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Article
Publication date: 1 April 1998

Morgan Swink and W. Harvey Hegarty

Notes that substantive relationships between dimensions of competition and supportive manufacturing strengths have not been clearly established. Existing priorities‐based models…

6671

Abstract

Notes that substantive relationships between dimensions of competition and supportive manufacturing strengths have not been clearly established. Existing priorities‐based models of strategy ignore the dynamics of manufacturing capabilities. Furthermore, these models employ highly aggregated concepts which mix together operational priorities, outcomes, and capabilities, making hierarchical relationships in strategy difficult to define. Develops and proposes a new framework which modifies existing models of business strategy and manufacturing strategy in order to clarify and define core dimensions of competitive differentiation and manufacturing capabilities. Discusses relationships among these dimensions that are apparent in previous research and case studies. These relationships are summarized by a comprehensive model with propositions regarding supportive links between manufacturing capabilities, manufacturing outcomes, and product differentiation. Concludes by suggesting directions for tests of the model and for related future research.

Details

International Journal of Operations & Production Management, vol. 18 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 28 February 2020

Allan Discua Cruz, Leonardo Centeno Caffarena and Marcos Vega Solano

There is a growing interest in understanding the strategic behaviour of family firms producing international commodities such as coffee, particularly in contexts where decisions…

1153

Abstract

Purpose

There is a growing interest in understanding the strategic behaviour of family firms producing international commodities such as coffee, particularly in contexts where decisions about what products to sell, where to commercialise them and how to promote them appear to be highly based on both business and family aspects. The purpose of this paper is to explore product differentiation strategies in family firms in the specialty coffee industry across Latin American countries. Whilst the socioeconomic relevance of coffee production in Central America is unequivocal, the approach and rationale of families that engage in specialty coffee production remain underexplored.

Design/methodology/approach

This study examines product differentiation in specialty coffee family farms across countries in Central America: Guatemala, Honduras and Nicaragua. The study relies on in-depth interviews, case studies and an interpretative approach to unpick the dynamics of product differentiation by families in business dedicated to producing specialty coffee.

Findings

The findings show that product differentiation in specialty coffee family farms is influenced by both business and family aspects and driven by entrepreneurial stewards. Coffee-farming families can engage in product differentiation through a shared vision, a combination of traditional and specialised knowledge, and through the continuous development of an exchange network. The findings reveal a connection between families in business balancing family and business interests, and the strategic intention to build up their assets entrepreneurially over time.

Originality/value

This study contributes to the literature on stewardship and strategic behaviour in family firms when families in business engage in differentiating their products in a highly competitive industry. More specifically, this study focuses on companies across countries where coffee is of crucial socioeconomic importance, and where the said companies are owned and managed by families. The study expands understanding of product differentiation in family-enterprise-first businesses and suggests that the family elements in differentiation can be explained through an entrepreneurial stewardship perspective.

Details

Cross Cultural & Strategic Management, vol. 27 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 25 January 2008

Martin Hingley, Valeria Sodano and Adam Lindgreen

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the…

7187

Abstract

Purpose

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the food market; and second, to analyse the current structure and organisation of the fresh produce market (fruit, vegetable, and salad) in the light of new product procurement, innovation, and differentiation policies carried out by retailers at the global level.

Design/methodology/approach

The paper used a single dyadic case study across two countries (Italy and the UK): the primary producer is engaged in “partner” supply to a principal category management intermediary for channel leading multiple retailers.

Findings

First, equilibrium in differentiated markets is not stable, and a welfare assessment is difficult. Second, a differentiation strategy in the market for fresh produce might benefit retailers more than in other sectors, which seem to be consistent with the theoretical findings. Third, when retailers engage in product differentiation it is more likely that channel relationships shift from collaborative to competitive types, with the power imbalance becoming the disciplinary means by which vertical coordination is achieved and maintained.

Research limitations/implications

This article was based on a single case study.

Practical implications

For suppliers it could be wise to agree to some inequity as the cost of doing business, especially when smart large retailers carry out successfully competitive strategies with positive spill‐over effects on the upstream firms.

Originality/value

Using the industrial economic literature on the effects of differentiation strategies (horizontal and vertical differentiation) on market structure, firms' performance, and welfare effects, this paper analyses case findings from a study in the fresh produce industry and will be of interest to those within the field.

Details

British Food Journal, vol. 110 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 3 July 2020

Rui Sousa and Giovani J.C. da Silveira

This study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change)…

1259

Abstract

Purpose

This study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change), strategic focus on product and service differentiation, ADS offerings and differentiation advantage.

Design/methodology/approach

The authors develop and test hypotheses through structural equation modeling based on data from the Sixth International Manufacturing Strategy Survey (IMSS-VI), involving 931 manufacturers from 22 countries.

Findings

The results indicate that (1) market complexity has a positive impact on strategic focus on product and service differentiation; (2) focus on product and service differentiation, but not market complexity, has a positive impact on the extent to which business units offer ADS to their customers; (3) ADS have a positive impact on service differentiation advantage, but no influence on product differentiation advantage.

Practical implications

Managers should incorporate decisions related to ADS provision as part of their manufacturing strategy formulation processes to align markets, strategic focus on product and service differentiation, and ADS provision. ADS seem an appropriate lever for market differentiation, because they appear not only to support service differentiation advantage, but also to be consistent with strategic focus on product differentiation.

Originality/value

The study provides novel insights and large-scale empirical evidence on the influence of the market environment on the offering of ADS, as well as on how relationships between the product and service activity in the manufacturing organization may affect differentiation advantage.

Details

International Journal of Operations & Production Management, vol. 40 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 23 April 2024

Delphine Caruelle

The purpose of this paper is to examine the consumer response to brands offering gendered product differentiation (i.e. products “for her” or “for him”).

Abstract

Purpose

The purpose of this paper is to examine the consumer response to brands offering gendered product differentiation (i.e. products “for her” or “for him”).

Design/methodology/approach

Across three experiments, the effect of gendered (vs gender-unrelated) product differentiation on perceived brand sexism and word-of-mouth intention was tested. The moderating effects of feminist identity (Studies 1 and 2), endorsement of sexist beliefs (Study 2) and basis (stereotypical vs biological) for product differentiation (Study 3) were also tested.

Findings

Consumers perceive brands that offer gendered product differentiation as sexist, which in turn leads to negative word-of-mouth intention. Moreover, consumers with a strong feminist identity are more likely to perceive brands that offer gendered product differentiation as sexist, whereas consumers who endorse sexist beliefs are less likely to do so. Finally, consumers respond negatively when the gendered product differentiation is based on a gender stereotype, but much less so when it seems based on a biological difference between sexes.

Originality/value

Although multiple brands offering gendered products have been denounced by consumers as sexist, no research has examined this phenomenon. This paper pioneers in examining the consumer response to brands offering gendered product differentiation and in demonstrating that consumers perceive such brands as sexist.

Details

Journal of Product & Brand Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 26 March 2024

Gonçalo Cordeiro de Sousa

This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that…

Abstract

Purpose

This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.

Design/methodology/approach

Using data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.

Findings

Our findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.

Practical implications

This research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.

Originality/value

This study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 10 October 2022

Kamal Hossain, Ahmad Sufian Che Abdullah, Mohd Abd Wahab Fatoni Mohd Balwi, Asmuliadi Lubis, Noor Azlinna Azizan, Mohammad Nurul Alam and Azni Zarina Taha

This study aims to examine the effect of entrepreneurial orientation (EO) on the export performance of apparel small- and medium-sized enterprises (SMEs) and the role of multiple…

1098

Abstract

Purpose

This study aims to examine the effect of entrepreneurial orientation (EO) on the export performance of apparel small- and medium-sized enterprises (SMEs) and the role of multiple differentiation strategy as a mediation effect between their relationships. It has also investigated the moderation impact of export market category between EO and performance relationship. The multiple differentiation strategy comprises the product (PDD), customer (CTD), service (SVD) and brand (BDD) differentiations.

Design/methodology/approach

A cross-sectional survey was carried out by providing a questionnaire to senior managers and owners of the apparel SMEs from the developed and developing markets exporters. The primary data of 550 was treated by the partial least squares-structural equation modelling) technique for final analysis.

Findings

The study revealed EO’s positive and significant effect on SMEs’ export performance. The study has found the mediation effect of product, customer and brand differentiation strategies between EO and export performance relationships from the mediation analysis. In contrast, service differentiation has found no mediation effect. However, the moderation effect (export market category) has revealed an insignificant effect between EO and performance association.

Research limitations/implications

The findings of this study are based on one country data analysis. This study has been conducted in the SMEs of the apparel industry in Bangladesh, considering only owners and senior-level managers of the firms.

Originality/value

This research has drawn the attention of managers/owners to EO and multiple differentiation strategies enhancing export performance from the developing country context, such as Bangladesh. Multiple differentiation as a competitive strategy is the pioneer application of mediating effect between EO and export performance relationships. Moreover, this research has investigated the effect of the export market category as a moderator. Dearth research has applied the export market category to investigate the moderation effect between EO-performance models. Therefore, current research has theoretical and practical contributions to the international entrepreneurship and strategic management literature.

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 location…

1163

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

Keywords

Article
Publication date: 1 October 1997

Alfred M. Pelham

Poses the question is the influence of market orientation stronger in specialty markets with high levels of differences in product features and customer needs/applications…

6445

Abstract

Poses the question is the influence of market orientation stronger in specialty markets with high levels of differences in product features and customer needs/applications, compared to commodity markets? Reports that regression results indicate that the only significant interaction is between customer differentiation and market orientation as an influence on new product success, relative product quality and customer retention. However, examination of partial correlations in the quadrants formed by customer and product differentiation indicates that market orientation seems to be a more important determinant of all aspects of performance in markets characterized by low levels of customer differentiation but high levels of product differentiation. Examination of these quadrants suggests that market orientation may be a more important determinant of performance in the high product differentiation/low customer differentiation quadrant, because of high levels of change in technology and customer needs. States that, in addition in this quadrant, there is an indication that since large firms have the advantage in R&D emphasis, small firms need more market orientation to compete. Although market orientation had no influence on performance in the commodity segment, there is an indication that smaller firms may need a higher level of market orientation to compete with large firms emphasizing low‐cost advantages.

Details

Journal of Business & Industrial Marketing, vol. 12 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

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