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Article
Publication date: 1 July 2006

Manuel Rodríguez‐Díaz and Tomás F. Espino‐Rodríguez

The purpose of this paper is to analyze the competitive advantages of the networks of firms forming the supply chain and distribution channels through process integration…

4753

Abstract

Purpose

The purpose of this paper is to analyze the competitive advantages of the networks of firms forming the supply chain and distribution channels through process integration, outsourcing, and creation of relational capabilities.

Design/methodology/approach

A four‐stage methodology is created to redesign the supply chain depending on the creation of relational capabilities: internal analysis to determine the focal company's competence; relational analysis in the outsourcing of activities; process integration; and development of relational capabilities.

Findings

The development of relational capabilities is based on two dimensions: company level of competence in performing activities, and strategic contribution of the activities to competitive advantage. Four cases are analyzed from those two dimensions: high competence/low strategic contribution; low competence/high strategic contribution; low competence/low strategic value; and relational and internal capabilities, where relational capabilities strengthen internal capabilities. Finally, it is established what actions are necessary for the activities analyzed from those dimensions to be a source of competitive advantage by means of relational capabilities created through process integration and outsourcing to highly competent firms.

Practical implications

The development of a short self‐evaluation questionnaire that helps firms implement the methodology and creates the basis for its empirical application by researchers.

Originality/value

The paper studies relational capabilities, an aspect omitted from the internal perspective of the resource and capability theory. It also determines four ways in which relational capabilities influence the strengthening of internal capabilities. The theoretical approach is developed in the redesign of the supply chain.

Details

Business Process Management Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 14 September 2015

Stanley E. Fawcett, Matthew W. McCarter, Amydee M Fawcett, G Scott Webb and Gregory M Magnan

The purpose of this study is to elaborate theory regarding the reasons why collaboration strategies fail. The relational view posits that supply chain integration can be a source…

4696

Abstract

Purpose

The purpose of this study is to elaborate theory regarding the reasons why collaboration strategies fail. The relational view posits that supply chain integration can be a source of competitive advantage. Few firms, however, successfully co-create value to attain supernormal relational rents.

Design/methodology/approach

This study uses a quasi-longitudinal, multi-case interview methodology to explore the reasons why collaboration strategies fail to deliver intended results. The authors interviewed managers at 49 companies in Period 1 and managers at 57 companies in Period 2. In all, 15 companies participated in both rounds of interviews.

Findings

This study builds and describes a taxonomy of relational resistors. The authors then explore how sociological and structural resistors reinforce each other to undermine collaborative behavior. Specifically, the interplay among resistors: obscures the true sources of resistance; exacerbates a sense of vulnerability to non-collaborative behavior that reduces the willingness to invest in relational architecture; and inhibits the development of essential relational skills and organizational routines.

Originality/value

This research identifies and describes the behaviors and processes that impede successful supply chain alliances. By delving into the interplay among relational resistors, the research explains the detail and nuance of inter-firm rivalry and supply chain complexity. Ultimately, it is the re-enforcing nature of various resistors that make it so difficult for firms to realize relational rents.

Details

Supply Chain Management: An International Journal, vol. 20 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 5 October 2010

Paavo Ritala and Hanna‐Kaisa Ellonen

The purpose of this paper is to examine how different strategy theories complement each other with respect to understanding competitive advantage of a single firm that utilizes…

3674

Abstract

Purpose

The purpose of this paper is to examine how different strategy theories complement each other with respect to understanding competitive advantage of a single firm that utilizes interfirm cooperation.

Design/methodology/approach

The paper provides an analytical review of three schools of strategy research in order to highlight their contributions, shortcomings, and interrelations with respect to sustainable competitive advantage and to clarify their explanations of competitive advantage in interfirm cooperation. On the basis of this analysis, an integrated perspective that captures industry, organization, and relationship attributes is proposed.

Findings

The paper suggests that old and new paradigms in strategic management (industrial organization economics, resource‐based theories, and the relational view) are applicable alongside each other when analyzing how a single firm gains competitive advantage by utilizing interfirm cooperation. It is argued here that no paradigm can be used to substitute others and thus an integrated perspective is needed. The paper provides a discussion and implications on how each paradigm complements others and illustrate this by sketching a refined strengths, weaknesses, opportunities, threats (SWOT) analysis framework.

Practical implications

The paper gives a practical implication for managers who utilize traditional SWOT analysis in their decision making. By including relationship potential and limitations to the conceptual toolbox of thinking strategy through SWOT, managers can gain additional insight into internal strengths and weaknesses and external opportunities and threats analysis.

Originality/value

The study increases understanding on how prevailing perspectives on competitive advantage can be used in analyzing interfirm cooperation.

Details

Competitiveness Review: An International Business Journal, vol. 20 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 18 April 2016

Carlos M. F-Jardon and Regina Negri Pagani

Small and medium enterprises (SMEs), which main objective is to satisfy the basic needs of the entrepreneur, when geographically concentrated make up subsistence clusters. The…

Abstract

Purpose

Small and medium enterprises (SMEs), which main objective is to satisfy the basic needs of the entrepreneur, when geographically concentrated make up subsistence clusters. The purpose of this paper is to analyze collective efficiency in subsistence clusters as growth strategy and how is the process through which the relational capital and territorial proximity altogether improve performance of firms.

Design/methodology/approach

The research uses partial least squares techniques applied to a sample of 113 SMEs of wood industry in Oberá, Argentina.

Findings

SMEs in subsistence clusters can use relational capital and territory as resources to generate competitive advantages. These competitive advantages foster performance. In consequence, collective efficiency appears as growth strategy in subsistence SMEs.

Research limitations/implications

Data are cross-sectional and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector and generalizations should be done carefully.

Practical implications

SMEs probably should integrate and share industrial and business structures to develop systemic competitive advantages with a collective character. SMEs should leverage their spatial interaction to build trust and establish networks of cooperation that will be the source of their collective efficiency. These collaboration networks should base in the local knowledge.

Social implications

Subsistence SMEs have strong impact on the most disadvantaged areas in developing countries. Growth strategies to professionalize these SMEs will have a major impact on the endogenous development of those territories.

Originality/value

The research provides a mechanism through which collective efficiency leads to better performance for subsistence SMEs.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 3 January 2023

Jose Celso Contador, Jose Luiz Contador and Walter Cardoso Satyro

This paper proposes the “fields and weapons of the competition model applied to business networks” – CAC-Redes (in Portuguese, Campos e Armas da Competição – Redes de negócio), an…

Abstract

Purpose

This paper proposes the “fields and weapons of the competition model applied to business networks” – CAC-Redes (in Portuguese, Campos e Armas da Competição – Redes de negócio), an extension of the fields and weapons of the competition model (CAC) – to study the competition and competitiveness of companies operating in business networks in a competitive environment while integrating organizational competencies, interorganizational ties and company positioning to provide competitive advantage.

Design/methodology/approach

CAC-Redes is born from the cross-fertilization process of various theoretical perspectives, namely, industrial organization, traditional view of operational activities and resources, relational view, strategic alignment, transaction cost theory and social perspectives in networks, structured according to systems theory and under the mantle of competitive advantage theory. To discover the structure of existing models of competitiveness in networks, a bibliographic search was conducted in the Scopus database. Quali-quantitative empirical research was undertaken in companies from six different economic sectors through structured questionnaires and personal interviews to understand how companies competed and discover the determining factors of their competitive advantage.

Findings

Only seven models of competitiveness in network were found, and their structures and characteristics are quite different from those of CAC-Redes. Empirical research confirms all the hypotheses that support CAC-Redes, which, combined with those of CAC, indicate the CAC-Redes corroboration.

Research limitations/implications

CAC-Redes does not apply to networks without intercompany competition, studies on network governance and corporate strategy formulation.

Practical implications

CAC-Redes is effective in studying complex competitiveness phenomena because it considers multiple influences; provides a process based on qualitative and quantitative variables that increase the probability of formulating successful competitive strategies; simplifies the differentiation of skills from core competencies and determines them; proposes a competitive advantage criterion to select suppliers; creates a unifying language to represent the different strategic specificities of companies, competitors, suppliers, customers and the company environment and provides a library containing 181 weapons (resources) and dozens of interorganizational ties that can be used in empirical studies with other methodologies.

Social implications

CAC-Redes, due to its originality and peculiarities, theoretically contributes to theory of resources because it dispenses with the assumption, “unique resource, source of competitive advantage”; to relational view because it considers interorganizational relationships as a competence and treats it quali-quantitatively and to core competencies because if the strategy changes, different core competencies will be needed. Furthermore, it is an alternative to the dynamic capabilities perspective, and it transforms the five manufacturing performance objectives into nine for the entire company.

Originality/value

CAC-Redes is an original model because its structure and characteristics comparatively differ from those of existing models, and 14 singularities are detected.

Article
Publication date: 4 December 2017

Nixon Kamukama and Tumwine Sulait

The paper examines individual contribution of intellectual capital elements to competitive advantage. The purpose of this paper is to explore the weight of individual intellectual…

Abstract

Purpose

The paper examines individual contribution of intellectual capital elements to competitive advantage. The purpose of this paper is to explore the weight of individual intellectual capital elements in explaining competitive advantage in Uganda’s microfinance industry.

Design/methodology/approach

Hierarchical regression was used because of its capacity to indicate precisely what happens to the model as different predictor variables are introduced.

Findings

This study confirms that the three intellectual capital elements are the strong predictors of competitive advantage and they account for 44 percent of variance in competitive advantage. However, the order of importance of these variables in explaining the variance in competitive advantage in the microfinance industry (basing on their standardized β values) is relational capital, structural capital and human capital.

Research limitations/implications

Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate the data. Furthermore, the findings from the present study are cross-sectional; future research should be undertaken to examine the longitudinal effects of intellectual capital elements.

Practical implications

The findings can help the management to intensify initiatives to encourage greater understanding and acceptance of the concept of intellectual capital that boosts competitive edge in the industry.

Originality/value

This is the first study that focuses on testing the individual contribution of intellectual capital dimensions to competitive advantage in Uganda’s microfinance institutions.

Details

African Journal of Economic and Management Studies, vol. 8 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 24 May 2013

Nixon Kamukama

The purpose of this paper is to examine the individual contribution of intellectual capital elements to competitive advantage. It aims to explore the extent to which intellectual…

2975

Abstract

Purpose

The purpose of this paper is to examine the individual contribution of intellectual capital elements to competitive advantage. It aims to explore the extent to which intellectual capital elements can explain competitive advantage in Uganda's microfinance industry.

Design/methodology/approach

Hierarchical regression was used because of its capacity to indicate precisely what happens to the model as different predictor variables are introduced.

Findings

This study confirms that the three intellectual capital elements are strong predictors of competitive advantage and they account up to 44 percent of variance in competitive advantage. Their order of importance in explaining the variance in competitive advantage (basing on their standardized beta values) is: structural capital, human capital and relational capital.

Research limitations/implications

Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate. Furthermore, the findings from the present study are cross‐sectional, future research should be undertaken to examine the effects of these variables across time.

Practical implications

The managers of microfinance firms need to appreciate that the rise of intellectual capital in the industry is unavoidable, given the competitive and technological forces that are sweeping the twenty‐first century.

Originality/value

This is the first study that focuses on testing the individual influence of intellectual capital elements on competitive advantage in Uganda microfinance industry.

Details

Competitiveness Review: An International Business Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 12 February 2019

Aki Jääskeläinen and Jussi Heikkilä

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by…

2651

Abstract

Purpose

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by investigating the delivery of value over three tiers in the supply chain, that is, from suppliers to the focal company, and further to the focal company’s customers following value chain logic.

Design/methodology/approach

The study is carried out as a qualitative interview study in four focal companies operating in business-to-business markets. A total of 32 interviews are conducted targeted to managers and directors of sales and marketing, purchasing, product/service development and business units.

Findings

The study unveils the characteristics and interplay of supplier-oriented and cross-functional PSM practices in customer value creation. The findings indicate that cross-functional integration between purchasing and the other functions of a focal firm is most beneficial in improving supply flexibility to fulfill customer preferences, identifying new supplier offerings for the customer and facilitating time-to-market of new products.

Research limitations/implications

This study enhances managers’ understanding of the characteristics of the non-financial benefits of purchasing and the role of PSM practices in customer value creation and business success. The findings are indicative of potentially successful practices in the contexts studied.

Originality/value

This study contributes to the supply chain management literature on the benefits of the purchasing function by highlighting the value created for the customer of a focal company. It also extends the discussion in the supply chain management literature on customer value creating interaction processes in business relationships by focusing on PSM practices.

Details

Supply Chain Management: An International Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 10 October 2016

Maryam Hosseini and Mohammad Saleh Owlia

The purpose of this paper is to present a model for measuring relational capital in banks by using measurement indicators defined in previous studies and according to the…

1827

Abstract

Purpose

The purpose of this paper is to present a model for measuring relational capital in banks by using measurement indicators defined in previous studies and according to the conditions of the banking industry and in particular the Ansar bank in Iran.

Design/methodology/approach

The study identifies measurement indicators of relational capital from the related resources and articles and uses content analysis and factor analysis methods. It also measures the selected indicators through a questionnaire analyzing them using the SPSS software to create a model to measure relational capital in the bank.

Findings

By using the measurement model created in this research, relational capital in Ansar bank is determined to be comprised of eight principal components. The total score of these components is the starting point of promoting the relational capital in the banking industry.

Research limitations/implications

This study may not have thoroughly covered the peer- reviewed articles on intellectual capital, but it can be assumed with high confidence that it has made a serious attempt at studying the most important papers on the subject as of date. Moreover, the model presented in this study is valid only when applied in comparing banks. It should further be noted that time limitation, non-availability of relevant experts as well as the required data may have affected the accuracy and reliability of the results. However, the final model has been utilized to try to optimally minimize each limitation according to the existing resources, and through their proper management.

Practical implications

This study provides a new approach that can significantly help bank managers in comparing their banks in the field of relational capital and reacting to their weaknesses and performance advantages of relational capital over its rivals.

Originality/value

In addition to creating a new framework for relational capital indicators, this study offers a model for measuring relational capital in the banks.

Details

Journal of Intellectual Capital, vol. 17 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 July 2004

Sheelagh Matear, Brendan J. Gray and Tony Garrett

This paper investigates how three marketing‐related sources of advantage – market orientation, new service development and brand investment – contribute to service firm…

6028

Abstract

This paper investigates how three marketing‐related sources of advantage – market orientation, new service development and brand investment – contribute to service firm performance by operationalising the sources‐position‐performance framework in a multi‐sector sample of service organisations. New service development and brand investment are found to contribute to the attainment of positional advantage and thence to performance. Market orientation, when considered in combination with these other sources, does not contribute directly to positional advantage and performance. Cost, brand and new service success positions are found to contribute to service firm performance.

Details

International Journal of Service Industry Management, vol. 15 no. 3
Type: Research Article
ISSN: 0956-4233

Keywords

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