scholarly journals Designing a Competitive Advantage Model Through Dynamic Capabilities and Differentiation Approach for Iranian Knowledge-based Companies

2020 ◽  
Vol 10 (2) ◽  
pp. 52
Author(s):  
Alireza Abdolhosseini Khaligh ◽  
Mohammad Haghighi ◽  
Mohsen Nazari ◽  
Hamid Khodadad Hosseini

The worldwide competitive struggles in high-tech environment such as knowledge-based companies have featured the necessity to infer how competitive advantage is gained. Dynamic capabilities as the origin of competitive advantage emphasize the changing character of the environment and nature of future competition, acceleration in innovation growth, and the main role of strategic management in adaption, integration, and reconfiguration of organizational skills, resources, and working competences toward shifting environment. The recent inquiry is based on an interpretive paradigm and an inductive approach. The qualitative part of the research is conducted with exploratory purpose through grounded theory strategy. In quantitative part of study, it is continued with explanatory and descriptive purposes through survey and correlational research strategies. The probe concepts and variables are analyzed in 30 top knowledge-based companies located at growth centers of 6 high-ranking universities of Iran working on electronics and informatics field. The results of the research indicate that achieving knowledge-centricity main phenomenon through dynamic capabilities requires presence of value creation on the basis of resource orientation together with competences. The knowledge-based companies can reach the summit and sustainable success in the knowledge-centricity main phenomenon when they consider two kinds of specialized paths related to the differentiation strategies and knowledge-based strategies. Along with these two paths, contextual factors of environmental cognition, knowledge management and knowledge approaches, and the intervening conditions of branding and brand management, and strategic agility are identified that have a positive and significant effect on both strategies. The final designed model explicates how to gain competitive advantage for the studied companies through dynamic capabilities with regard to the differentiation and the knowledge-based approaches.

2020 ◽  
Author(s):  
Alireza Abdolhosseini Khaligh ◽  
Mohammad Haghighi ◽  
Mohsen Nazari ◽  
Hamid Khodadad Hosseini

Abstract The competitive struggles in high-tech environment have featured the necessity to infer how competitive advantage is gained. Dynamic capabilities emphasize the nature of future competition, acceleration in innovation growth, and the role of strategic management in adaption, integration, and reconfiguration of organizational skills, resources, and competences toward shifting environment. This inquiry is based on an inductive approach. The qualitative research is primarily started with exploratory purpose through grounded theory strategy. Then, it is continued with quantitative type of study, explanatory and descriptive purposes through survey and correlational research strategies. The probe concepts and variables are analyzed in 30 top knowledge-based companies of Iran working on electronics and informatics field. The results indicate that achieving knowledge-centricity main phenomenon through dynamic capabilities requires presence of value creation on the basis of resource orientation together with competences. The knowledge-based companies can reach the summit and sustainable success in the knowledge-centricity main phenomenon when they consider two specialized paths related to the differentiation and knowledge-based strategies. Environmental cognition, knowledge management, knowledge approaches, branding and brand management, and strategic agility are identified with a positive and significant effect on both strategies.


Management ◽  
2020 ◽  
Author(s):  
Pek-Hooi Soh

Management scholars have long argued that firm performance difference can be driven by strategic resources inside a firm. Most resources in organizations are considered as input factors required to perform a firm’s business functions and operations efficiently. There are other resources such as brand capital and organizational knowledge that are produced from the usage of inputs. Resources are said to be strategically important when their use enables the firm to create economic rents, resulting in the firm’s competitive advantage that no current and potential competitors can achieve. Examples of strategic resources are managerial skills, specialized knowledge, and organizational routines such as human resource and supply chain practices. Strategic resources arising from within firms and across partnering firms can also be uniquely accessed, combined, and utilized in order to drive firm performance and growth. Most empirical studies have focused on understanding how firms develop and transform rent-generating resources into a form of firm-specific assets that enable them to exploit new opportunities and achieve sustainable competitive advantage. Research inquiries on strategic resources have also led to the development of several important conceptual perspectives, such as the resource-based view, dynamic capabilities, core competence, and the knowledge-based view. The respective conceptualization of these perspectives has sparked many debates and critiques among the perspectives about the assumptions of resources and associated value and the extent to which different perspectives contribute to the usefulness of explaining persistent firm performance difference and prescribing pragmatic approaches to management.


Author(s):  
Noorliza Karia ◽  
H.M. Emrul Kays

Logistics service is more complex and knowledge-based in the fourth industrial revolution era. Given this significance, this chapter emphasizes the logistics industry and its specific dynamic capabilities, and measures generating the Industry 4.0 by extending the resource-based logistics (RBL) of Noorliza (2011). The chapter has three parts: Logistics in the fourth industrial revolution, RBL theory, and its impacts and Logistics 4.0 models in the fast-moving environment. This explains how logisticians or logistics firms obtain competitive advantages in the fourth industrial revolution era.


2011 ◽  
pp. 1191-1199
Author(s):  
Pei-Di Shen ◽  
Chia-Wen Tsai

Knowledge is a limitless resource in the knowledge-based economy; therefore, organizations should learn, store, transfer and apply knowledge to add value or gain competitive advantage (Sveiby, 1997). Knowledge management (KM) refers to identifying and leveraging the collective knowledge within the organization for competitive advantage (von Krogh, 1998). However, it is usually discussed and implemented in high-tech industries (e.g., TI, TSMC and Winbond) and the software industry (e.g., Microsoft and Oracle). In Taiwan, the upstream firms or suppliers of the electronics industry (e.g., Winbond and UMC) implement KM in their organizations. As well as the suppliers, the downstream firms or manufacturers (e.g., Quanta and ASUS) also put KM into practice. However, in the intermediaries or distributors, only a meager number of firms really implement KM in their companies. Therefore, we have neglected whether KM is still suitable to implement in the distribution industry. The IC distributors in Taiwan evolved from partnerships or intra-family enterprises into the overall arrangement in Asia, with output value in 2004 beyond $38.7 billion (United States dollars). IC distribution industry outsiders may consider that distributors just transact business, but don’t have their own products, even though the scale of IC distributors has expanded. So an inaccurate notion exists that it isn’t necessary to innovate or put KM into practice therein. In fact, IC distributors have to face not only the rapidly changing upstream firms, but also the variable requirements of downstream customers. Therefore, distributors have to adapt and learn even faster than their suppliers and customers to face the drastically changing and intensely competitive environment.


2014 ◽  
Vol 13 (1) ◽  
pp. 22-33
Author(s):  
Tomas Sparano Martins ◽  
Heitor Takashi Kato ◽  
Roberta Da Rocha Rosa Martins ◽  
Eduardo Damião Da Silva

The literature on dynamic capabilities is confusing, full of overlapping definitions, and contradictions. The theoretical and practical importance of developing and applying dynamic capabilities to sustain competitive advantage in complex external environment is central in studies about strategy nowadays. In this paper, we offer a definition of dynamic capabilities under two aspects: first, it refers to the shifting character of the environment; second, it emphasizes the key role of strategic management in appropriately adapting, integrating, and re-configuring internal and external organizational skills, resources, and functional competences towards a changing environment. This paper aims to clarify the concept of dynamic capabilities, propose an analytical framework that connects this “new” concept to a well known and recognized generic strategic model (Miles and Snow, 1978) and to the concept of sustainable competitive advantage and evolutionary fit. DOI:10.5585/riae.v13i1.1934


Author(s):  
Pei-Di Shen ◽  
Chia-Wen Tsai

Knowledge is a limitless resource in the knowledge-based economy; therefore, organizations should learn, store, transfer and apply knowledge to add value or gain competitive advantage (Sveiby, 1997). Knowledge management (KM) refers to identifying and leveraging the collective knowledge within the organization for competitive advantage (von Krogh, 1998). However, it is usually discussed and implemented in high-tech industries (e.g., TI, TSMC and Winbond) and the software industry (e.g., Microsoft and Oracle). In Taiwan, the upstream firms or suppliers of the electronics industry (e.g., Winbond and UMC) implement KM in their organizations. As well as the suppliers, the downstream firms or manufacturers (e.g., Quanta and ASUS) also put KM into practice. However, in the intermediaries or distributors, only a meager number of firms really implement KM in their companies. Therefore, we have neglected whether KM is still suitable to implement in the distribution industry. The IC distributors in Taiwan evolved from partnerships or intra-family enterprises into the overall arrangement in Asia, with output value in 2004 beyond $38.7 billion (United States dollars). IC distribution industry outsiders may consider that distributors just transact business, but don’t have their own products, even though the scale of IC distributors has expanded. So an inaccurate notion exists that it isn’t necessary to innovate or put KM into practice therein. In fact, IC distributors have to face not only the rapidly changing upstream firms, but also the variable requirements of downstream customers. Therefore, distributors have to adapt and learn even faster than their suppliers and customers to face the drastically changing and intensely competitive environment.


Author(s):  
Clyde W. Holsapple ◽  
Jae-Young Oh

This chapter investigates the dynamic capabilities of market creators and followers by studying the nature of the environments they face. The turbulent and rapidly changing business environment forces a firm seeking to sustain its competitiveness to choose whether to enter an emerging market or create a new market. Both directions can lead firms to success in a market but only when they cultivate appropriate dynamic capabilities. In the mobile industry, for instance, the different approaches for success of Apple, market creator of the smart phone, and Samsung, a successful follower in that emerging market, provide an example for considering and understanding such capabilities. In this study, the authors examine ways in which several theories attempt to explain the success of Apple and Samsung. They introduce the idea of classifying dynamic capabilities into reactive and proactive types, each of which can lead to success. The classification is enriched into a knowledge-based framework by applying the knowledge chain theory. The framework also accommodates concepts from other theories that are reviewed. This study makes contributions to understanding knowledge-based competitiveness: (1) the classification of dynamic capabilities into “proactive” and “reactive” gives a unified understanding of how both a pioneer and followers can succeed in a market; (2) the framework delves into mechanisms of how competitive advantage from the two kinds of dynamic capabilities is produced through the lens of the knowledge chain theory; (3) the framework can serve as an action guide in coping with turbulent business situations.


2018 ◽  
pp. 366-385
Author(s):  
Clyde W. Holsapple ◽  
Jae-Young Oh

This chapter investigates the dynamic capabilities of market creators and followers by studying the nature of the environments they face. The turbulent and rapidly changing business environment forces a firm seeking to sustain its competitiveness to choose whether to enter an emerging market or create a new market. Both directions can lead firms to success in a market but only when they cultivate appropriate dynamic capabilities. In the mobile industry, for instance, the different approaches for success of Apple, market creator of the smart phone, and Samsung, a successful follower in that emerging market, provide an example for considering and understanding such capabilities. In this study, the authors examine ways in which several theories attempt to explain the success of Apple and Samsung. They introduce the idea of classifying dynamic capabilities into reactive and proactive types, each of which can lead to success. The classification is enriched into a knowledge-based framework by applying the knowledge chain theory. The framework also accommodates concepts from other theories that are reviewed. This study makes contributions to understanding knowledge-based competitiveness: (1) the classification of dynamic capabilities into “proactive” and “reactive” gives a unified understanding of how both a pioneer and followers can succeed in a market; (2) the framework delves into mechanisms of how competitive advantage from the two kinds of dynamic capabilities is produced through the lens of the knowledge chain theory; (3) the framework can serve as an action guide in coping with turbulent business situations.


2021 ◽  
Vol 12 (2) ◽  
pp. 43-47
Author(s):  
Norhuda Salim ◽  
◽  
Mohd Nizam Ab Rahman ◽  
Dzuraidah Abd. Wahab

Achieving and sustaining competitive advantage is a goal among firms, but it is increasingly challenging in a rapid changing and sophisticated environment. Most of the environmental management undertaken by firms in developing countries are not able to increase the competitive advantage of the product. Hence, this study investigates proactive capabilities that need to be developed in a dynamic environment where it involves green product innovation, environmental proactivity, alliance pro-activeness, and knowledge-based dynamic capabilities that impact on competitive advantage performance. This study involved a survey of 157 manufacturing firms with ISO 14001 certification throughout Malaysia. By implementing structural equation modelling approach, the results provided evidence of positive and significant direct effects of green product innovation and environmental pro-activity on firm’s competitive advantage. The relationship of alliance pro-activeness was fully mediated by the presence of knowledge-based dynamic capabilities as a condition to survive and prosper in a competitive market.


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