Innovation and learning for sustainable competitive advantage : preliminary findings

Achieving and sustaining competitive advantage is a major challenge for firms in today’s dynamic global marketplace. The notion of sustained competitive advantage has been investigated through a number of paradigms, from the resource based view of the firm to dynamic capabilities. This paper reports preliminary findings from research which investigates the characteristics of innovative firms that have demonstrated competitive advantage over time, targeting factors that contribute to the firm’s performance. Key factors to sustaining competitive advantage include working with demanding customers, team based organizational cultures, engaging in challenging projects to make new to the world products, and using projects to generate the necessity for learning by doing, learning by using and learning by interacting in new product and process development.

Competitive advantage in public-sector organizations: explaining the public good/sustainable competitive advantage paradox

Resource-based views of the firm and in particular Kay's (Why Firms Succeed. Oxford: Oxford Univ. Press, 1995) model of sustainable competitive advantage have been used to advance an understanding of differences in the competitive advantage of private-sector firms. We extend the analysis to a public-sector firm where its major purpose includes engaging in public good by giving away its knowledge base and services. The case highlights the paradox that many public-sector organizations face in simultaneously pursuing public good and sustainable competitive advantage. While Kay's model is applicable for understanding intergovernmental agency competition, we find it necessary to incorporate resource dependency theory to address the paradox. Implications for theory and practice are provided. (C) 2002 Elsevier Inc. All rights reseved.

Sustainable competitive advantage in electronic business: towards a contingency perspective of the resource-based view

Our understanding of the nature of competitive advantage has not been helped by a tendency for theorists to adopt a unitary position, suggesting, for example, that advantage is industry based or resource based. In examining the nature of competitive advantage in an electronic business (e-business) environment this paper adopts a contingency perspective. Several intriguing questions emerge. Do 'new economy' companies have different resource profiles to 'old economy' companies? Are the patterns of resource development and accumulation different? Are attained advantages less sustainable for e-businesses? These are the kinds of themes examined in this paper. The literature on competitive advantage is reviewed as are the challenges posed by the recent changes in the business environment.Two broad sets of firms are identified as emerging out of the e-business shake up and the resource profiles of these firms are discussed. Several research propositions are advanced and the implications for research and practice are discussed.

Privatisation and sustainable competitive advantage in the emerging economies of Central Europe

Extant research on the impact of privatization in the Central Europe (CE) region has focused on improvements in efficiency and the nature of cost-based advantages. This study argues that the development of a vibrant privatized sector requires attention to the broader resource configurations of domestic enterprises. Empirical research was conducted on a large sample of firms in Poland, Hungary and Slovenia. Foreign investment was found to significantly impact on resource accumulation with implications for the development of strategic capabilities and competitive advantage. Foreign direct investment is an effective vehicle for the transfer of financial resources, reputation and new brands but not organizational capabilities. In terms of practice, this study demonstrates the important role of outside investment in the development of a firm's resource base (Frydman et al. 1999). Companies can gain a competitive advantage in their domestic markets through gaining access to the resources of foreign investors.

Key Organizational Resources and the Sustainable Competitive Advantage of Cornell University’s School of Hotel Administration: Suggestions for Tourism & Educational Programs in China

Tourism and hospitality scholars and educational institutions in developing countries can benefit from systematic analysis of their counterparts in developed countries. Using the framework of sustainable competitive advantage, this paper explores the key organizational resources of the School of Hotel Administration at Cornell University that have assured its position as the leading hospitality program worldwide. The paper analyses key resources Cornell Hotel School uses to leverage and sustain its competitive advantage. Suggestions for positioning and enhancing future Chinese tourism and hospitality programs are provided. [Abstract in Chinese] 中国旅游发展起步较晚,在旅游教育的多数领域落后于西方发达国家。选择西方优秀旅游院系进行系统研究并总结其成功经验,对于提高我国旅游教育水平有着重要的意义。本文以持续竞争优势理论为框架,以全球旅游接待业教育的典范——康乃尔酒店管理学院为对象,详细分析了这所著名酒店学院的核心资源和确保其长期保持领袖地位的持续竞争优势,并提出可供中国旅游教育界参考借鉴的措施建议

Exploring the characteristics of the market-driven firms and antecedents to sustained competitive advantage

During the last few decades, identifying and examining the characteristics of market-driven firms have been a dominant theme in strategic marketing research. It has been argued that market-driven firms are superior in their market sensing and customer linking capabilities, enabling market-driven firms to outperform their competitors. This paper reports the findings of a study that examines the role market-focused learning capability and marketing capability in innovation-based competitive strategy on sustainable competitive advantage. The findings indicate that entrepreneurship is an important factor in sustained competitive advantage (SCA) and while market-focused learning capability leads to higher degrees of innovation, marketing capability enables SCA. (C) 2003 Elsevier Inc. All rights reserved.

Organisational receptivity for change:combining context and capability to explain competitive advantage

This thesis explores efforts to conjoin organisational contexts and capabilities in explaining sustainable competitive advantage. Oliver (1997) argued organisations need to balance the need to conform to industry’s requirements to attain legitimization (e.g. DiMaggio & Powell, 1983), and the need for resource optimization (e.g. Barney, 1991). The author hypothesized that such balance can be viewed as movements along the homogeneity-heterogeneity continuum. An organisation in a homogenous industry possesses similar characteristics as its competitors, as opposed to a heterogeneous industry in which organisations within are differentiated and competitively positioned (Oliver, 1997). The movement is influenced by the dynamic environmental conditions that an organisation is experiencing. The author extended Oliver’s (1997) propositions of combining RBV’s focus on capabilities with institutional theory’s focus on organisational context, as well as redefining organisational receptivity towards change (ORC) factors from Butler and Allen’s (2008) findings. The authors contributed to the theoretical development of ORC theory to explain the attainment of sustainable competitive advantage. ORC adopts the assumptions from both institutional and RBV theories, where the receptivity factors include both organisational contexts and capabilities. The thesis employed a mixed method approach in which sequential qualitative quantitative studies were deployed to establish a robust, reliable, and valid ORC scale. The adoption of Hinkin’s (1995) three-phase scale development process was updated, thus items generated from interviews and literature reviews went through numerous exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) to achieve convergent, discriminant, and nomological validities. Samples in the first phase (semi structured interviews) were hotel owners and managers. In the second phase, samples were MBA students, and employees of private and public sectors. In the third phase, samples were hotel managers. The final ORC scale is a parsimonious second higher-order latent construct. The first-order constructs comprises four latent receptivity factors which are ideological vision (4 items), leading change (4 items), implementation capacity (4 items), and change orientation (7 items). Hypotheses testing revealed that high levels of perceived environmental uncertainty leads to high levels of receptivity factor. Furthermore, the study found a strong positive correlation between receptivity factors and competitive advantage, and between receptivity factors and organisation performance. Mediation analyses revealed that receptivity factors partially mediate the relationship between perceived environmental uncertainty, competitive advantage and organisational performance.

Building a competitive advantage through sustainable operations strategy

This paper addresses an important gap in sustainability and technology management studies: the strategies for sustainable operations. Based on analysis of cases from automotive, textile, chemical, and food processing industries, the authors discuss the responses companies take to environmental and social pressures when aiming at increasing profitability. Our findings show that adaptations of traditional operations strategy frameworks can be useful when developing and assessing sustainability strategy for operations. Lastly, we also offer definitions for ‘sustainable operations strategy’ and ‘sustainable technology’ as those are not yet established in the literature. We consider the contribution of this article to be linked to the development and evaluation of sustainable operations strategies, which will invariably include the choice and use of technologies.

Competitive advantages as a foundation for social advantage: The role of social enterprise in regional development

The belief that regions play a role in determining national economic development and that advantages are found at the local and regional level has been the focus of economic geography and development studies over the last 10 years. However, this issue has historically been dominated by economic perspectives, industrial firms, and public bodies. In recent years the social economy is starting to receive greater attention in creating regional advantage as well as ameliorating regional disadvantage. The social economy includes the impact of the third sector such as social enterprises. This paper proposes that understanding the role and function of social enterprise will enable a more nuanced understanding of the socio-economic aspects of regional development. Drawing upon Oliver’s (1997) framework for sustainable competitive advantage it is argued that this established management framework provides a valuable foundation for examining the organisational resources that social enterprise need to operate effectively, as well as the socio-economic resources they produce for regional communities.

Linking resource acquisition and development processes to resource-based advantage : bricolage and the resource-based view

We investigate the relationship between bricolage – an approach to a firm’s resource development – and the firm’s strategic resource position as depicted by the resource-based view (RBV). The RBV is concerned with the resource characteristics of firms that lead to sustainable competitive advantage. Alternatively, bricolage is a process of resource use and development characterised by using resources at hand, recombining resources and making do. Based on a sample of approximately 700 nascent and 700 young firms we find that higher levels of bricolage behaviour tend to lead to more advantageous strategic resource positions.

Linking resource acquisition and development processes to resource-based advantage : bricolage and the resource-based view

We investigate the relationship between bricolage – an approach to a firm’s resource development – and the firm’s strategic resource position as depicted by the resource-based view (RBV). The RBV is concerned with the resource characteristics of firms that lead to sustainable competitive advantage. Alternatively, bricolage is a process of resource use and development characterised by using resources at hand, recombining resources and making do. Based on a sample of 1,329 entrepreneurial start-ups we find that higher levels of bricolage behaviour tend to lead to more advantageous strategic resource positions.

Realising competitive advantage through HRM in New Zealand service industries

An emerging source of competitive advantage for service industries is the knowledge, skills and attitudes of their employees. Indeed, achievement of a 'service quality' culture, considered imperative for competitive advantage in service organisations, supposedly results from the use of best practice human resource management (HRM), and from a strategic approach to their implementation. This paper empirically explores the use of these dimensions of HRM as a source of competitive advantage. It finds high-performing service organisations actively engage best practices across the areas of recruitment and selection, training and development, communication and team working. Evidence of a strategic approach to the implementation of these practices is also found.

Building for competitive advantage in early stage start-ups : the role of entrepreneurial capabilities

Recent theoretical work has suggested “entrepreneurial capabilities” themselves may provide the resource foundations to deliver competitive advantage for entrepreneurial firms. This paper empirically examines how start-ups use such entrepreneurial capabilities to build competitive advantage. We investigate the effects of technological and marketing expertise, knowledge of market trends, flexibility and networking on the ability to obtain a cost leadership or differentiation advantage. Using a large dataset of 1,108 start-ups obtained after random sampling of over 30,193 households, we find that differentiation strategies benefit from most resource advantages. Cost leadership strategies, however, seem only to benefit from technological expertise and flexibility and not related to market-based advantages. By doing so, this study contributes to both entrepreneurship and RBV-theories by showing how entrepreneurial capabilities lead to competitive advantages in nascent and early-stage start-ups.