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

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes

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.

Author(s):  
Emad Ahmad ◽  
Medhat Alsafadi ◽  
Ahmad Mashal ◽  
Walid Saleh ◽  
Hiba Assaf

The aim of this study was to identify the impact of HR activities on competitive advantage in private schools. The study uses primary data collected with the help of a well-structured questionnaire that was developed and distributed among a sample of 92 respondents (49 female and 43 male), questionnaire results were statistically analyzed to test the hypotheses that were developed to identify the impact of HR activities on competitive advantages. Multiple regression analysis was used as a statistical tool and technique to identify five key elements: recruitment and reward system, training and skill development activities, organization climate, employee participation and empowerment; and effective communication system to determine competitive advantage in private schools in Jordan. The results indicated that there is a statistically significant effect of HR activities on the competitive advantage; On the other hand, there is no impact of other variables.


2017 ◽  
Vol 28 (4) ◽  
pp. 506-530 ◽  
Author(s):  
S.D. Uma Mageswari ◽  
R. Chitra Sivasubramanian ◽  
T.N. Srikantha Dath

Purpose The purpose of this paper is to ascertain the current status of knowledge management (KM) adoption in the Indian manufacturing organizations and to develop a comprehensive research model to investigate the impact of enabling conditions for KM and the impact of KM on organizational performance through structural equation modelling. Design/methodology/approach A descriptive research design is adopted and primary data are collected through structured questionnaire. In total, 251 responses were obtained from the top- and middle-level managers and the structural relationships in the research model were tested using the partial least squares method. Findings The results revealed a moderate adoption of KM by the manufacturing companies. Also, a significant impact of the enablers on KM processes is observed. It is found that Indian manufacturing is operating in labour-intensive traditional methods and KM is still in its infancy. The impact of KM on the performance is moderate and contradicting the extant literature, the impact of KM on innovation is found to be weak. Research limitations/implications The study is carried out in companies located in India and hence generalizing the findings should be done with caution. The sample is dominated by small- and medium-sized enterprises (SMEs) which may have implications for the findings. Practical implications As manufacturing companies in the developing countries such as India experience a greater competition in the globalized economy, adoption of KM will perk up the performance of the organizations. Practicing managers need to create a culture that facilitates KM adoption. Policy makers shall support SMEs in technology adoption, R&D, skill development and so on. Originality/value Previous KM studies in India are fragmented and analysed KM processes and KM enablers in isolation. Also, the holistic studies on KM literature focussed only on one or two facets of KM. A study which investigates the interactions between KM enablers, KM processes and organizational performance and innovation is scarce. The scarcity of empirical studies on KM and a dearth of understanding of the KM concept led to this maiden attempt to provide a comprehensive understanding of KM framework in the Indian manufacturing sector. A validated structured questionnaire for exploring KM practices in the Indian context is developed. Though the importance of the influence of external factors is theoretically emphasized, an empirical investigation is first of its kind.


2015 ◽  
Vol 35 (1) ◽  
pp. 145-174 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes ◽  
Nikolaos Kipraios

Purpose – The purpose of this paper is to explore the relationship between the acquisition of an ISO 9000 certification and the overall financial performance of the certified firms. More specifically, the study proposes a multidimensional conceptual framework, including “customers’ demand”, “ISO adoption”, “operation efficiency”, “market efficiency” and “overall financial performance”. Such a multidimensional approach has randomly been explored in the existing literature, making the examination of the proposed conceptual framework an interesting research topic. Design/methodology/approach – The proposed conceptual framework was tested on a sample of Greek ISO 9000-certified companies of various economic sectors. Quality managers were used as key respondents. The final sample consisted of 168 companies. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analyzed using the structural equation modelling technique. The findings are based on the 2000 version of the ISO series, which is generally accepted and has widespread use, as it has eliminated most of the disadvantages of the 1994 version. The present study is empirical (it is 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 – The findings of the study provide strong evidence that ISO 9000 implementation is highly associated with improvements in overall financial performance. Moreover, it was found that ISO implementation is directly associated with significant improvements in quality awareness, operations execution, market share, customer satisfaction and sales revenue. Finally, customers’ demand was not found to be the most important motivation for implementing an ISO certification. Rather, it seems that companies seek for quality improvement due to internal motives. Research limitations/implications – A limitation stemming from the implemented methodology is the use of self-report scales to measure the constructs of the proposed model. Moreover, the present paper lacks a longitudinal approach, since it is cross-sectional and provides a static picture of ISO implementation. Practical implications – The paper makes an analytical effort in order to point out areas that companies should emphasize in order to successfully implement ISO 9000 and, therefore, harvest its potential benefits. Certain practical implications are offered in the final part of the paper. Originality/value – The paper proposes an enhanced conceptual framework that examines vital issues concerning the successful implementation of ISO 9000, thus, providing valuable outcomes for decision makers and academics. Moreover, the results of the study may be generalized in other developed countries whose economy faces similar significant challenges as Greece.


2020 ◽  
Vol 80 (4) ◽  
pp. 491-506
Author(s):  
Danang Budi Santoso ◽  
Christopher Gan ◽  
Mohamad Dian Revindo ◽  
Natanael Waraney Gerald Massie

PurposeThis study investigates the welfare impact of microfinance on rural households in Indonesia. Its finding will bridge the gap in the Indonesian microfinance literature.Design/methodology/approachThe research was conducted by collecting primary data and administering a structured questionnaire to rural households in Bantul District, Yogyakarta Province, Indonesia. We employed the logistic model to measure welfare impacts of microcredit borrowers.FindingsThe research finds that purpose of loan, monthly income, monthly expenditure, interest rates, loan amount, education and marital status have significant effects on the probability of increasing borrowers' welfare after accessing microcredit.Practical implicationsThis study will propose some policy recommendations for Indonesian policymakers that may yield better strategies to help improve the impact of their microcredit programmes on the welfare of rural households.Originality/valueThe authors confirm that the article has not been submitted to peer review, nor is in the process of peer reviewing and nor has been accepted for publishing in another journal. The author(s) confirms that the research in their work is original, and that all the data given in the article are real and authentic.


Author(s):  
Reem Mohamed Ismaeil El-Masry ◽  

This paper aims to develop a framework for the entrepreneurial orientation in Egypt to cope with the required level of competitive advantage to be achieved by SMEs in the Egyptian context through the mediating role of sustainability. This illustration will be tackling every dimension of entrepreneurial orientation, Sustainability, and competitive advantage. Then the relationship between the three variables will be tested and examined. Literature and prior studies related to this field are reviewed to construct the research hypotheses which state that there is a significant relationship between entrepreneurial orientation and sustainability, there is a significant relationship between sustainability and competitive advantage, Sustainability mediates the relationship between entrepreneurial orientation and competitive advantage. These hypotheses will be tested throughout the research study. Primary data is collected from entrepreneurs of Egyptian SMEs in the food and beverage sector using a quantitative approach (Questionnaire). The data collected is analyzed and then the results of the analysis and findings are demonstrated by the end of the research with some recommendations to Egyptian SMEs to enhance their competitive advantages.


Today, organizations use digital applications to enhance their HR operations, especially during the COVID-19 pandemic. Many organizations compete to improve business performance as well as having a competitive advantage in their business areas. The business strategic plans depend on business' facts and data that support these plans. HR analytics promises to provide evidence-based initiatives, data-driven decision making, prioritize the impact of HR investments and enhance the business value and performance. This study tries to gain insights into the reasons for not using HR analytics among Saudi HR professionals to enhance business performance and maintain a competitive advantage. It uses the descriptive survey research design. This paper focuses on the individual-level adoption of HR analytics by human resource professionals. The main objective of this paper is to understand the importance of HR analytics and to gain insight into the barriers that affect the full implementation of HR Analytics among Saudi HR professionals. The total population used in this study is 168 HR professionals who work in the Dairy Products Manufacturing Companies in Saudi Arabia. The primary data used in this study collected through the Unified Theory of Acceptance and Use of Technology (UTAUT) questionnaire, which was sent through the work's official email, WhatsApp, and LinkedIn to the target sample. The study finds positive relationships between HR analytics adoption and the other factors. Also, the results show the main barriers that affect the implementation of HR Analytics by Saudi HR Professionals.


2020 ◽  
Vol 24 (2) ◽  
pp. 277-302
Author(s):  
Shellyanne Wilson

PurposeThe purpose of this paper is to examine the role of Government via its industrial policy aimed at building competitiveness in apparel manufacturing in a developing country.Design/methodology/approachA conceptual framework that proposes the causal relationships between policies and competitiveness is applied to the apparel manufacturing sector in Trinidad and Tobago. The study utilises primary data from interviews and observations, and secondary data sources inclusive of industry and fashion companies reports. Data analysis of four vertical policies is performed via the use of system dynamics modelling and simulation.FindingsThe four vertical policies were found to impact three interrelated elements in the apparel manufacturing sector: the market, apparel products and productive resources. Policies that intentionally focussed on improving market attractiveness benefited wide segments of the industry. However, policies that focussed on product and resource attractiveness that were designed as direct support for selected firms had a lower impact on overall industry competitiveness than those that had an industry-wide focus.Research limitations/implicationsA single industry in a small developing island state limits the generalisability of the research findings. Additionally, non-reporting of export data and aggregation of industry data limits the conclusions that can be drawn regarding the impact of the vertical policies on the apparel industry. 10; 10;Practical implicationsPolicy-makers should consider the scope of the vertical policies in terms of the number of firms in the industry to benefit, and the need for complementary horizontal policies for creating enabling environments for competitiveness.Originality/valueThe paper proposes a conceptual framework to capture relationships between vertical policy and competitiveness.


2020 ◽  
Vol 14 (1) ◽  
pp. 31-46 ◽  
Author(s):  
Muhammad Zubair Alam ◽  
Shazia Kousar ◽  
Aiza Shabbir ◽  
Muhammad Ali Kaleem

Purpose Intrapreneurship is rapidly concerning organizations to tailor their operations and strategies for competitive advantage. Research on intrapreneurial dimensions is in the developing stage, requiring more rigorous methods of investigation and application in various contexts. This study aims to focus on individual level intrapreneurship by examining the association of personality traits (PTs) on intrapreneurial behaviour (IB) moderated by knowledge sharing behaviour (KSB) and comparison of employees in engineering and functional departments. Design/methodology/approach A survey has been conducted for data collection using a structured questionnaire. Partial least squares structural equation modelling has been used for hypotheses testing, moderation and multi-group analysis on a sample of 534 respondents. Findings Results reveal that PTs exerted a positive influence on IB. The impact of PTs on IB was more pronounced in the employees of functional departments. KSB moderates positively in the relationship between PTs and IB. Both groups significantly differ in dimensions of PTs. Practical implications Organizations can do little to improve PTs of employees, which impacts on intrapreneurship in organizations. However, KSB in organizations can be improved by adopting various measures. KSB eventually promotes innovation in organizations resulting in an overall competitive advantage for firms. Originality/value This is the first study that contributes theoretically in intrapreneurship literature by providing insights on PTs impacting IB incorporating KSB and comparing the diverse group of employees.


Author(s):  
Simone Guercini ◽  
Matilde Milanesi

In the fashion sector, the distribution functions and management of the processes involved in the network of stores have acquired a central role. This points to the potential rise of retailing competences, also among traditional manufacturing companies, as a factor of competitive advantage. The chapter outlines the characteristics of the “industrial retailer,” namely a retailer that integrates industrial capabilities, whose role is relevant in the configuration of supply networks, being operators that act globally with market and resource seeking strategies. The chapter sheds light on the phenomenon of stores openings, by providing an empirical investigation in two steps: the first has the aim of describing the extent and scope of the phenomenon; the second includes a case study of an Italian fashion firms with typical characteristics of the industrial retailer. The chapter highlights the impact on sourcing strategies and relevance of stores openings for the international expansion of brand-based companies.


2015 ◽  
Vol 117 (2) ◽  
pp. 538-552 ◽  
Author(s):  
Ioannis Assiouras ◽  
Georgia Liapati ◽  
Georgios Kouletsis ◽  
Michalis Koniordos

Purpose – The purpose of this paper is to investigate the impact of brand authenticity on brand attachment and subsequently on consumer behaviour related to food brands. Design/methodology/approach – Results are derived from primary data collected from a consumer sample in Greece. Respondents rate their brand authenticity and brand attachment for two well established authentic Greek brands in the food industry. Findings – The study confirms that brand authenticity predicts the brand attachment, while brand attachment influences consumers purchase intentions, willingness to pay more and promote the brand. Practical implications – The benefits of brand authenticity should not be ignored and should be protected by the brand managers of food brands because it can be the one of the competitive advantages that can be leveraged in the competitive food industry sector. Originality/value – It provides the required empirical support for the impact of brand authenticity on brand attachment and behavioural intentions in the food industry.


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