competitive Strategy: Is Birthright Irrevocable?

We investigate how a firm's birthright can determine its competitive advantage and its ability to survive an industry shakeout, especially when caused by non-disruptive technological innovations. Birthright is defined as the firm's superior endowment of resources, both tangible and intangible, vis-a-vis competitors', stemming either from its earlier entry into the market or from prior experience in a related market. Using a system dynamics simulation case analysis, we show that, consistent with the literature, birthright was indeed the determining force during the consolidation of the Korean mobile telecom industry case, and that firm's reputation or brand was the significant factor. We then consider a deeper question, whether it is possible for newcomers without strong birthrights to survive such industry turmoil. We use the simulation model to conduct a ‘what-if’ analysis on one of the ‘victim’ firms which failed in the Korean telecoms shakeout, and conclude that targeted investment in reputation building would have enabled it to survive.

Use of resource‐based view in industrial cluster strategic analysis

The resource‐based view of the firm has recently emerged as a new paradigm in strategic analysis. According to this view, firms are heterogeneous collections of resources that lead them to distinct market performance. This paper uses this approach not to analyse an individual firm but a cluster of firms, whose competitiveness depends not only on their individual resources and capabilities but also on those shared by the cluster as a whole. The analysis was developed for a wine cluster located in southern Brazil. The main objective was the identification of the resources and capabilities shared by the cluster in its effort to formulate sustainable competitive strategies. The research method employed combined the techniques of cognitive mapping analysis with the theoretical basis of the resource‐based view approach. The results of the study produced a significant improvement in managers’ and strategists’ perceptions about the competitive potential of the cluster.

Intellectual property transfer from universities to business: requisite for sustained competitive advantage?

Business is experiencing an ongoing fundamental shift in the competitive environment, which highlights the need for knowledge development and the interdependence between users and producers, including universities, government, and society. This interdependence is specifically accentuated by the transfer of intellectual property from universities to corporations that are intent on developing sustainable competitive strategies. This paper presents a conceptual framework and research questions and the results of an exploratory study which focused upon the interaction between pivotal universities and business in a society-government context. Among other findings, the paper concludes that the economic and contractual imperatives of business may not conform to the traditional research, instructional, and service roles of universities. The implications of the study findings for business and university interactions are discussed.

The Role of Corporations in Achieving Ecological Sustainability

Ecological problems rooted in organizational activities have increased significantly, yet the role corporations play in achieving ecological sustainability is poorly understood. This article examines the implications of ecologically sustainable development for corporations. It articulates corporate ecological sustainability through the concepts of (a) total quality environmental management, (b) ecologically sustainable competitive strategies, (c) technology transfer through technology-for nature-swaps, and (d) reducing the impact of populations on ecosystems. It examines the implications that these concepts have for organizational research.

Strategic groupings as competitive benchmarks for formulating future competitive strategy: A modelling approach

AbstractPrevious studies on strategic groups have examined issues such as the identification of strategic groups, the relationship between strategic groups structure and industry performance, and the movement of strategic groups over time. In contrast to previous studies, this paper uses the analytical concepts of game theory to explore the question of what strategic groups will exist in the future. These benchmark (future) strategic groups represent long‐run strategic positions available within an industry and thus reference points for firms in developing sustainable competitive strategies. The benchmark strategic groups are discussed and comments are offered to illustrate how firms can use the benchmark information to redirect their strategic positions in order to survive and remain competitive in the long run.