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Article
Publication date: 31 January 2018

Henry F.L. Chung and Tsuang Kuo

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export…

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1292

Abstract

Purpose

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial and strategic performance framework. The purposes of this study are to explore whether a common standardized or individual customized conceptualization consisting of MTs, international competitive strategy and performance can be used to achieve export financial and strategic performance; to offer contingent factors for the current international competitive strategy-export performance framework; and to generalize the roles of MTs in the developed vis-à-vis developing region.

Design/methodology/approach

This study uses the experience of 114 exporting firms operating in the European Union region to test its theoretical frameworks. MTs include both business and political ties.

Findings

Business and political ties have completely different moderation effects on the relation between international differentiation/low-cost strategy and export financial/strategic performance. Business ties have a positive influence on the international differentiation strategy-export strategic performance and international low-cost strategy-export financial performance dyads, but a negative effect in the international low-cost strategy-export strategic performance framework. In contrast, political ties are revealed to have a negative effect on the international differentiation/low-cost strategy-export financial performance framework.

Originality/value

This research advances extant international competitive strategy-export performance literature by revealing the bright and dark sides of business ties and the down side of political ties in the framework. Performance should be investigated in terms of financial and strategic performance. The moderation effect of business ties is more complex than that reported in the developing region; thus, a cross-regional generalization on these ties’ effects is more difficult to establish. In contrast, the dark side effect of political ties is consistent across developed and developing regions; a cross-regional generalization on these ties is more viable. Collectively, the results show that a standardized process for achieving both export financial and export strategic performances is not feasible, while a customized process for each export performance is needed.

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Article
Publication date: 9 July 2021

Henry F.L. Chung and Mia Hsiao-Wen Ho

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic…

Abstract

Purpose

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.

Design/methodology/approach

This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.

Findings

Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.

Research limitations/implications

This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).

Practical implications

While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.

Originality/value

This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

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Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…

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55374

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 1 May 1992

Marilyn M. Helms, Paula J. Haynes and Sam D. Cappel

Investigates the relationship between competitive strategies andbusiness performance in the retailing industry and provides an empiricalinvestigation of strategic…

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1610

Abstract

Investigates the relationship between competitive strategies and business performance in the retailing industry and provides an empirical investigation of strategic approaches to competitive success adopted by various groups of retailers. In the past, examinations of this relationship have focused on samples from the industrial sector and have not investigated samples in the retail sector. Findings indicate that, both in terms of financial performance and operating performance, the group of retailers employing a combination of lowcost/ differentiation strategy to attain competitive advantage outperform those using a singular strategic approach.

Details

International Journal of Retail & Distribution Management, vol. 20 no. 5
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 18 July 2008

Baofeng Huo, Willem Selen, Jeff Hoi Yan Yeung and Xiande Zhao

The aim of this paper is to develop an overarching framework to better understand drivers of performance in third‐party logistics (3PL) linked to the operations strategy

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3653

Abstract

Purpose

The aim of this paper is to develop an overarching framework to better understand drivers of performance in third‐party logistics (3PL) linked to the operations strategy literature.

Design/methodology/approach

A path model is specified and estimated based on constructs and relationships grounded in the literature, as well as self‐developed constructs, using empirical data from 159 3PL providers in Hong Kong.

Findings

Some dimensions of internal and external environments have positive influences on differing operations emphases. Furthermore, operational performance is positively affected by corresponding operations emphases and functional involvement. Finally, good operational performance can bring about better financial performance. However, strict adherence to the low cost operations emphasis will lead to worse financial performance.

Originality/value

This research provides a novel overarching framework to link competition in the market place, challenges in the operations and functional involvement through operations emphases to operational and financial performance.

Details

International Journal of Operations & Production Management, vol. 28 no. 8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 10 January 2020

Murat Akpinar

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing…

Abstract

Purpose

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location choices at product category level in the European automotive industry.

Design/methodology/approach

Seven hypotheses are formulated and tested using binomial logistic regression with data from 148 passenger car models (i.e. product category level) that are sold in Europe and manufactured in countries that offer CSAs of either cost advantages or differentiation advantages. The first four hypotheses test manufacturing location choices of product categories pursuing cost leadership strategy, differentiation strategy, focus strategy and hybrid strategy. The other three hypotheses test whether FSAs of R&D capability, marketing capability and operations capability will impact on the manufacturing location choice. The tests control for the type of passenger cars as well as the manufacturer’s region of origin.

Findings

While pursuing cost leadership strategy leads to manufacturing in countries that offer cost advantages, pursuing differentiation strategy as well as strong R&D capability and marketing capability result in manufacturing in countries that offer differentiation advantages. Focus strategy, hybrid strategy and operations capability do not have an impact on the manufacturing location choice at product category level.

Research limitations/implications

Conducting empirical research at product category level is subject to limitations in the choices of FSAs due to lack of availability of data.

Practical implications

Managers should assess the competitive strategies and FSAs of their product categories and then decide about manufacturing locations based on their fit with host country CSAs. Policymakers should understand the CSAs of their countries and target to attract manufacturing FDI from product categories with matching competitive strategies and FSAs.

Originality/value

The research contributes to discussions in explaining manufacturing location choices. Its originality lies in being the first study to test the fit of competitive strategies and FSAs of product categories with CSAs.

Details

Competitiveness Review: An International Business Journal , vol. 30 no. 3
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in…

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11232

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

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Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

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Article
Publication date: 9 October 2017

Anders Pehrsson

The study draws on the resource-based view and the contingency view of strategy. The purpose of this paper is to contribute to international strategy literature by…

Abstract

Purpose

The study draws on the resource-based view and the contingency view of strategy. The purpose of this paper is to contribute to international strategy literature by extending the current understanding of foreign subsidiary’s competitive strategy in terms of cost leadership and product differentiation.

Design/methodology/approach

Hypotheses concern associations between corporate support building on product and skills relatedness and subsidiary strategies. Also, it is hypothesized that strategies are due to the type of local competitive intensity. The hypotheses were tested on wholly owned subsidiaries of Swedish industrial firms in Germany, the UK and the USA.

Findings

Product and skills relatedness between the subsidiary and the corporate core unit are positively associated with the subsidiary’s emphasis on cost leadership. Also, a positive association was found between skills relatedness and product differentiation, and extensive competitive intensity strengthens the relationship.

Research limitations/implications

The study specifies what business relatedness is needed for a subsidiary’s competitive strategy; skills relatedness is more important than product relatedness; the type of local competitive intensity is important; corporate support and local strategy operate simultaneously.

Practical implications

Management is advised to implement a foreign subsidiary’s competitive strategy by recognizing the mechanisms identified in this study.

Originality/value

In a unique way, the study captures the role of corporate support of a foreign subsidiary’s competitive strategy relying on business relatedness and the importance of aligning the strategy with competitive intensity.

Details

European Business Review, vol. 29 no. 6
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 2 October 2017

Ahmad Herzallah, Leopoldo J. Gutierrez-Gutierrez and Juan Francisco Munoz Rosas

The purpose of this paper is to examine the relationship between quality ambidexterity (QAMB), competitive strategies (cost leadership, differentiation, and focus), and

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1480

Abstract

Purpose

The purpose of this paper is to examine the relationship between quality ambidexterity (QAMB), competitive strategies (cost leadership, differentiation, and focus), and firm performance in Palestinian industry, and to analyze the combination of quality exploitation (QEI) and quality exploration (QER) (QAMB) associated with the different levels of each competitive strategy.

Design/methodology/approach

Using data collected through a survey of 205 Palestinian industrial firms, the study conducted structural equation modeling to test the proposed relationships. Additional statistical analyses were applied to the combinations of QEI and QER for each competitive strategy.

Findings

The results show a positive and significant relationship between QAMB and three competitive strategies, and between competitive strategies and financial performance, focus strategy excepted. Balanced combination with similar levels of QEI and QER is found to be more suitable for higher levels of competitive strategies implementation, whereas an excess of QER over QEI is associated with lower levels of strategies implementation.

Research limitations/implications

Although Palestine has two regions, the West Bank and the Gaza Strip, all survey respondents were from the West Bank. The data used in this study come from the industrial sector only.

Originality/value

This study is the first empirical test to examine the impact of QAMB on financial performance through competitive strategies. The study results may help managers to implement QEI and QER practices in order to allocate resources effectively and ultimately improve financial performance.

Details

International Journal of Operations & Production Management, vol. 37 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

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