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The purpose of the study is to introduce the idea of arena-relevant marketing capabilities and examine their impact on firm performance. Arena-relevant marketing capabilities are capabilities particularly relevant for success in a specific competitive arena in which rivals from different industries try to satisfy customer needs with alternative products and services. The authors focus on the luxury arena and pose the following research questions: Which are the arena-relevant marketing capabilities in the luxury competitive arena (i.e. luxury-arena-relevant capabilities)? (2) What is the relative importance of luxury-arena-relevant vs general marketing capabilities for firm performance in the luxury competitive arena?

To identify luxury-arena-relevant marketing capabilities, the authors conduct a qualitative study among 21 top managers of luxury brands. A subsequent large-scale managerial survey empirically tests the effects of luxury-arena-relevant vs general marketing capabilities on firm performance.

The study identifies four luxury-arena-relevant marketing capabilities: perfection in product creation, exclusive pricing, luxury-congruent storytelling and luxury brand inspiration. It confirms empirically that they have a higher impact on firm performance within the luxury competitive arena than general marketing capabilities.

The study takes an innovative perspective on marketing capabilities by linking them with the concept of a competitive arena and underlines the academic relevance of the concept of arena-relevant marketing capabilities for explaining firm performance.

Matching Porter's (1980) three generic strategies appropriately in each of the four arenas of hypercompetition is proposed to offer temporary competitive advantages. The longer‐term sustainability of these competitive advantages is argued to depend on matching the firm's resources/capabilities with the provision of customer value and needs, as well as the presence of isolating mechanisms in the industry/market environment. Stringing together a series of such ephemeral advantages can enhance the firm's competitiveness in the long‐run.

The process of establishing a competitive advantage is at the heart of competitive marketing strategy. However, a competitive advantage cannot be established without a clear idea of what constitutes the relevant competitive arena. Theoretically, there are strong arguments for seeing both these processes as market‐driven, but in practice their implementation may present particular problems for financial services providers. The degree of complexity and intangibility which characterizes most financial services is generally thought to complicate the identification of a clear source of competitive advantage; it is also argued that these characteristics might affect the extent to which an organization may identify the appropriate competitive arena. Provides preliminary interview‐based evidence on the extent to which the market‐driven concepts of competitive advantage and competitive arena have been adopted in financial services and evaluates the extent to which they can be adopted, given the distinctive characteristics of many of the services concerned. Contends that the findings confirm the difficulties associated with the development of a clear competitive advantage and the relative unimportance of price; they also highlight the practical difficulties associated with defining the competitive arena as market‐driven. While these difficulties are common across the financial service providers interviewed, concludes that there is some evidence to suggest that market‐driven competitive arenas and sources of competitive advantage are more easily identifiable for specialist or niche players.

Discusses some of the general trends contributing to globalization from both a market and competitive perspective. Considers a framework for assessing competitive advantage and the features of global products. Concludes that success in global competition depends on working in the three dimensions of product, business system, and marketing; product focus along is unlikely to be enough to protect and strengthen a firm′s core.

A new era of metacompetition is arriving as firms develop the capability to use sophisticated information technology for strategic purposes. This means that the corporate strategist's role is evolving from raising managerial awareness for the need for such systems, to mastering their competitive dynamics. Just a few years ago, the bulk of the strategic information systems (SIS) stories focused on the pathbreaking cases of American Airlines's computerized reservations system, SABRE; American Hospital Supply's electronic order‐entry application, ASAP; and Merrill Lynch's Cash Management Account. In those days, corporate innovators still had to sell their organizations on the potential strategic uses of information technology.

The theoretical understanding of CSR is caught on the horns of the dilemma between the ethical and instrumental approaches. The strategic turn in CSR has brought the dilemma to a new head. The purpose of this paper is to develop a novel argumentative strategy to address the dilemma.

The paper weaves together the insights from the literatures on sociological institutionalism, organization theory, business ethics and institutional economics to elaborate the distinction between CSR communication and CSR action that is actually undertaken and visible to stakeholders. This distinction is at the core of the “hypocrisy avoidance” approach which puts the above dilemma in a new light.

According to the “hypocrisy avoidance” approach, the CSR communication constitutes a competitive arena where corporations are looking for reputational gains. Competitive pressures give rise to an inflationary dynamics of the CSR communication which consequently runs up against credibility problems. These problems are addressed by the real CSR policies which legitimate the corporate employment of the CSR communication as an instrument of competition.

The theoretical dilemma between the ethical and instrumental approaches manifests itself in the justification of skepticism toward CSR communication. This skepticism, which may be to the detriment of a corporation’s license to operate, may turn out to be a driving force of CSR action.

Despite the charges of corporate hypocrisy, CSR communication may play a role in the alleviation of business-society tensions. This role is however subject to two limitations. First, if CSR communication is used as instrument of competition, it is unlikely to translate into CSR action perfectly. Second, corporations would likely prioritize more visible CSR actions over less visible ones.

The novel implication of the “hypocrisy avoidance” approach is that CSR actions present credible commitments or “hostages” enabling the productive interaction between corporations and their stakeholders. This implication integrates some of the components of the ethical and instrumental approaches, while drawing inspiration from the institutional economics and institutional ethics literatures.

Although, the advanced manufacturing technologies (AMT) benefits and potentialities are already known, issues regarding the management process, from the planning to the implementation, represent the main barriers to the effective use of such technologies. The actual benefits of the AMT incorporation to the manufacturing system, classified as systemic, will only be obtained and recognized if the current design and organizational structure become compatible with the change being introduced. The purpose of this paper is to present the rationality for the organizational design development related to AMT adoption.

The developed theoretical synthesis integrates two refined and tested frameworks: the organizational design and the strategic selections of AMT. The company's manufacturing strategy, specifically the manufacturing vision, defines a set of statements, the required competences, which constitute the organizational design specifications. By approaching the AMT as resources related to the manufacturing vision competences, it could be assured the cohesion between the organizational design and the technology to be introduced. The theoretical development is illustrated by some empirical data, particularly in the cases of competences, capabilities and manufacturing vision statements formulation.

This paper is a theoretical construction that organizes and synthesizes the issues that are being studied in the main theme: “The adoption of the automated systems,” focusing the discussion on the manufacturing strategy and organizational design domains.

The generated framework is theoretical in essence and needs to be tested, although the theoretical exercise integrates tested frameworks.

The understanding of the relationships between the process of AMT adoption and the required changes in the organization contribute to the attainment of the benefits related to those technologies.

The main value of the present paper is the theoretical exercise to generate a set of recommendations of the organizational design‐revision process. The systemic design approached used will found future research to generate practical solutions for the design process, contributing to the AMT integration to the manufacturing system.

Quality management is dominated by rational paradigms for the measurement and management of quality, but these paradigms start to “break down”, when faced with the inherent complexity of managing quality in intensely competitive changing environments. In this article, the various theoretical strategy paradigms employed to manage quality are reviewed and the advantages and limitations of these paradigms are highlighted. A major implication of this review is that when faced with complexity, an ideological stance to any single strategy paradigm for the management of quality is ineffective. A case study is used to demonstrate the need for an integrative multi‐paradigm approach to the management of quality as complexity increases.

This paper proposes a semi-Beerian frame of reference for designing a business organization as a system with four subsystems and eight modes of thinking and interacting in both offering and resource markets. A systemic organizational competence includes an ability to connect a business unit with its markets. It possesses absorption, attenuation, and amplifier capacities. It guides and re-specifies all technology, embedded knowledge, capabilities, and other resources that together enable a business unit to act in the predefined, emerging, or innovative ways needed for goal attainment. Ex ante, various research traditions were regrouped into eight schools of thought on business management based on Porter's frameworks, resources, competences, knowledge, organizations, processes, business dynamism, and evolution. The findings reveal that various core, distinct, organizational, higher, and lower competences and capabilities play both primary and secondary roles, across the eight schools of thought, within a population of 84 competence-related business-management concepts published between years 1990 and 2002. Most authors do not deal with competitiveness boundary setting and modeling. A new frame of reference points to some viable avenues of producing highly applicable competence-based concepts as four semi-Beerian subsystems (boundaries, models, designs, and actions). Managing a business unit successfully involves eight kinds of explicit and tacit knowledge, situational information, reflections, decisions, models, designs, and interactions. It is proposed that a high degree of systemic advancement is one of the necessary attributes of any competence-based concept that will be proven to be highly applicable in managing a real dynamic business. Thus, competence-based scholars are encouraged to adopt the suggested assumptions, redesign their concepts as one or several semi-Beerian subsystems, and thus advance their school of thought markedly in the future.

This study empirically examines the impact of quality effort orientation on the financial performance of certified Portuguese firms. The results of factor analysis revealed four quality efforts orientation factors. The results of cluster analysis revealed the existence of three distinct groups of firms with regard to quality efforts orientation and performance. The analysis of variance results revealed that firms with a quality efforts orientation focusing on the customer tends to outperform firms utilising other quality efforts orientation with regard to net profit after taxes.