scholarly journals The fit of competitive strategies and firm-specific advantages with country-specific advantages in explaining manufacturing location choices

2020 ◽  
Vol 30 (3) ◽  
pp. 245-268 ◽  
Author(s):  
Murat Akpinar
Keyword(s):  
Product Category ◽  
Marketing Capability ◽  
Location Choices ◽  
Competitive Strategies ◽  
Hybrid Strategy ◽  
Content Type ◽  
Product Categories ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Manufacturing Location

Purpose This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location choices at product category level in the European automotive industry. Design/methodology/approach Seven hypotheses are formulated and tested using binomial logistic regression with data from 148 passenger car models (i.e. product category level) that are sold in Europe and manufactured in countries that offer CSAs of either cost advantages or differentiation advantages. The first four hypotheses test manufacturing location choices of product categories pursuing cost leadership strategy, differentiation strategy, focus strategy and hybrid strategy. The other three hypotheses test whether FSAs of R&D capability, marketing capability and operations capability will impact on the manufacturing location choice. The tests control for the type of passenger cars as well as the manufacturer’s region of origin. Findings While pursuing cost leadership strategy leads to manufacturing in countries that offer cost advantages, pursuing differentiation strategy as well as strong R&D capability and marketing capability result in manufacturing in countries that offer differentiation advantages. Focus strategy, hybrid strategy and operations capability do not have an impact on the manufacturing location choice at product category level. Research limitations/implications Conducting empirical research at product category level is subject to limitations in the choices of FSAs due to lack of availability of data. Practical implications Managers should assess the competitive strategies and FSAs of their product categories and then decide about manufacturing locations based on their fit with host country CSAs. Policymakers should understand the CSAs of their countries and target to attract manufacturing FDI from product categories with matching competitive strategies and FSAs. Originality/value The research contributes to discussions in explaining manufacturing location choices. Its originality lies in being the first study to test the fit of competitive strategies and FSAs of product categories with CSAs.

International competitive strategies, organizational learning and export performance: a match and mis-match conceptualization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry F.L. Chung ◽  
Mia Hsiao-Wen Ho
Keyword(s):  
Organizational Learning ◽  
Market Share ◽  
Export Performance ◽  
Competitive Strategies ◽  
Content Type ◽  
Strategic Performance ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

Purpose This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature. Design/methodology/approach This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach. Findings Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected. Research limitations/implications This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties). Practical implications While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation. Originality/value This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

Survival of construction SMEs in macroeconomic crises

2018 ◽  
Vol 16 (4) ◽  
pp. 654-673 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Aynur Kazaz ◽  
Selim Sahin
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Difference ◽  
Focus Strategies ◽  
Cost Leadership Strategy

PurposeThis paper aims to present the effect of innovation on implementing competitive strategies (CSs) and to find their relationships on the survival of construction-related small- and medium-sized enterprises (SMEs) in macroeconomic crises.Design/methodology/approachData were compiled from construction SMEs in Turkey. The research used structural equation modeling to investigate the relationships between innovation, CSs and firm survival (FS).FindingsInnovative construction SMEs may implement differentiation and focus strategies and survive without CSs, whereas innovation may be obtained through cost leadership strategy. Also, differentiation and focus strategies may play a role to survive. However, the cost leadership strategy may be implemented after survival. Finally, differentiation strategy may be triggered by innovation and focus strategies.Research limitations/implicationsThe model may be applied on other construction organizations. Future studies may also examine the difference in findings concerning other industries and regions. Moreover, different factors may be added to the model. However, a larger group of samples could cause different results.Practical implicationsThis study may be a roadmap for practitioners to plan their firms’ strategies, considering innovation, CSs and FS. In this context, they may pay attention to innovative production processes to survive.Social implicationsSurvived SMEs may sustain their works through the prevention of crisis-based unemployment. Hence, this benefit may bring a wealthier society.Originality/valueThis research is first to propose a model connecting innovation and CSs for SMEs’ survival in macroeconomic crises. This is convenient for rivalry of SMEs planning to be long-lasting enterprises.

Business strategy, market competition and earnings management

2015 ◽  
Vol 9 (3) ◽  
pp. 401-424 ◽  
Author(s):  
Peng Wu ◽  
Lei Gao ◽  
Tingting Gu
Keyword(s):  
Earnings Management ◽  
Business Strategy ◽  
Market Competition ◽  
Real Earnings Management ◽  
Hybrid Strategy ◽  
Content Type ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

Purpose – The purpose of this study is to explore the relationships among business strategy, market competition and earnings management. Design/methodology/approach – This paper uses 2,037 Chinese A-share listed firms from 2010 to 2012 to test the research questions using regression analyses. Findings – The firms that follow cost leadership strategy (cost leaders) are more likely to have a higher level of real earnings management. The firms that follow differentiation strategy (differentiators) are less likely to use real earnings management. For cost leaders, the market competition further increases the level of real earnings management, whereas the level of earnings management of differentiators is not significantly impacted by the market competition. Practical implications – Results of this study indicate the feasibility of differentiation strategy in China and suggest that management should be encouraged to use such a strategy or to use a hybrid strategy to achieve its operational and financial goals. Originality/value – The study contributes to the research of earning management by providing evidence on that business strategy has significant impacts on earnings management. It also shows an incremental influence of market competition on earnings management through its impacts on business strategy.

The role of market and product category characteristics in local versus foreign language branding in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pablo Farías ◽  
Luis Torres
Keyword(s):  
Latin America ◽  
Foreign Language ◽  
Latin American ◽  
Product Category ◽  
Cultural Dimensions ◽  
Brand Names ◽  
High Tech ◽  
Content Type ◽  
Local Language ◽  
Product Categories

PurposeThis paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.Design/methodology/approachHypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.FindingsResults revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede's national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.Originality/valueThis paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.

scholarly journals Generic competitive strategies on organizational performance in Nepalese Commercial Banks

Pravaha ◽  
2020 ◽  
Vol 25 (1) ◽  
pp. 87-94
Author(s):  
Jitendra Pd. Upadhyay ◽  
Pitri Raj Adhikari
Keyword(s):  
Organizational Performance ◽  
Commercial Banks ◽  
Core Competency ◽  
Multiple Regression Model ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Impact ◽  
The Relationship

This paper attempts to examine the impact of generic competitive strategy on organizational performance in Nepalese commercial banks. It has employed descriptive and causal comparative research design to estimate the relationship between dependent variable (organizational performance) with independent variables (differentiation strategy, cost leadership strategy, focus strategy, organization’s core competency and bank size). Data has been collected from 384respondents by using structured questionnaire. The multiple regression model has been used to test the relationship. It is found that organizational performance of banks is influenced by cost leadership, differentiation, focus, organization ‘score competency and bank size.

Strategic merge: a gain or a gamble – the case of Telco China

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Wing Sun Li
Keyword(s):  
Undergraduate Students ◽  
Business Performance ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
High Tech ◽  
Competitive Strategies ◽  
Content Type ◽  
Differentiation Strategy ◽  
Academic Level

Learning outcomes By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy. Case overview/synopsis High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation? Complexity academic level Undergraduate students and post graduate students taking strategic management course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Digital visual engagement: influencing purchase intentions on Instagram

2018 ◽  
Vol 22 (4) ◽  
pp. 362-381 ◽  
Author(s):  
Chiara Valentini ◽  
Stefania Romenti ◽  
Grazia Murtarelli ◽  
Marta Pizzetti
Keyword(s):  
Interactive Effect ◽  
Product Category ◽  
Purchase Intentions ◽  
Visual Communications ◽  
Content Type ◽  
Product Categories ◽  
Direct Gaze ◽  
Intention To Purchase ◽  
Visual Engagement ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the effects of visual communications on Instagram users’ propensity to engage with image-based content through online behaviors such as liking, sharing, commenting and following, and their intention to purchase the product depicted in the visual communications.Design/methodology/approachAn experimental design was used to measure the effect of branded Instagram images on a sample of active Instagram users. Two features of Instagram images (subject’s gaze: direct vs indirect; product salience: low vs high) were manipulated and their interactive effect tested on online behaviors.FindingsThe paper offers empirical evidence that direct gaze and high product salience positively affect digital visual engagement. Moreover, digital visual engagement influences intention to purchase.Research limitations/implicationsThe hypotheses were tested on a single product category and on only two image-based features. Further studies might replicate the experiment on different product categories and include different image-based features.Practical implicationsThis empirical study can offer communication managers important information on the image-based features that are most effective in increasing digital visual engagement and positively influencing purchase intentions in visual communications.Originality/valueThe study empirically demonstrates that the choice of specific image-based features in visual communication matters for increasing digital visual engagement among Instagram users.

Comparison-based perceived attribute performance as a better antecedent of satisfaction, value and loyalty

2019 ◽  
Vol 31 (5) ◽  
pp. 1252-1268 ◽  
Author(s):  
Jorge Vera-Martinez ◽  
Sidney Ornelas
Keyword(s):  
Business Performance ◽  
Product Category ◽  
Product Performance ◽  
Performance Measurements ◽  
Content Type ◽  
Performance Variables ◽  
Product Categories ◽  
Dishwashing Detergent ◽  
Empirical Tests ◽  
Level Performance

PurposeProduct performance measurements have been used to explain other business performance variables. The purpose of this paper is to propose that, regarding Mexican consumers, the “comparison-based perceived attribute performance” (CAP) approach is a better predictor of outcomes, such as satisfaction, value and loyalty, compared with the traditional measurement of “non-comparison-based perceived attribute performance” (NCAP). These two forms of assessing attribute-level performance may be considered as different constructs.Design/methodology/approachUsing these two approaches, empirical tests were performed to attribute performance measurement and were conducted on products from two different categories: tequila and liquid dishwashing detergent. Regression analyses were performed using Mexican consumer samples ofn=295 andn=239, respectively.FindingsAs opposed to NCAP, CAP measurements yielded higher statistical levels of satisfaction, value and loyalty for both product categories. In the case of tequila, factor analysis indicated a clear separation between the two types of measurements, suggesting that they should be considered distinct constructs. However, this was not found for the other product category.Originality/valueCAP, which has better potential to predict outcomes than NCAP, could have relevant implications in brand positioning assessment and importance-performance analyses.

CSR practices, identification and corporate reputation

2020 ◽  
Vol 33 (3/4) ◽  
pp. 361-379
Author(s):  
Juan Manuel Bruno ◽  
Francisco J. Sarabia-Sanchez ◽  
Enrique Carlos Bianchi
Keyword(s):  
Financial Services ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Product Category ◽  
Moderating Effect ◽  
Consumer Involvement ◽  
Content Type ◽  
Product Categories ◽  
Service Companies ◽  
The Individual

PurposeThis study verifies the influence of the dimensions of corporate social responsibility (CSR) practices and consumer involvement on the identification of the individual with the company and the corporate reputation, moderated by the product category.Design/methodology/approachA covariance-based structural equation modelling is used to test the model, using a sample of 568 Argentine consumers. A multigroup analysis is employed to assess the moderating effect of the product category.FindingsCSR practices have heterogeneous influence based on their dimension, and this influence is moderated by the product category. Accordingly, environmental practices promote consumer identification with the company, whereas those economically oriented have a direct influence on reputation. In contrast, social practices contribute to reputation if they are connected to the business model.Research limitations/implicationsThe study is focussed on Argentina, analysing two product categories (laptops and financial services for final consumers) and using a large, but not strictly random, sample. In order to mainstream the results, it would be relevant to replicate the proposed model in other countries and with other product categories.Originality/valueIt provides information about the perception of consumers regarding the CSR practices from a multi-dimensional perspective, since they have an uneven effect on identification of consumer with the company and corporate reputation due to the moderating effect of the product category. The findings of this study may be relevant for managers of technology and banking service companies.

scholarly journals Profiting from Green Innovation: The Moderating Effect of Competitive Strategy

2018 ◽  
Vol 11 (1) ◽  
pp. 15 ◽  
Author(s):  
Jiawen Chen ◽  
Linlin Liu
Keyword(s):  
Competitive Strategy ◽  
Innovation Management ◽  
Green Innovation ◽  
Competitive Strategies ◽  
Theoretical Understanding ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Green Product Innovation ◽  
Green Process Innovation ◽  
Cost Leadership Strategy

Despite the importance of green innovation, empirical evidence on its relationship with firm performance is mixed. This study endeavors to address this inconsistency in the evidence by investigating the value-capturing role of competitive strategy. It argues that firms tend to choose appropriate a competitive strategy to maximize performance of green innovation, especially in highly competitive contexts. We collected data from 195 firms in China. Our results suggest that the performance implications of green innovation (including green product innovation and green process innovation) are moderated by competitive strategies (including differentiation strategy and cost-leadership strategy), and these moderating effects are more prominent when competitive intensity is high. The findings of this study enrich theoretical understanding both of green innovation and of competitive strategy and have practical implications for green innovation management.

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