The Competitive Advantage of Nations 25 years – opening up new perspectives on competitiveness

2015 ◽  
Vol 25 (5) ◽  
pp. 471-481 ◽  
Author(s):  
Örjan Sölvell
Keyword(s):  
Competitive Advantage ◽  
Competitive Advantages ◽  
Content Type ◽  
Long Run ◽  
Diamond Model ◽  
New Perspective ◽  
New Research ◽  
Sustainable Competitive Advantages ◽  
Opening Up

Purpose – The purpose of this study is to analyze how The Competitive Advantage of Nations project led by Professor Michael E. Porter has opened up new perspectives on competitiveness of nations and firms for scholars, practitioners and policymakers. With the publication of The Competitive Advantage of Nations (CAON) book in 1990, Professor Michael E. Porter opened up a whole new perspective on competitiveness and clusters, including both new research avenues and new perspectives for practitioners and politicians. By questioning the traditional, more static and macroeconomic, views on competitiveness, he opened up for a new model of microeconomic drivers of long-run firm competitiveness. The new conceptual model, the Diamond model, pointed to the importance of healthy rivalry and dynamic clusters, in the proximate firm environment, as central to our understanding of how firms build sustainable competitive advantages in global markets. Design/methodology/approach – Literature review and conceptual. Findings – To distinguish between short-term, more static, and long-term, more dynamic competitiveness of firms, and the competitiveness of nations and regions, the paper proposes a conceptualization into three interrelated concepts: competitiveness and innovativeness of firms, and attractiveness of nations and regions. Originality/value – This paper summarizes 40 years of Professor Porter’s seminal research with a focus on the CAON project that began with the 1990 book on The Competitive Advantage of Nations. The paper proposes three interrelated concepts to cover issues of competitiveness: competitiveness (firm’s static advantages), innovativeness (firm’s dynamic advantages) and attractiveness (national/regional advantages).

Competitive advantage through innovation: the case of Nespresso

2016 ◽  
Vol 19 (1) ◽  
pp. 133-148 ◽  
Author(s):  
Alexander Brem ◽  
Maximilian Maier ◽  
Christine Wimschneider
Keyword(s):  
Competitive Advantage ◽  
Secondary Data ◽  
Linear Process ◽  
Lessons Learned ◽  
Competitive Advantages ◽  
Content Type ◽  
Market Situation ◽  
Long Time ◽  
A Company

Purpose – The purpose of this paper is to describe how Nespresso achieved competitive advantage through innovation by changing the rules of the game in its industry. Design/methodology/approach – Nespresso was analyzed based on public available secondary data, in combination with related academic concepts on innovation and competitive advantage. Findings – The company succeeded by the thorough application of a strategy that, through perfect alignment, allowed the company to reach a unique market position. However, as described in the case, it took a relatively long time and the company came close to failure several times. Before the current situation of the company, it remains challenging in the future as well. Hence, the Nespresso story provides interesting space for discussion and learning about what innovation is, how innovation emerges, and under which circumstances innovation can serve as a source for competitive advantage. Research limitations/implications – Especially given the current market situation, the case offers different starting points for discussion about innovation and long-term company success. Practical implications – Especially before the current market situation, the case offers different starting points for discussion about innovation and the success of a company on the long term. The case is designed to give practitioners a better understanding on what an innovation as, and how competitive advantages can be linked to innovation. Originality/value – This case of Nespresso is a unique combination of the concepts of innovation and competitive advantage. It serves as an example of an innovation, which was not successful from the scratch, but evolved over time and is still developing. As many innovations went through such a non-linear process, this case offers interesting lessons learned for academics as well as for practitioners.

The power of impossible

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexandre Asselineau ◽  
Gilles Grolleau
Keyword(s):  
Competitive Advantage ◽  
Mental Model ◽  
Design Methodology ◽  
Competitive Advantages ◽  
Content Type ◽  
Inappropriate Use ◽  
The World ◽  
Sustainable Competitive Advantages ◽  
Practical Implications ◽  
A Current

Purpose Labeling something as “impossible” can be performative and deprive businesses from promising ideas, by activating limiting mental models and self-fulfilling prophecies. Adopting an “everything may be(come) possible” thinking as the default option can lead businesses to discover unexpected and valuable directions and make the world a better place. This paper aims to propose practical insights to harness the power of “impossible” thinking such as considering impossibility as a current and temporary state, adopting an unconventional mindset and redirecting the reflection on what is needed to make the idea possible. Falling in love with any impossible target is obviously not without downsides. Design/methodology/approach This paper discusses conceptually how adopting an impossible thinking approach can help business to discover unexpected and valuable directions. Findings The authors caution managers on the inappropriate use of the “impossible” label that can be performative, activate a limiting mental model, lead to a self-fulfilling prophecy and deprive businesses from promising ideas. This paper proposes ways by which the power of impossible thinking can be harnessed to make a difference. Research limitations/implications Discarding impossible ideas seems perfectly justified from a logical or cultural viewpoint while constituting simultaneously a bad decision from a business viewpoint. The generalization of authors’ insight must be undertaken with caution, given that harnessing the power of impossible does not mean to fall in love with any impossible idea. Practical implications Learning to not neglect seemingly impossible options and sometimes to reveal them can lead to sustainable competitive advantages. Social implications While generating a competitive advantage for the concerned companies, implementing impossible ideas can also contribute to make the world a better place. Originality/value The authors identify some mechanisms that can make impossible thinking beneficial and profitable for companies. These insights can help managers to nurture an environment that facilitates the emergence of pathbreaking advances.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

2017 ◽  
Vol 24 (5) ◽  
pp. 1309-1336 ◽  
Author(s):  
Sarang Joshi ◽  
Manoj Kharat ◽  
Rakesh Raut ◽  
Sachin Kamble ◽  
Sheetal Kamble
Keyword(s):  
Structural Equation ◽  
Success Factors ◽  
Structural Model ◽  
Manufacturing Firms ◽  
Supplier Development ◽  
Competitive Advantages ◽  
Content Type ◽  
The Relationship ◽  
Relationship Improvement

Purpose The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices. Design/methodology/approach The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP. Findings The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant. Research limitations/implications The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms. Practical implications This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement. Originality/value The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

Long run apartment price dynamics in Swedish and German cities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sviatlana Engerstam
Keyword(s):  
Banking Sector ◽  
Cointegration Analysis ◽  
Price Dynamics ◽  
Long Term Effects ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Price Elasticities ◽  
Long Run ◽  
German Cities

PurposeThis study examines the long term effects of macroeconomic fundamentals on apartment price dynamics in major metropolitan areas in Sweden and Germany.Design/methodology/approachThe main approach is panel cointegration analysis that allows to overcome certain data restrictions such as spatial heterogeneity, cross-sectional dependence, and non-stationary, but cointegrated data. The Swedish dataset includes three cities over a period of 23 years, while the German dataset includes seven cities for 29 years. Analysis of apartment price dynamics include population, disposable income, mortgage interest rate, and apartment stock as underlying macroeconomic variables in the model.FindingsThe empirical results indicate that apartment prices react more strongly on changes in fundamental factors in major Swedish cities than in German ones despite quite similar development of these macroeconomic variables in the long run in both countries. On one hand, overreactions in apartment price dynamics might be considered as the evidence of the price bubble building in Sweden. On the other hand, these two countries differ in institutional arrangements of the housing markets, and these differences might contribute to the size of apartment price elasticities from changes in fundamentals. These arrangements include various banking sector policies, such as mortgage financing and valuation approaches, as well as different government regulations of the housing market as, for example, rent control.Originality/valueIn distinction to the previous studies carried out on Swedish and German data for single-family houses, this study focuses on the apartment segment of the market and examines apartment price elasticities from a long term perspective. In addition, the results from this study highlight the differences between the two countries at the city level in an integrated long run equilibrium framework.

A multifractal detrended fluctuation analysis of housing market: a role of financial crises in developed economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Ali Raza ◽  
Nida Shah ◽  
Muhammad Tahir Suleman ◽  
Md Al Mamun
Keyword(s):  
Financial Crisis ◽  
Housing Market ◽  
Market Efficiency ◽  
House Price ◽  
Fluctuation Analysis ◽  
Content Type ◽  
Multifractal Detrended Fluctuation Analysis ◽  
Long Run ◽  
Before And After

Purpose This study aims to examine the house price fluctuations in G7 countries by using the multifractal detrended fluctuation analysis (MF-DFA) for the years 1970–2019. The study examined the market efficiency between the short-term and long-term in the full sample period, before and after the global financial crisis period. Design/methodology/approach This study uses the MF-DFA to analyze house price fluctuations. Findings The findings confirmed that the housing market series are multifractal. Furthermore, all the markets showed long-term persistence in both the short and long-term. The USA is identified as the most persistent house market in the short run and Japan in the long run. Moreover, in terms of efficiency, Canada is identified as the most efficient house market in the long run and the UK in the short run. Finally, the result of before and after the financial crisis period is consistent with the full sample result. Originality/value The contribution of this study in the literature is fourfold. This is the first study that has examined the house prices efficiency by using the MF-DFA technique given by Kantelhardt et al. (2002). Previously, the house market prices and efficiency has been investigated using generalized Hurst exponent (Liu et al., 2019), Quantile Regression Approach (Chae and Bera, 2019; Tiwari et al., 2019) but no study to the best of the knowledge has been done that has used the MF-DFA technique on the housing market. Second, this is the first study that has focused on the house markets of G7 countries. Third, this study explores the house market efficiency by dividing the market into two periods i.e. before and after the financial crisis. The study strives to investigate if the financial crisis determines the change in the degree of market efficiency or not. Finally, the study gives valuable insights to the investors that will help them in their investment decisions.

Tornadoes, poverty and race in the USA: A five-decade analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Russ D. Kashian ◽  
Tracy Buchman ◽  
Robert Drago
Keyword(s):  
African American ◽  
African Americans ◽  
Study Finding ◽  
Median Income ◽  
Content Type ◽  
Vulnerable Communities ◽  
Long Run ◽  
Level Data ◽  
The Usa

PurposeThe study aims to analyze the roles of poverty and African American status in terms of vulnerability to tornado damages and barriers to recovery afterward.Design/methodology/approachUsing five decades of county-level data on tornadoes, the authors test whether economic damages from tornadoes are correlated with vulnerability (proxied by poverty and African American status) and wealth (proxied by median income and educational attainment), controlling for tornado risk. A multinomial logistic difference-in-difference (DID) estimator is used to analyze long-run effects of tornadoes in terms of displacement (reduced proportions of the poor and African Americans), abandonment (increased proportions of those groups) and neither or both.FindingsControlling for tornado risk, poverty and African American status are linked to greater tornado damages, as is wealth. Absent tornadoes, displacement and abandonment are both more likely to occur in urban settings and communities with high levels of vulnerability, while abandonment is more likely to occur in wealthy communities, consistent with on-going forces of segregation. Tornado damages significantly increase abandonment in vulnerable communities, thereby increasing the prevalence of poor African Americans in those communities. Therefore, the authors conclude that tornadoes contribute to on-going processes generating inequality by poverty/race.Originality/valueThe current paper is the first study connecting tornado damages to race and poverty. It is also the first study finding that tornadoes contribute to long-term processes of segregation and inequality.

Using structural equation modelling to assess the sustainable competitive advantages provided by the low-cost carrier model

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vedant Singh ◽  
S. Vaibhav ◽  
Somesh Kr. Sharma
Keyword(s):  
Structural Equation Modelling ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Low Cost ◽  
Future Research ◽  
Competitive Advantages ◽  
Content Type ◽  
Equation Modelling ◽  
Five Factors ◽  
Sustainable Competitive Advantages

PurposeThe purpose of this study is to examine the relationships between the dimensions of sustainable competitive advantages in the Indian low cost airlines.Design/methodology/approachThis study used structural equation modelling methods to identify the factors that significantly affect the sustainable competitive advantages enjoyed by Indian low-cost carriers (LCCs). Specifically, this study is based on the data from 208 airline experts that populate multiple structural equation models.FindingsResults indicate that indigenous efficiency, the LCCs perceptions of threat, dexterity, strategic persuasion and the LCC adopting an enabling role positively affect LCCs’ competitive advantages. These five factors were all correlated with each other. The results also show that relative to an LCC’s dexterity, indigenous efficiency is a stronger predictor of an LCC’s competitive advantages.Originality/valueThis study provides low-cost airlines with valuable information for designing effective strategies for obtaining competitive advantages in the LCC sector. To conclude the paper, the authors offer practical recommendations for managers and suggest some avenues for future research in this area.

scholarly journals ANALYSIS OF THE COMPETITIVE ADVANTAGE SUSTAINABILITY FACTORS BASED ON THE KEY COMPETENCIES OF AN ELECTRICAL ENGINEERING ENTERPRISE

2020 ◽  
pp. 134-141
Author(s):  
S. B. Moiseev
Keyword(s):  
Competitive Advantage ◽  
Organizational Development ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Evolutionary Mechanisms ◽  
Industrial Companies ◽  
Key Competencies ◽  
Methodological Approaches ◽  
Engineering Enterprise

The factors influencing the possibility of the theory of key competencies adaptation within the traditional ideas of the resource approach to ensure the long-term competitiveness of companies have been considered. For this purpose, the review of features of application of key competencies during the formation of strategies of the industrial companies of mature sectors of industries has been carried out, in which thanks to action of evolutionary mechanisms of technological and organizational development there are objective preconditions for creation of steady competitive advantages on their basis. The necessity of development of methodological approaches to the formation of company’s competitive strategy in the sector of electrical production based on the formation of organizational-economic mechanism of adaptation to external influences and internal changes to manage the development of key competencies as factors of sustainable competitive advantage in the future and the formation of long-term effective business development model of the enterprise, has been substantiated.

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