Alliance behaviour, absorptive capacity and competitive advantage: a comparative study of biopharmaceutical firms in Europe and the US

In this thesis, we explore the relationship between absorptive capacity and alliances, and their influence on firms’ competitive advantage in the US and European biopharmaceutical sectors. The study undertaken in this thesis is based on data from a large-scale international survey of over 2,500 biopharmaceutical firms in the US, the UK, Germany, France and Ireland. The thesis advanced a conceptual framework, which integrated the multi-dimensions of absorptive capacity, exploration-exploitation alliances, and competitive advantage, into a biopharmaceutical firm’s new product development process. The proposed framework is then tested in the empirical analysis, using truncated models to estimate firms’ sales growth, with zero-inflated negative binominal models capturing the number of alliances in which firms engage, and aspects of realised absorptive capacity analysed by ordinal probit models. The empirical results suggest that both skill-based and exploitation-based absorptive capacity play crucial roles in shaping firms’ competitive advantage, while neither exploratory nor exploitation alliances contribute to the improvement in firms’ competitive position. In terms of the interaction between firms’ absorptive capacity and alliance behaviour, the results suggest that engagement with exploratory alliances depends more strongly on firms’ assimilation capability (skills levels and continuity of R&D activities), while participation in exploitation alliances is more conditional on firms’ relevant knowledge monitoring capability. The results highlight the major differences between the determinants of firms’ alliance behaviour, and competitive advantage in the US and Europe – in the US firms’ skill levels prove more significant in determining firms’ engagement with exploratory alliances, whereas in Europe continuity of R&D proves more important. Correspondingly, while US firms’ engagement with exploitation alliances depends on market monitoring capability, that in Europe is more strongly linked to exploitation-based absorptive capacity. In respect of the determinants of firms’ competitive advantage – in Europe, market monitoring capability, engagement with exploitation alliances, and continuous R&D activities, prove more important, while in the US, it is firms’ market characteristics that matter most.

Utilising online shopping environment attributes holistically to create competitive advantage

As more consumers shop online, it becomes crucial for marketers to know how online shopping environments (OSEs) can be used to gain competitive advantage. This dissertation aims to explain theoretically how OSE attributes work together holistically to produce desirable consumer responses, applying and extending a theory from the environmental psychology literature to the online context. Firstly, the study conceptualises OSEs as virtual environments which may be perceived and experienced both cognitively and affectively through a technology-mediated interaction with a computer screen. A multi-disciplinary approach identifies key characteristics of OSEs: they involve consumers; they are more complex than their offline counterparts; they are likely first apprehended holistically; and they can elicit high levels of emotions and cognition. Secondly, the research uses a gestalt approach and extends Kaplan and Kalan’s (1982) Preference Framework, taking account of the specific characteristics of OSEs, which one visits specifically to obtain product information. The results support the proposition that OSEs are perceived in terms of their Sense-making and Exploratory attributes. Thirdly, the research explains how OSE attributes work together to produce desirable consumer responses. As hypothesised, Exploratory potential produces both Hedonic and Utilitarian value, and both kinds of value contribute to Site commitment. An unexpected result is that Sense-making potential does not produce Utilitarian value directly, but only through the mediation of Exploratory potential. The research contributes to marketing theory by: (1) identifying ways the internet has changed the nature of the shopping experience; (2) extending Kaplan and Kaplan’s Preference Framework to explain how consumers perceive OSEs holistically; (3) identifying the distinction between page-level and site-level perceptions, and (4) distinguishing between different sources of information (marketer vs. non-marketer). Managerially, the research provides a model for marketers to conceive and design retail websites whose attributes work together to create competitive advantage.

Realising competitive advantage:bicycle manufacture - manufacturing engineering and management

Students at Cranfield Manufacturing Systems Centre helped Brompton Bikes formulate a strategy to meet rapid sales growth. The students took up Operations Excellence MSc, a two-year part-time programme based on the Cranfield MSc in Engineering and Management of Manufacturing Systems, include the Realising Competitive Manufacture module, which is set out to consolidate and embed the knowledge and skills developed throughout the two-year programme. Guided by StratNav process, the students analysed the product families of Brompton, established the basis on which they compete in the market place, and then benchmarked against key competitors. The top five developments identified to be needed by Brompton are: the formation of group technology cells, creation of a robotic brazing facility, and training and recruitment initiatives for production staff.

Market orientation of service networks:direct and indirect effects on sustained competitive advantage

Market orientation is an organization-wide concept that helps explain sustained competitive advantage (SCA). Since networks become ever more important, especially in the service sector, there is need to expand the concept of MO to a network setting. In line with Narver and Slater (1990), the concept of Market Orientation of Networks (MONW) is developed. This study indicates how MONW relates to the resource-based view (RBV) of the firm and the industrial organization (IO) view in explaining SCA. It is argued that MONW has direct and indirect effects on SCA. More precisely, the antecedent effect of MONW to resources and industry structure is considered.

Competition, competitive advantage, and clusters:the ideas of Michael Porter

Comprehensive coverage of all aspects of Michael Porter's works Contributions from leading authorities across the disciplines Contains response from Porter Harvard professor, Michael Porter has been one of the most influential figures in strategic management research over the last three decades. He infused a rigorous theoretical framework of industrial organization economics with the then still embryonic field of strategic management and elevated it to its current status as an academic discipline. Porter's outstanding career is also characterized by its cross-disciplinary nature. Following his most important work on strategic management, he then made a leap to the policy side and dealt with a completely different set of analytical units. More recently he has made a foray into inner city development, environmental regulations, and health care services. Throughout these explorations Porter has maintained his integrative approach, seeking a road that links management case studies and the general model building of mainstream economics. With expert contributors from a range of disciplines including strategic management, economic development, economic geography, and planning, this book assesses the contribution Michael Porter has made to these respective disciplines. It clarifies the sources of tension and controversy relating to all the major strands of Porter's work, and provides academics, students, and practitioners with a critical guide for the application of Porter's models. The book highlights that while many of the criticisms of Porter's ideas are valid, they are almost an inevitable outcome for a scholar who has sought to build bridges across wide disciplinary valleys. His work has provided others with a set of frameworks to explore in more depth the nature of competition, competitive advantage, and clusters from a range of vantage points.

Gaining competitive advantage through your supply chain

Supply chain management in the pharmaceutical industry is the key to further enhancing shareholder value

Evaluating the use of IT by the third party logistics in South East Asia to achieve competitive advantage and its future trend

As the number of using 3PL providers are increasing rapidly in recent years, 3PL providers play a major role in the logistics industry. Due to customers demands are raising and changing, it has facilitated 3PL providers to invest IT systems that could meet customer requirements and create competitive advantage. The use of IT systems could assist 3PL providers to achieve supply chain visibility and enhance supply chain collaboration with business partners. In this paper, it is mainly focus on the Europe and Far East 3PL providers in terms of current and future IT systems, IT motivators and barriers, as well as the future supply chain demands that address by IT systems. The common IT system that implemented in both regions is information technology, which is mainly used to collaborate and share information with supply chain partners. Some of the common motivations and barriers were existed and 3PL providers need to be understood. Given the future demands of IT implementation and supply chain collaboration, IT systems such as RFID and integration systems would be strongly focus in the future. The suggestion about the advanced integration system such as business process management (BPM) could be the next key IT systems in the future logistics industry. © 2012 AICIT.

Enhancing competitive advantage with radio-frequency identification (RFID) enabled returnable transport equipment (RTE)

Fierce competition within the third party logistics (3PL) market has developed as providers compete to win customers and enhance their competitive advantage through cost reduction plans and creating service differentiation. 3PL providers are expected to develop advanced technological and logistical service applications that can support cost reduction while increasing service innovation. To enhance competitiveness, this paper proposes the implementation of radio-frequency identification (RFID) enabled returnable transport equipment (RTE) in combination with the consolidation of network assets and cross-docking. RFID enabled RTE can significantly improve network visibility of all assets with continuous real-time data updates. A four-level cyclic model aiding 3PL providers to achieve competitive advantage has been developed. The focus is to reduce assets, increase asset utilisation, reduce RTE cycle time and introduce real-time data in the 3PL network. Furthermore, this paper highlights the need for further research from the 3PL perspective. Copyright © 2013 Inderscience Enterprises Ltd.

Current and future uses of IT in Europe and the Far East:achieving competitive advantage with 3PL

Current and future IT applications effecting supply chains in Europe and Pacific Asia are investigated. 3PL providers increasingly use IT systems for logistics, to enhance supply chain collaboration with business partners. Advanced systems are not always immediately profi table. Most companies already implement IT systems for processing transactions but motivations vary and barriers remain since 3PL providers incompletely understand clients' IT requirements. Long-term productivity gains require sophisticated IT systems to streamline cycles and improve supply chain visibility to facilitate, plan and make decisions. RFID and advanced integration systems, including Business Process Management, are probably the next trend in IT logistics systems. Copyright © 2012 Inderscience Enterprises Ltd.

Servitization and competitive advantage:the importance of organizational structure and value chain position

Servitization represents a business-model change and organizational transformation from selling goods to selling an integrated combination of goods and services. Competitive advantage is one outcome of this shift. During servitization, companies follow stages to realize services as an opportunity to differentiate from goods and achieve higher customer satisfaction. This study analyzes this transition from base, intermediate, and advanced services by presenting results from 102 senior executives in multinational companies. Our results suggest increasing interest in service-led strategies in manufacturing companies. The results also show that increasing differentiation and high customer satisfaction are fundamental to achieving competitive advantage and superior performance with services. The analysis also indicates the importance of a company’s position in the value chain and the organizational structure it selects to support services in successful servitization.

The competitive advantage of nations:origins and journey

Purpose – The purpose of this paper is to provide an understanding of the origins and journey of the fundamental ideas underpinning Michael Porter’s The Competitive Advantage of Nations as a means of assessing its influence. Design/methodology/approach – Drawing on a reflection of the book’s text and associated works by Porter, the paper shows how Porter’s thinking evolved from his earlier writings, as well as how his ideas went through further periods of development following the publication of The Competitive Advantage of Nations. Findings – The paper focuses on the emergence of Porter’s cluster theory and his growing acknowledgement of the role of innovation within processes of economic development. It shows how these concepts have provided a foundation for contemporary economic development practices. Also, the paper highlights how the fundamental concepts of Porter’s text have shifted from a unit of analysis focused on nations to one where subnational regions are the primary analytical unit. Originality/value – The paper concludes by suggesting that the nature of Porter’s conceptual insights is likely to ensure the long-term endurance of the fundamental lessons contained within The Competitive Advantage of Nations.

Is keiretsu really a source of competitive advantage for Japanese automotive suppliers?

Purpose - The purpose of this paper is to examine how firms create and sustain competitive advantage in the inter-firm business relationships from a supplier's perspective. It also investigates what factors affect their competitiveness and relationship between buyers and suppliers. Design/methodology/approach - This is an exploratory study on keiretsu partnerships composed of four main phases: analysis of theoretical perspectives, construction of a conceptual framework, interview of a CEO, and finally, a survey questionnaire with Japanese automotive suppliers. Findings - As a result, this paper classified these 11 companies into four supplier groups (affiliated or independent Tier 1 suppliers; affiliated or independent Tier 2 suppliers) and analysed their competitiveness developing the research propositions further. The benefits of affiliation under a keiretsu partnership are discussed, showing that there may be little benefit in being an affiliated Tier 1 supplier. Even more critical, the results show that independent Tier 2 supplier may be more competitive than affiliated tier ones. Originality/value - These intriguing results reveal an urgent need of investigating Japanese automotive supply chains from the suppliers' perspectives in the future research. This paper extended the literatures on competitive advantage and business relationships at both theory and managerial practice.