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Article
Publication date: 8 May 2007

Lee Li, Gongming Qian and Brian Gaber

In the past decade, Chinese enterprises have achieved superior cost advantages in the labor‐intensive industries. This paper explores the valuable resources that Chinese

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Abstract

Purpose

In the past decade, Chinese enterprises have achieved superior cost advantages in the labor‐intensive industries. This paper explores the valuable resources that Chinese enterprises use to develop such advantages and the effective mechanisms they employ to sustain the advantages.

Design/methodology/approach

The study used a multiple case design that allows a replication logic, in which a series of cases is treated as a series of experiments with each case serving to confirm or disconfirm the inferences that are drawn from the others. Twenty‐nine cases were collected. The data analysis consisted of three steps (1): within‐case analysis; (2) cross‐case analysis; and (3) proposition‐shaping analysis.

Findings

Evidence from this study indicates that the Chinese enterprises employ a complicated multi‐step framework to develop and sustain their cost advantages. The framework consists of various resources at different levels. Resources at the same level fit, support, and reinforce each other and they work together to achieve certain competitive advantages. The advantages are not constants. They are renewed frequently, and the advantages at previous step serve as the foundation for generating the next round of advantages. The contextual and historical causality between these resources and the advantages result in their sustainability.

Originality/value

The findings of this study make contributions to the existing strategy literature on two fronts. First, the sustainability of a competitive advantage results from the contextual and historical causality between various resources in combination. Second, in addition to physical, human, and organizational resources, valuable resources may also include intangibles, such as culture, norms, large home market size, tough domestic competition, and flexible organizational structures, etc.

Details

Journal of Business Strategy, vol. 28 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 7 September 2010

H. Kurt Christensen

In the author's experience, even veteran executives often make statements about competitive advantage that reflect either genuine misunderstanding or casual misuse of the term

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Abstract

Purpose

In the author's experience, even veteran executives often make statements about competitive advantage that reflect either genuine misunderstanding or casual misuse of the term. This paper aims to offer a clear explanation of what constitutes competitive advantage so as to facilitate identification, assessment and strategizing.

Design/methodology/approach

The paper proposes a definition of competitive advantage that differs from that proposed by many textbooks. It is based on the idea that competitive advantage can only be defined in terms of customer value.

Findings

A number of cases are examined in the light of the customer value approach to identifying competitive advantage.

Practical implications

Company executives learn to periodically engage in systematic information gathering regarding customer‐perceived competitive advantages.

Originality/value

Organizations that adopt this customer‐perceived approach to competitive advantage can make better assessments of where to expend their efforts and resources to outmaneuver their rivals and improve profitability.

Details

Strategy & Leadership, vol. 38 no. 5
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 1 October 2004

Nicholas G. Carr

When a valuable new technology emerges, it provides forward‐looking companies with opportunities for gaining a strong and durable edge over the competition. But as the technology…

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Abstract

When a valuable new technology emerges, it provides forward‐looking companies with opportunities for gaining a strong and durable edge over the competition. But as the technology matures and standardizes, it loses its power to provide competitive advantage. What it doesn’t lose is its power to destroy advantage. The rail system, for example, neutralized many of the traditional locational advantages held by companies situated near ports, mine heads, and population centers. With information technology, this neutralizing effect promises to be particularly strong – and thus poses particularly difficult challenges for business executives. Because IT is so flexible in its application and so deeply entwined with business processes, it can corrode advantages across many aspects of a company’s business. Any traditional advantage in prosecuting a particular activity or process, from setting type to designing components to providing customer service, will tend to dissipate as that activity or process is automated. The fact that competitive advantage has become more difficult to sustain doesn’t make it less important, as some have argued; it makes it more important. As business processes and systems become more homogeneous, only the strategically astute companies will be able to rise above the competitive free‐for‐all. Today’s smart managers will seek to combine sustainable advantages (those built on distinctive and defensible positionings) with leverageable advantages (transitory advantages that provide stepping stones to future advantages). In the information age, competitive advantage needs to be viewed as both an end and a means.

Details

Journal of Business Strategy, vol. 25 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 June 2023

José Piñera-Salmerón, Raquel Sanz-Valle and Daniel Jiménez-Jiménez

This paper aims to contribute to the understanding of the relationship between innovation and export performance by examining the effect of different types of innovation on export…

Abstract

Purpose

This paper aims to contribute to the understanding of the relationship between innovation and export performance by examining the effect of different types of innovation on export performance and testing the assumption underlying most studies in the field that competitive advantage mediates this relationship.

Design/methodology/approach

From the literature review, this paper proposes a research model that is estimated using a sample of 200 Spanish exporting manufacturing companies. Data for this study were collected with an ad hoc questionnaire, and the partial least squares structural equation modeling technique was chosen to analyze the data.

Findings

The results show that there is a positive relationship between product and business process innovation and export performance and that competitive advantage mediates this relationship, but only when it is based on costs, not on differentiation.

Originality/value

This paper provides evidence that product and business process innovation are positively related to export performance and that competitive advantage mediates these relationships, but only when the advantage is low cost. Unexpectedly, this paper finds that differentiation is neither related to export performance nor explains the relationship between innovation and export performance.

Details

Multinational Business Review, vol. 31 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 20 April 2023

Charles Baah, Yaw Agyabeng-Mensah, Ebenezer Afum and Johana Andrea Lascano Armas

Environmental degradation in emerging economies has induced stakeholder pressures on diverse firms to ensure sustainable business performance. Consequently, firms are adopting…

Abstract

Purpose

Environmental degradation in emerging economies has induced stakeholder pressures on diverse firms to ensure sustainable business performance. Consequently, firms are adopting environmentally ethical cultures and reinforcing green creativity to satisfy stakeholders' environmental needs while attaining green competitive advantage, sustainable production and higher financial performance. The purpose of this study is to investigate whether corporate environmental ethics and green creativity serve as antecedents to higher competitiveness, sustainable production and financial performance, and also examine if green competitive advantage and sustainable production mediate the relationships between corporate environmental ethics, green creativity and financial performance in the context of an emerging economy.

Design/methodology/approach

This study using a survey approach examined data from 290 manufacturing small and medium-sized enterprises. Data were analyzed and interpreted using SmartPLS 3.0 software, a variance-based structural equation modelling technique. This modelling technique was adopted due to its suitability for predictive research models.

Findings

The findings show that corporate environmental ethics and green creativity are critical antecedents to green competitive advantage, sustainable production and financial performance. The results connote that while corporate environmental ethics and green creativity directly and robustly influence green competitive advantage, sustainable production and financial performance, their effect on financial performance is strengthened via the indirect effects of green competitive advantage and sustainable production. Contrasting past findings, corporate environmental ethics negatively related to financial performance in this study context. The findings indicate that the integration of environmental ethics and green creativity can be a unique strategy for mitigating environmental negative risks while improving green competitive advantage, sustainable production and financial performance.

Originality/value

The study is among the few that draws insights from organizational ethics and the natural resource-based view (NRBV) to examine the interactions between corporate environmental ethics, green creativity, green competitive advantage, sustainable production and financial performance. Drawing insights from the findings, the study provides suggestions for managers, academicians, policymakers and governments as well as highlights implications and directions for future research.

Details

Benchmarking: An International Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 25 July 2023

It Nguyen Van, Thanh Tiep Le and Anna Kotaskova

This study aims to show how market orientation (MO), brand (BR) and business strategy (cost leadership strategy and differentiation strategy), which play mediating and moderating…

Abstract

Purpose

This study aims to show how market orientation (MO), brand (BR) and business strategy (cost leadership strategy and differentiation strategy), which play mediating and moderating roles, respectively, can increase competitive advantage (CA). With a focus on brand, market orientation, cost leadership strategy (CS) and differentiation strategy (DS), as well as an analysis of variance control on varying business sizes per business seniority, the current study made a theoretical contribution.

Design/methodology/approach

An empirical study was created using a quantitative methodological technique. The surveyed data were collected from 379 managers or owners who participated in a face-to-face survey at different food processing companies in Vietnam. To test the hypotheses, the gathered information was examined utilizing multigroup analysis and partial least squares structural equation modeling.

Findings

The brand was found to have the greatest positive impact on competitive advantage, followed by a business strategy that positively influenced competitive advantage, and, finally, business strategies that significantly moderated the third strong positive impact between market orientation and competitive advantage. Market orientation has the fourth strong positive impact on competitive advantage, whereas brand has the lowest positive impact on market orientation.

Originality/value

This is the first investigation, according to the authors’ knowledge, into the role of market orientation as a mediator in the relationship between brand and competitive advantage in addition to the regulatory role of business strategy at two strategic levels: cost leadership and strategic focus as well as the difference between competitive advantage and market orientation in the Vietnamese food sector.

Details

British Food Journal, vol. 125 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 16 February 2023

Hazem Aldabbas and Niël Oberholzer

This study provides theoretical and empirical insights into how firms can enhance their performance strategically and financially by integrating learning and transformational…

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Abstract

Purpose

This study provides theoretical and empirical insights into how firms can enhance their performance strategically and financially by integrating learning and transformational capabilities into research and development (R&D) activities based on the dynamic capabilities approach. To achieve this, the authors propose that transformational capabilities in R&D mediate the relationship between learning capabilities in R&D and competitive advantage.

Design/methodology/approach

Using a purposive sampling technique and standardized questionnaires, data were collected from 118 R&D and senior managers. To analyze the data, multiple regression analysis, along with SPSS PROCESS macro (Model 4), was used.

Findings

The results support the theoretical assumption that there are direct and indirect positive and significant effects between learning capabilities in R&D and competitive advantage as mediated by transformational R&D capabilities.

Originality/value

This study explores R&D from a dynamic capabilities perspective and suggests that learning capabilities should come first to enhance businesses’ competitive advantage. Furthermore, transformational R&D capabilities can explain the relationship between learning capabilities in R&D and competitive advantage. The authors recommend that researchers should investigate the contributions of R&D to promote competitive advantage.

Details

Arab Gulf Journal of Scientific Research, vol. 42 no. 1
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 29 November 2022

Christiana Adeola Olawunmi and Andrew Paul Clarke

This study aims to explore marketing strategies that UK fish farming businesses can use to gain a competitive advantage. The marketing strategies examined include product branding…

Abstract

Purpose

This study aims to explore marketing strategies that UK fish farming businesses can use to gain a competitive advantage. The marketing strategies examined include product branding and core competencies, sales promotion, market positioning and segmentation.

Design/methodology/approach

A survey through an online questionnaire was mailed to five randomly selected trade associations of UK fish farming businesses and distributed to their registered members, of which 200 responded. Both male and female genders with different age groups and levels of experience in the UK fish farming business participated. In addition, ten articles were sampled for a systematic review.

Findings

Results show that UK fish farming businesses could increase sales by using ecolabels in product branding to attract premium prices, build consumer confidence and using high-quality packages for fish products will keep fish fresh for a longer period.

Research limitations/implications

The scope of this research is limited to the UK. The findings cannot be generalised and used for other jurisdictions because of variable economic and market conditions.

Originality/value

A significant recommendation from this case study is that fish farming businesses need to be creative and innovative in ways such as leveraging branding, sales promotions and core competencies to win the trust and confidence of consumers. Most importantly, each fish farming business should know the specific marketing strategy that works for them; this case study shows that not all branding and sales promotion techniques enhance competitiveness. The scope of this research is limited to the UK. The findings cannot be generalised and used for other jurisdictions because of variable economic and market conditions.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 6
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 20 October 2022

Abhishek Mishra and Thomas Anning-Dorson

This work proposes that a multi-national service company (MNSC) needs to develop dynamic customer-oriented relational capabilities (DCRC), constituting dynamic service…

Abstract

Purpose

This work proposes that a multi-national service company (MNSC) needs to develop dynamic customer-oriented relational capabilities (DCRC), constituting dynamic service customization (DySC), dynamic customer integration (DyCI) and dynamic timeliness of service delivery (DyTSD) capabilities, to gain competitive advantage and performance in its internationalization efforts.

Design/methodology/approach

For empirical validation of the framework, developed through qualitative interviews, this study includes multi-cross-sectional data from twelve countries, four each in the category of underdeveloped (Africa), developing (Asia) and developed economies (Europe). Covariance-based structural equation modelling is used to test the hypotheses.

Findings

The study supports that DySC, DyCI and DyTSD capabilities have a significant positive influence on firm competitive advantage and performance across economies. The levels of competition intensity and regulatory restrictions, an outcome of the type of economy, have negative intervening effects, with varying intensities across economies.

Practical implications

This work guides the internationalization service managers to leverage DCRC across national borders keeping the state of the economy into consideration.

Originality/value

This work proposes a model of DCRC, based on the Intangibility, Heterogeneity, Inseparability and Perishability (IHIP) service framework, that enables firms to derive competitive advantage and performance across economies with varying environmental conditions.

Open Access
Article
Publication date: 16 December 2022

Ismail Juma Ismail

The combination of strategic orientation and digitalization for sustainable competitive advantage among small businesses is still not given much…

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Abstract

Purpose

The combination of strategic orientation and digitalization for sustainable competitive advantage among small businesses is still not given much attention in the literature. Therefore, this study aims to understand the influence of strategic orientation on sustainable competitive advantage while mediating the relationship with digitalization.

Design/methodology/approach

This study used a cross-sectional design. This design helped collect data from 234 small businesses in Arusha city, Tanzania. Since the study used latent variables, structural equation modeling (SEM) was used to analyze relationships and conduct confirmatory factor analysis. Through bootstrapping confidence intervals, Hayes's Process was also used to test how digitalization mediates the relationship between strategic orientations and sustainable competitive advantage.

Findings

The strategic orientation attributes that include market orientation, entrepreneurial orientation and learning orientation were positively and significantly related to digitalization. Furthermore, the results on digitalization and sustainable competitive advantage show a significant positive relationship. Finally, digitalization was analyzed to mediate the relationship between strategic orientation, market orientation, entrepreneurial orientation, learning orientation and sustainable competitive advantage. Hence, all hypotheses were supported.

Research limitations/implications

This study adopted a cross-sectional design that helped to capture the quantitative information. In addition, the current study is limited to Tanzania's small businesses; thus, the findings cannot assure generalization of the conclusion to other countries because of the differences in social, cultural and technology across countries.

Originality/value

This study integrates the concepts of strategic orientation from the strategic management discipline and digitalization from a technology perspective. As a result, the study adds new knowledge about combining two aspects and determining whether they add value in terms of providing a sustainable competitive advantage. This knowledge comes from digitalization, which acts as a mediator between strategic orientation dimensions and a sustainable competitive advantage.

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