Search results

To create and sustain a resource-based competitive advantage, managers acquire and develop specialized resources as they grow their firms. The authors argue that an important part of committing to a resource-based strategy is a willingness to keep spending on specialized resources during periods when sales and profits are down. The authors seek to validate this conjecture by examining whether such resource-based commitment to a customer-centered strategy results in improved customer satisfaction. The authors use the stickiness of selling, general, and administrative (SG&A) expenses to capture this commitment empirically. The authors first document that future customer satisfaction is positively associated with SG&A cost stickiness, consistent with the premise that the retention of specialized SG&A resources during low demand periods helps firms to build and maintain relationships with customers over time. Next, the authors test whether expected future benefits of customer satisfaction are enhanced when SG&A cost stickiness is higher. The authors find that the positive relation between Tobin’s Q and customer satisfaction is positively moderated by SG&A cost stickiness. Finally, the authors test whether earnings persistence, a quality of earnings associated with sustained performance over time, is positively associated with the interaction between customer satisfaction and SG&A cost stickiness. The authors find that it is. Their evidence supporting these predictions is consistent with the conjecture that resource-based commitment reflected in cost stickiness is an important dimension of creating and sustaining a resource-based competitive advantage.

The competition is increasing every moment for the organizations and hence organizations are putting their best possible efforts to compete. This chapter is designed with the objective to explore various HR practices that can contribute in achieving the total quality management (TQM) in business. The basis for the study is taken from the aspects of competition that are cost reduction, differentiation and innovation. The extensive literature review from Scopus, J-gate, EBSCO and Springer databases are studied to integrate various aspects of TQM and HR practices that inculcate the competitive advantage for organizations. The framework may be developed for the reference to introduce and implement HR practices and manage TQM in the organization. The study may also help the professionals in designing the relevant HR practices for more value to the organizations. The linkage between various factors of the study may be helpful for the academicians and corporate organizations.

Micro, small, and medium enterprises (MSMEs) can play a significant role in achieving sustainable development goals (SDGs) as they have the ability to reduce unemployment. Digitalization helps MSMEs in a number of ways, including lowering transaction costs, quickening access to information, and bettering communication with extended supply chain members. This chapter aims to understand the level of digitalization in MSMEs in an emerging economy such as Bangladesh. MSMEs in Bangladesh account for 25% of the gross domestic product and employ 87% of civilians. This chapter builds on qualitative data from 60 MSMEs from various manufacturing and service sectors such as textile, retail, food delivery, IT companies, etc. The interviews were semi-structured and followed an interview protocol. The length of interviews varied between 40 and 50 minutes. Content analysis was used to analyze the data. Findings suggest that counterintuitively the level of digitization in MSMEs is not low in Bangladesh. Many micro and small enterprises use MS Excel to help them manage customer and product data. Medium Enterprises use Enterprise Resource Planning (ERP) software for planning enterprise-wide resources. Some medium enterprises also use powerful data analytics software such as Oracle, Power BI, Google Analytics, Python, and SPSS. Results also reveal barriers to digitization in MSMEs, which include a lack of employee awareness, training, and motivation of top management. This chapter maps the digitalization levels in MSMEs in Bangladesh and provides implications for SGDs. The chapter also presents policy recommendations for improving the digitalization level in emerging economies.

Why is it that, despite repeated claims that digital-content firms and internet-based businesses can internationalize everywhere almost instantly, many seem unable to profitably expand outside their home markets? Why have emerging market firms (EMNEs) caught up with established developed-country multinationals (DMNEs) so much faster than expected? In this chapter, the author argues that the clue to these two puzzles lies in the realization that, contrary to the dominant view in the international business (IB) literature that focuses only on the intangibles exploited by DMNEs and assumes that these firms are free to unilaterally decide on their mode of entry and operation, doing business in a foreign country is only possible if intangibles are bundled with complementary local resources, usually held by local firms. Taking into account these complementary local resources and their owners makes it clear that DMNEs are not always free to choose their entry mode but must enlist the cooperation of local resource owners. The need of digital-content and internet-based firms for local complementary resources also explains why they sometimes experience problems when expanding abroad. Lastly, control of complementary local resources provides EMNEs with a home advantage against DMNEs competing with them in their home market. The author shows how EMNEs can capitalize on this advantage to obtain the intangibles they lack and need. The fact that these advantages are available on efficient global markets, while complementary local resources are not, explains the surprising speed of EMNE catch-up.

This chapter is devoted to sustainable human resource management that leads to sustainable competitiveness. It features the ways human resources can be managed to carry out sustainable goals and the impact of sustainability on employees' attitudes and behaviours. The aim of this study is to explore the complex objectives of sustainability and human resource management and empirically investigate the dynamic relationship between human resources in science and technology and sustainable competitiveness in the case of 35 European countries. Our contribution emphasizes this interrelationship and its causality. For this research, we applied a vector auto-regression (VAR) model, and the Granger causality method to examine the relationship between human resources in science and technology and sustainable competitiveness. A panel data included 314 observations between 2012 and 2021. The panel VAR for analysing the impulse response function was enriched with the 5% and 95%, using Monte Carlo simulations. The research results revealed bidirectional causality in the European countries between human resources in science and technology and sustainable competitiveness. Human resources in science and technology trigger sustainable competitiveness and vice versa. As an element of originality, our study demonstrates that human resources in science and technology contribute to sustainable performance, and, on the other hand, a more competitive and sustainable environment contributes to the development of human resources in science and technology. Thus, the chapter outlines the role of human resources in science and technology with regard to sustainable human resource management (HRM), and how to navigate these objectives so that they can positively influence sustainable competitiveness.

As reaching UN Sustainable Development Goals 2030 has become the top agenda of the global companies, they have prioritized sustainability as a response to the grand challenges as well as a potential source of competitive advantage. This chapter poses the question: whether and how can firms achieve a sustainable competitive advantage via sustainability? I critically examine the sustainability-based view of sustainable competitive advantage by arguing that in the changing global landscape we will need to re-think the accepted ideas as regards sustainability goals, sustainable development and the sustainable competitive advantage as the individual firm’s achievement. The chapter contributes to the ongoing debate by discussing the potential of de-growth ideas and principles to solve some of the contradictions and suggesting the questions for future research.

This study contributes to the participative budgeting and budget misrepresentation literature by exploring: (1) whether managers’ judgments of fair behaviors are malleable and context-dependent and (2) if these judgments of fair behavior impact cost reporting misrepresentations. Two experiments investigate these questions. Experiment 1 (n = 42) tests whether the behavior that managers judge to be “fair” differs based on the decision context (i.e., initial economic position [IEP]). Experiment 2 (n = 130) investigates: (1) how managers’ deployment of fairness beliefs influences their reporting misrepresentations and (2) how decision aids that reduce task complexity impact managers’ deployment of fairness beliefs in their misreporting decisions. The study found that managers deploy fairness beliefs (i.e., honesty or equality) consistent with maximizing their context-relevant income. Hence, fairness beliefs constrain misrepresentations in predictable ways. In addition, we find more accounting information is not always beneficial. The presence of decision aids actually increases misrepresentations when managers are initially advantaged (i.e., start with more resources than others). The implications from these findings are relevant to the honesty and budgeting literature and provide novel findings of how managers’ preferences for fairness constrain managers from maximizing their income. The chapter demonstrates that contextual factors can influence the deployment of managers’ fairness beliefs which, in turn, differentially impact their reporting misrepresentation. Another contribution is that providing decision aids, which reduce task complexity, may not always benefit companies, since such aids may increase misrepresentation under certain conditions.

Family governance is a topic of substantial practical relevance that merits much more attention in family business research (Gersick & Feliu, 2014; Suess, 2014). The purpose of this book chapter is to use the framework of a fair process to gain a better understanding of how family governance practices can help an entrepreneurial family firm flourish. Central to the analysis is the case of a 100-year-old entrepreneurial family firm that will serve as a best practice. Interviews with key members of the family and the business were held, and secondary data were gathered and analyzed. The chapter starts with a theoretical outline of the family as strategic resource and the family governance as a mechanism to manage this strategic resource. The principles of fair process are introduced as an underlying framework for the well-functioning of family governance practices. This is followed by the introduction of the case and the discussion of the key findings. This chapter ends with some concluding remarks.

This study investigates the impact of corporate social responsibility (CSR) on corporate innovation. We selected the listed nonfinancial firms of South Asian Economies. The sample of the study comprised a total of 426 listed manufacturing firms of South Asian Countries for period spans 10 years from 2012 to 2021. In this study, descriptive statistics, multicollinearity diagnostic tests, correlation analysis and two-step dynamic panel system generalized method of moments (GMM) were applied to analyze the data. CSR measured with three proxies' social indicators, environmental indicators, and CSR composite index of social and environmental indicators. However, corporate innovation is captured with number of citations received in a year and number of patents filed in the year. Overall, findings of the study using all measures of CSR shows that CSR significantly and positively related with corporate innovation. Our results find support for CSR-innovation view with all measures of CSR. The findings suggest that the current study is helpful for managers, regulators, policymakers, and researchers. For managers, the study helps them to make the CSR and innovation decision. The policymakers should take appropriate innovative decision while considering factors such as CSR. This study can also be extended by considering this study for developed and emerging economies sample.