The Competitive Advantage of Business Service Firms: A Matched Pairs Analysis of the Relationship Between Generic Strategy and Performance

1993 ◽  
Vol 13 (1) ◽  
pp. 40-64 ◽  
Author(s):  
P. N. O'Farrell ◽  
D. M. Kitchens ◽  
L. A. R. Moffat
Author(s):  
Michael P. Leimbach

The importance of learning transfer in ensuring that learning contributes to an organization's competitive advantage has been undermined in organizational practice. There are two major reasons for this: 1) few studies directly explore the relationship between transfer and performance improvement, and 2) most existing transfer models are too complex for practitioners to implement. The purpose of this chapter is to explore the link between learning transfer activities and performance outcomes, and to create a framework for implementing an effective learning transfer solution. A targeted literature review meta-analysis was used to explore the performance impact of training vs. training plus transfer activities. The authors compute “difference scores” representing the percentage of improvement from the transfer activities over training alone. Activities are categorized into a framework of eleven critical learning transfer actions. They then implement the elements of the Learning Transfer Framework in three demonstration projects. By incorporating findings from the literature review, meta-analysis, and the demonstration projects, the authors propose a new transfer framework that is effective and easy to implement. Implications and directions for future researchers are advanced.


2017 ◽  
Vol 8 (2) ◽  
pp. 73 ◽  
Author(s):  
Hui Lei ◽  
Phong Ba Le ◽  
Hanh Thi Hong Nguyen

The paper aims to clarify the influences of collaborative culture and specific aspects of organizational learning on competitive advantage. Structural equations modeling (SEM) is applied to test degree of influence of each variable has on each other through using data collected from 298 participants at 150 large manufacturing and service firms. The result shows that organizational learning act as mediating roles in the relationship between collaborative culture and competitive advantage. Our results indicate that collaborative culture practices will yield significant effects to competitive advantage directly or indirectly through improving specifics aspects of organizational learning. The findings of this study provide a theoretical basis, which can be used to analyze relationships between collaborative culture, specifics aspects of organizational learning and competitive advantage. From a practical perspective, the study brings more deeply understanding for CEOs/managers about the necessary factors to encourage and promote firm’s competitive advantage.


Author(s):  
Paul G. Kimiti ◽  
Stephen M. A. Muathe ◽  
Elishiba M. Murigi

Purpose of the study: Cost leadership strategy is driven by economies of scale, economies of scope, and operational efficiency is a remedy to a performance where firms are facing high costs. This study sought to investigate the influence of cost leadership strategy on the performance of milk processing firms in Kenya through the lens of competitive advantage as a mediator. Methodology: The study adopted descriptive and explanatory non-experimental research designs. It was a census of all 29 milk processing firms registered with Kenya Dairy Board as of June 2019. Sampling was done using proportionate stratified random sampling technique and data was collected using self-administered semi-structured questionnaires. The analysis was done using means, standard deviations, and regression. Main Findings: The findings showed that a cost leadership strategy had a positive and significant effect on the performance of milk processing firms in Kenya with a competitive advantage partially mediating the relationship. The constituent measures of cost leadership strategy namely economies of scale, economies of scope, and operational efficiency accounted for 40.1% of the variation in firm performance. Applications of this study: This study provides suggestions for firms to manage costs and therefore improve performance. This is by increasing the size of operations, expanding into related business areas, and improving operational processes. Novelty/originality of this study: The study examines the influence of cost leadership strategy in a new context of milk processing firms in Kenya. It also incorporates a competitive advantage as a significant variable affecting the relationship between costs and performance.  


Author(s):  
Javier Amores Salvadó ◽  
José Emilio Navas López ◽  
Gregorio Martín de Castro

The proposal below provides a special emphasis on the relationship between businesses and natural environment. It is argued that the inclusion of environmental criteria to business activities promotes the creation of new core competencies, offering a creative and innovative perspective to the organization that can lead to the achievement of sustainable competitive advantages. More specifically, we analyze both the existence of a direct relationship between Environmental Innovation and Firm Performance and the existence of an indirect relationship between the two, which highlights the mediating role of the kind of competitive advantage generated. It also provides an innovative approach, as it explains the Environmental Innovation from the literature on Social Innovation, considering Environmental Innovation as an expression of Social Innovation through the incorporation of ethical arguments to products, processes and organizational modes of the company. The main contributions of this work can be summarized as follows: (1) It explains the nature of Environmental Innovation through the Social Innovation literature, which allows consideration of some key aspects of administrative and technological innovations that have not been taken into account the academic literature. (2) The different types of environmental innovations are analyzed as a necessary step to understand the strategic options in the environmental field. (3) Environmental Innovation is related to business performance. The practical implications of the relationship between environmental innovation and performance are of great importance, since it directly influence the type of environmental strategy chosen, allowing the company to choose from innovative strategies (based on pollution prevention) or more conservative strategies (emissions control).


1993 ◽  
Vol 25 (11) ◽  
pp. 1627-1648 ◽  
Author(s):  
P N O'Farrell

In this paper a comparative analysis of the competitiveness and performance of business-service companies in two peripheral regions, Nova Scotia and Scotland, is presented. Several dimensions of performance are investigated for four industries: market research, management consultancy, advertising, and graphic design. Value added per person is one third higher in Scotland compared with Nova Scotia, and Nova Scotian offices derive a much higher proportion of their turnover from government and public-sector contracts. In general, however, a very consistent picture emerges of the relative position of business services in the two regions. Possible demand-side and supply-side causes of such differences are reviewed and potential policy responses considered.


2015 ◽  
Vol 26 (4) ◽  
pp. 548-564 ◽  
Author(s):  
Nelson Oly Ndubisi ◽  
Celine Marie Capel ◽  
Gibson C Ndubisi

Purpose – The purpose of this paper is to investigate the moderating role of structural autonomy in the relationship between innovation strategy and performance of international technology services ventures (ITVs). Design/methodology/approach – Data were collected from 200 ITVs serving markets outside their country of origin. Instrumentation followed standard procedure by adapting validated and parsimonious items from existing literature. Factor and hierarchical multiple regression analyses were applied to examine the hypothesised relationships. Findings – The results indicate a significant relationship between innovation strategy (namely service products innovation, process innovation and administrative innovation) and performance of ITVs. Structural autonomy moderates the relationship between process innovation, administrative innovation and performance. There is no moderating effect of autonomy in the association of service products innovation and performance. Research limitations/implications – The study corroborates the argument that service firms have more to gain by granting autonomy. In the context of ITVs, such gains are directly linked to performance through enhanced innovation in service products, processes and administration. It adds to the growing suggestions and rebuttals in the literature of a trade-off between innovation and communication; and between exploration of new knowledge and exploitation of existing knowledge in organisations when there is autonomy. Practical implications – Management can increase innovation and performance by granting greater autonomy to employees. Managers who are concerned that autonomy’s capacity to increase innovation capability may come at the expense of intra-organisational communication can be assured that intra-organisation communications can exist in the face of autonomy, and there is no real trade-off after all. Similarly, there is no basis for any concern for potential trade-off between exploration of new knowledge and exploitation of existing knowledge in organisations. Originality/value – Research suggests that autonomy of subsidiaries, units, groups or individuals encourages innovation, and that innovation strategy can enhance organisational performance. However, there is a counter-argument that same autonomy potentially hinders exploitation and performance of innovations. The study sheds more light on these anecdotal views based on data from ITVs.


2021 ◽  
Vol 12 (1) ◽  
pp. 198-221
Author(s):  
Vida Skudiene ◽  
Yuhua McCorkle ◽  
Denny McCorkle ◽  
Daniil Blagoveščenskij

While emerging markets have become an opportunity for companies in the less populated and saturated markets to expand their business, they also impose challenges for foreign partners’ competitive behavior. To offer the value that would be competitive in emerging markets, companies need to improve the quality of their relationship with business partners. Relationship quality may enhance the probability of continued interchange between companies and their stakeholders, leading to increased attractiveness for the emerging markets’ economy. This research explores antecedents (communication and relationship longevity) of relationship quality with stakeholders (suppliers, customers, and employees) and how the relationship quality with three stakeholders impacts the company’s performance risk and competitive advantage in the Lithuanian hotel, restaurant, and café market. The findings suggest that communication and relationship longevity have a positive effect on relationship quality with all three stakeholders. A higher level of relationship quality with stakeholders has a more positive effect on competitive advantage and a more significant negative effect on performance risk. The study expands the understanding of relationship quality antecedents (communication and relationship longevity) and relationship quality with customers, suppliers, and employees in terms of competitive advantage and performance risk in the less populated and saturated hotel, restaurant, and café market seeking expansion to emerging markets.


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