Gaining Sustainable Competitive Advantage

2018 ◽  
Vol 3 (1) ◽  
pp. 13-26
Author(s):  
Jorge Gomes ◽  
Mário Romão
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Customer Value ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
Academic Management

Competitive advantage (CA) arises from a firm's attributes that allow one firm to create better customer value than others. Organizations of all sectors of the economy believe that sustainability is a way to achieve a differential advantage. CA is recognised as being the major cause for explaining top organizational performance and is a fundamental goal of academic management studies. There are two main views about obtaining a stable competitive position in the marketplace; The theory of industrial organization, re-introduced by Porter in the 1980s arguing that competitive advantage is caused by environmental opportunities. The resource-based view, which argues that every company creates its own competencies and capabilities can result in competitive advantages. The article shows how the balanced scorecard (BSC) can assist organizations in obtaining sustainable competitive advantage (SCA). The BSC development is a response to the criticism of traditional forms of accounting assessment. Academics and practitioners recognize the benefits of adopting the BSC concept.

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2019 ◽  
pp. 1415-1428
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last 30 years. Competitive advantage is recognized as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage and about distinguishing competitive advantage from organizational performance. The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organizations.

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2018 ◽  
pp. 5714-5725 ◽  
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last thirty years. Competitive advantage is recognised as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage (Ray et al., 2004; Newbert, 2008) and about distinguishing competitive advantage from organisational performance (Powell, 2001). The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organisations.

How the Balanced Scorecard Helps Improve Business Performance and Gain Sustainable Competitive Advantage

2017 ◽  
Vol 7 (2) ◽  
pp. 44-61 ◽  
Author(s):  
Jorge Gomes ◽  
Mário Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Economic Performance ◽  
Balanced Scorecard ◽  
Business Performance ◽  
Sustainable Competitive Advantage ◽  
Research Focus ◽  
The Balanced Scorecard ◽  
Fundamental Goal

When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. So, why do some companies outperform others? This question has been intensely debated by strategic management researchers over the last decades. Several authors point out three broad explanations: (1) the mistakes made by some firms create advantages to others; (2) firms that exploit market power gain advantages over others; (3) firms with special capabilities gain advantages over others. Competitive advantage is recognised as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. More recently, the research focus goes to an expanded view of the concept, the sustainable competitive advantage (SCA), highlighting the idea that some forms of competitive advantage are very difficult to imitate and can therefore lead to persistent superior economic performance. This article aims to show how a Balanced Scorecard (BSC) can contribute to achieve SCA. It also collects a set of useful information related to several areas that have used this framework as a support to improve the performance of their organizations. Researchers, managers and practitioners recognize the virtues and potentialities of the BSC concept, although some critiques are also referenced.

scholarly journals Factors Affecting on Gaining a Sustainable Competitive Advantage for Sri Lankan Higher Educational Institutes

2018 ◽  
Vol 11 (4) ◽  
pp. 106
Author(s):  
Liyanachchi Mahesha Harshani De Silva ◽  
Charith D. Chitraranjan
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Core Competencies ◽  
Decision Makers ◽  
Sri Lankan ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Factors Affecting ◽  
Student Teacher Relationship ◽  
Good Reputation

Over the past few years, number of seats has grown significantly in Higher Education Institutes (HEI), thus it becomes prudent to look at the ways of improving decision making of the HEI. Thus, the aim of this study is to investigate factors affecting the sustainable competitive advantage. Since literature does not support strong underpinnings in this area, an exploratory and grounded theory-based study was designed to conduct this study. The main contribution of this research is that we propose factors to consider for an HEI to achieve sustainable competitive advantage. Our findings indicate that proper student-teacher relationship, maintaining good reputation, maintaining a high rank and good indexing’s, maintain good relationships with industries, student participation in competitions, accreditation from reputable institutions are the most significant factors affecting the sustainable competitive advantage (AA) within Sri Lankan HEIs. To remain competitive and obtain competitive advantages, HEI decision makers can try to increase organizational performance by managing each dimension of core competence, i.e. Market profile; Innovation and Core Competencies.

scholarly journals The Management Challenge of Sustaining Competitive Advantage through Innovation in Nigerian Business Environment

2019 ◽  
pp. 1-13
Author(s):  
Ann Ogbo ◽  
Jesse Ezeobi ◽  
Charles Ugbam ◽  
Obinna Okeke ◽  
Kalu Ebere Ume
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Customer Value ◽  
Organizational Innovation ◽  
Business Environment ◽  
Corporate Image ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Goods And Services ◽  
Intellectual Capacity

Organizational learning refers to the sum total of individual and collective learning through training programs, experience, experimentation and work interactions within the organization. Thus, sustainable competitive advantage is the ability to offer superior customer value on an enduring or consistent basis, a situation in which competitors are unable to easily imitate the firm's capacity for value creation. It is worrisome that most literary works have not clearly linked organizational learning with sustainable competitive advantages, as is the case with intellectual capacity (knowledge-based resources) using the resource-based view of the firm. A survey approach was the research design used with particular reference to the South East Zone of Nigeria. Findings revealed that organizational innovation leads to sustained competitive advantage. The Z-statistic value with the corresponding probability value confirms that the organization to a large extent draws its competitive strength jointly from the following factors: creation of new products, changes in way of production, changes in architecture of production, improved ways of sourcing supplies, opening new market opportunities, providing goods and services that others are not yet offering or are not able to copy, being able to offer products of comparable quality at a lower price, maintaining a configuration of resources and capabilities that cannot easily be imitated by competitors, being able to attract customers from competitors due to a positive corporate image and encouraging employees to improve their personal skills. The results total Z-scores in absolute term shows that the listed factors pose challenges to the organization in the process of achieving sustainable competitive advantage through innovation.  For further justification, we proceed to their joint significant analysis adopting the one sample Z-test. The proxies employed in this study for the measurement of sustainability agreed with resource-based view strategies on sustainability of competitive advantage in an unstable business environment.

Sustainable Competitive Advantage in E-Commerce and the Role of the Enterprise System

2013 ◽  
pp. 303-319
Author(s):  
Petra Schubert ◽  
Susan P. Williams ◽  
Ralf Woelfle
Keyword(s):  
Competitive Advantage ◽  
Research Data ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Systems Research ◽  
Information Systems Research ◽  
Sustainable Competitive Advantages

Developing and sustaining a competitive advantage from the use of information technology is a topic of concern for information systems research. Mata et al. (1995) present a model that is founded on the resource-based view of the firm. The model is used to discuss factors that lead to competitive advantage in e-commerce companies. This paper explores factors that enable sustainable competitive advantages in B2C retailing. The analysis is based on a single in-depth case study of an Internet pioneer company (LeShop), which was observed by the authors since its inception more than 10 years ago. The research data stems from a series of interviews with managers at LeShop as well as two case studies about the company from two different points in time (2000 and 2009). LeShop is an online pioneer, which began selling groceries on the Internet in Switzerland in April 1998. After a turbulent few years, LeShop is now one of the few successful e-commerce suppliers in the supermarket segment worldwide. The discussion includes an analysis of further critical resources of the company from a resource-based view.

scholarly journals The resource-based view and marketing: The role of market-based assets in gaining competitive advantage

2001 ◽  
Vol 27 (6) ◽  
pp. 777-802 ◽  
Author(s):  
Rajendra K. Srivastava ◽  
Liam Fahey ◽  
H. Kurt Christensen
Keyword(s):  
Competitive Advantage ◽  
Customer Value ◽  
Business Processes ◽  
Shareholder Value ◽  
Theory Development ◽  
Practice Management ◽  
Competitive Advantages ◽  
Research Directions ◽  
Resource Based View

This article posits a framework that shows how market-based assets and capabilities are leveraged via market-facing or core business processes to deliver superior customer value and competitive advantages. These value elements and competitive advantages can be leveraged to result in superior corporate performance and shareholder value and reinvested to nurture market-based assets and capabilities in the future. The article also illustrates how resource-based view (RBV) and marketing considerations in the context of generating and sustaining customer value can refine and extend each other’s traditional frames of analysis. Finally, the article posits a set of research directions designed to enable scholars to further advance the integration of RBV and marketing from both theory-driven practice management as well as a problem-driven theory development perspectives.

scholarly journals Performance evaluation of an insurance company using an integrated Balanced Scorecard (BSC) and Best-Worst Method (BWM)

2020 ◽  
Vol 4 (1) ◽  
pp. 33-50
Author(s):  
Rishi Dwivedi ◽  
◽  
Kanika Prasad ◽  
Nabankur Mandal ◽  
Shweta Singh ◽  
...  
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Measurement Model ◽  
Business Environment ◽  
Decision Makers ◽  
Insurance Company ◽  
Competitive Advantages ◽  
The Balanced Scorecard ◽  
First Time ◽  
Best Worst Method

Recent economy and financial business environment is undergoing a quick and accelerating revolution and paradigm shift, resulting in growing uncertainty and complexity. Therefore, the need for an all-inclusive and far-reaching performance measurement model is universally felt as it can provide management-oriented information and act as a supporting tool in developing, inspecting, and interpreting policy-making strategies of an enterprise to achieve competitive advantages. Hence, this paper proposes an application of the balanced scorecard (BSC) model in an insurance organization for coordinating and regulating its corporate vision, mission, and strategy with organizational performance through the interrelation of different layers of business perspectives. In the next stage, a framework to unify both BSC and best-worst method (BWM) models is implemented for the very first time in the insurance domain to assess its performance over two-time periods. The integrated BSC-BWM model can help managers and decision-makers to figure out and interpret competing strength of the said enterprise and consecutively expedite inefficient and compelling decision making. Nevertheless, this integrated model is embraced and selected for a certain categorical business and there is enough future scope for its application to distinct industries.

Implementasi Resource Based Strategy Dalam Mencapai Sustainable Competitive Advantage

2020 ◽  
Vol 22 (1) ◽  
pp. 121-130
Author(s):  
Firdaus Aditya Rizqi ◽  
Wahyu Nugroho
Keyword(s):  
Competitive Advantage ◽  
Cement Industry ◽  
Infrastructure Development ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Property Development ◽  
Resource Based View ◽  
Intangible Resources ◽  
Competitive Disadvantage ◽  
Sustainable Competitive Advantages

Abstract: In supporting infrastructure development and housing needs, cement is one of the more widely used strategic commodities. Improvement of infrastructure and property development in Indonesia is caused by an increase in good economic growth in Indonesia. This is the main attraction for both domestic and foreign investors to further enliven the cement industry in Indonesia. Competition occurs between old players and new players who have plans and are building new factories. In addition to PT X in Indonesia there are also 6 (six) other cement companies and 8 (eight) new companies that will invest in the same field which causes competition among the cement industry players to increase. Facing this development, every company is required to be able to develop and evaluate competitiveness by utilizing existing resources to maintain a sustainable competitive advantage in industrial competition. One way to analyze a company's sustainable competitive advantage is to conduct a resource-based view analysis using the VRIO framework. The purpose of conducting a resource based view analysis is to find out whether resources are owned and managed, including in competitive disadvantage, competitive parity, temporary competitive advantage or sustainable competitive advantage. Based on the results of data analysis and discussion of the results of the study, it can be concluded that the resource-based strategy in supporting the achievement of sustainable competitive advantages in PT X is stated to have been proven. A resource-based strategy that includes financial, physical, organizational, technological, human, innovation and reputation resources described in the conclusion of this study is the result that PT X's resources are an important factor in sustainable competitive advantage.   Keywords: resources based strategy, sustainable competitive advantage, intangible resources, tangible resources, VRIO framework

Sustainable competitive advantage in Construction: Study of Central Region of Parana

2015 ◽  
Vol 8 (2) ◽  
pp. 212 ◽  
Author(s):  
Mário Luis Brunetti ◽  
Gylmar Teixeira ◽  
Marcos De Castro ◽  
Luiz Fernando Lara
Keyword(s):  
Competitive Advantage ◽  
Central Region ◽  
Market Competition ◽  
Research Approach ◽  
Western Region ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Track Record ◽  
Potential Sources

In the fierce market competition, the companies need different strategies that give them a competitive advantage that may result from resources controlled by organization. In this way, search linked to the resource based view (RBV), well founded by Penrose (1959), Wernerfelt (1984) and Barney (1991), allow identifying those resources able to generate competitive advantage. This article seeks to identify the sources of sustainable competitive advantage in the constructing companies in the center-western region of Parana State, through a qualitative research approach we investigated three companies in this sector which are located in the central region of Parana State. For data analysis, we used the VRIO model developed by Barney (2007). In this model, some resources stand out as potential generators of competitive advantages when they are valuable, rare, inimitable and organizational within the context in which they are introduced. The results have shown that companies which operate in this line of business are dependent primarily of ten essential resources and two are introduced as potential sources of sustainable competitive advantage: 1) Experience and track record in the market; 2) Structure, organization and planning.

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