Fostering sustainability: reinventing SME strategy in the new normal

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meng Kui Hu ◽  
Daisy Mui Hung Kee
Keyword(s):  
Competitive Advantage ◽  
Business Strategy ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Sustainable Competitive Advantage ◽  
Holistic View ◽  
Resource Based View ◽  
New Normal ◽  
Content Type ◽  
Subsequent Performance

Purpose This paper aims to deliberate the significant impacts caused by the COVID-19 pandemic on small and medium enterprises (SMEs). It also discusses SMEs’ practical approaches to capitalise on the renewed opportunity in the new normal by expanding their businesses regionally and globally. This paper also discusses the tactical and strategic interventions SMEs need to take to charge forward. Design/methodology/approach The resource-based view of the firm (Barney, 1991) is used to explain how SMEs develop a sustainable competitive advantage in the new normal. The resource-based view focuses on the link between strategy and firm internal resources. Drawing from the resource-based view of the firm, internal analysis of the resources that are regarded as sources of competitive advantage controlled by the SMEs is imperative in today’s business environment. Based on the resource-based view theory, this paper focuses on reinventing SME’s strategies in the new normal to foster sustainability. Findings Post-COVID-19 pandemic, SMEs must essentially be dynamic, forward-looking and transformational in capturing the regional and global markets’ opportunities. They need to sharpen their internal competencies and realign their effective business strategy in seizing the vast opportunities in the international markets. Practical implications How SMEs respond to COVID-19 has important implications for subsequent performance in the new normal. This study focuses on the different potential SMEs’ reactions to COVID-19 and how their strategy affects SMEs performance and fosters sustainability in the new normal. Social implications The sustainability of SMEs is critical for the nation’s socio-economy. This study offers a holistic view of how SMEs respond to their challenges and help them choose the right business options. Originality/value This paper’s contents are solidly based on accumulated evidence, observation and critical arguments on the impacts caused by the COVID-19 pandemic that caused numerous challenges faced by the SMEs, with a specific focus on SMEs operating in Malaysia.

Dynamic Capabilities

Management ◽  
2020 ◽  
Author(s):  
Anja Tuschke ◽  
Emma Buellet
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Dynamic Capabilities ◽  
Evolutionary Economics ◽  
Empirical Work ◽  
Sustainable Competitive Advantage ◽  
Vast Number ◽  
Resource Based View ◽  
Dynamic Capabilities Perspective

As a relatively young, yet flagship discipline of strategic management, dynamic capabilities research has emerged as one of the central perspectives exploring the foundations of the achievement of sustainable competitive advantage, especially in the context of dynamic environments. Dynamic capabilities are deeply rooted in, and sometimes seen as an extension of, the resource-based view of the firm. The notion that competitive advantage both stems from the exploitation of current capabilities and the development of new ones was already vaguely conceptualized by prominent contributors of the resource-based view such as Edith Penrose and Birger Wernerfelt. However, the idea that there are special capabilities—dynamic capabilities—enabling organizations to build, integrate, or reconfigure their internal and external resource and competence base, was formerly conceptualized in the late 1990s as a separate yet connected stream of research (see Teece, et al. 1997—cited under Seminal Papers—which is titled “Dynamic Capabilities and Strategic Management”). The dynamic capabilities perspective is also strongly connected to evolutionary economics. This is why the field has focused for some time on the exploration of semi-automatic and path-dependent routines as the foundation of dynamic capabilities. However, proponents of the behavioral theory of the firm have criticized this approach and integrated the deliberate human element in the dynamic capabilities perspective (for an overview of the theoretical assumptions underpinning the dynamic capabilities perspective, see the article “Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance”—Augier and Teece 2009, cited under Conceptual Refinements). As a result, various important debates emerged in the community and the field has been generally criticized for its ambiguity, inconsistency, and conflicting assumptions. This is exemplified by the important number of diverging conceptual contributions to the field, still up to this day, and by the relatively late materialization of empirical work. Nevertheless, the vast number of contributions illustrates the necessity to consider dynamism, which underlies the concept of dynamic capabilities, as a key component of competitive advantage and organizational adaption (see the separate Oxford Bibliographies in Management article “Organizational Adaptation”). The key contributors of the dynamic capabilities perspective in management research are, among others, Kathleen Eisenhardt, Constance Helfat, Margaret Peteraf, David Teece, and Sidney Winter. To support scholars to move toward a theory of dynamic capabilities, this bibliography provides an overview of the field, its origin and developments, while highlighting the conceptual and empirical problems that remain to be solved.

A conceptual framework

2019 ◽  
Vol 31 (2) ◽  
pp. 331-347 ◽  
Author(s):  
George Kofi Amoako
Keyword(s):  
Competitive Advantage ◽  
Conceptual Model ◽  
Future Study ◽  
Implementation Strategies ◽  
Strategy Implementation ◽  
Sustainable Competitive Advantage ◽  
Holistic View ◽  
Content Type ◽  
Effective Implementation ◽  
Environmental Activities

Purpose The purpose of this paper is to explore the possible effects of corporate environmental activities on sustainable competitive advantage through the mediation of leadership factors and effective implementation strategies. Design/methodology/approach The work is essentially non-empirical review of the literature with the development of a conceptual model which can be tested in a later study. Findings The study proposes that corporate environmental activities can give firms competitive advantage. The studies also propose that stakeholders can act as pressure thereby moderating the relationship between corporate environmental activities and sustainable competitive advantage. Leadership factors and effective implementation affect competitive advantage. Research limitations/implications This study has a few limitations that must be considered and could provide guidance for future study; as this study does not address customers point of view, future study could help in the investigation in order to get a holistic view. Moreover, the study is based on the literature, and the conceptual model has not been tested. Practical implications The study proposes that good leadership and effectiveness in strategy implementation can make corporate environmental activities lead to sustainable competitive advantage. The findings of the study provide managers of firms with a possible tool in creating sustainable competitive advantage. Originality/value Despite the rapid growth in research on environmental issues in corporate world, limited studies have been conducted on how leadership factors and effectiveness of strategy implementation can influence how corporate environmental activities affect competitiveness of firms. This study makes an original contribution by proposing strategies for sustainable competitive advantage through the instrumentality of corporate environmental decisions.

Big data and competitive advantage at Nielsen

2014 ◽  
Vol 52 (3) ◽  
pp. 573-601 ◽  
Author(s):  
Michael E. Prescott
Keyword(s):  
Competitive Advantage ◽  
Business Strategy ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Business Environment ◽  
Digital Data ◽  
Dynamic Capability ◽  
Annual Reports ◽  
Content Type

Purpose – The purpose of this paper is to illustrate how an international company, Nielsen Holdings, reacted to changes in their highly competitive industry brought about by advances in technology. This case presents the strategic management decisions that enabled Nielsen to regain its competitive advantage. This case further describes the functioning of the resource-based view (RBV) of strategy, dynamic capabilities framework, and digital data genesis (DDG), in a turbulent business environment. Design/methodology/approach – The case study is based primarily upon secondary data to include annual reports, press releases, company web site, as well as articles. Findings – The case study provides an example of the functioning of a once durable competitive advantage that was eroded due to advances in technology, and the steps the company took to regain that advantage. The paper illustrates the functioning of a capability and a dynamic capability in DDG. Practical implications – This case can be used for the teaching of decision making, business strategy, the RBV of strategy, dynamics capabilities, and DDG. Originality/value – This paper provides an example of the functioning of the capability and dynamic capability of DDG.

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.

A resource-based framework for strategically managing identity

2019 ◽  
Vol 32 (1) ◽  
pp. 80-102 ◽  
Author(s):  
Sam Rockwell
Keyword(s):  
Competitive Advantage ◽  
Organizational Identity ◽  
Identity Management ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Content Type ◽  
Management Framework ◽  
Identity Processes ◽  
High Level

Purpose The purpose of this paper is to blend a resource-based view of the firm with the 5R Model of Organizational Identity Processes to offer a new Strategic Identity Management Framework to help organizations uncover, analyze and optimize their identity as a resource for creating sustainable competitive advantage. Design/methodology/approach This conceptual paper relied upon an examination of literature about sustainable competitive advantage, the resource-based view of the firm and the 5R Model of Organizational Identity Processes. Findings Synergies were found between the VRIO model and the 5R Model of Organizational Identity Processes. A new Strategic Identity Management Framework was created and a case study was used to illustrate its application. Research limitations/implications Research is needed to validate, confirm and extend the use and application of the new framework within organizations. Practical implications The framework is anticipated to be particularly useful for middle managers because they are tasked with translating high-level strategies into action and leading lower level employees toward enacting the new or adapted identity claims. Originality/value Although ample organizational identity research exists, a framework for assessing identity claims for the purpose of achieving competitive advantage was lacking.

Ballarpur Industries Ltd: aligning marketing strategy in a turbulent environment

2011 ◽  
Vol 1 (3) ◽  
pp. 1-19
Author(s):  
Joffi Thomas ◽  
Ashok Pratap Arora ◽  
Rajen K. Gupta
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Marketing Strategy ◽  
Business Strategy ◽  
Emerging Market ◽  
Paper Industry ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Local Companies ◽  
The Impact

Subject area Transforming a production-oriented firm into a marketing-oriented firm; aligning marketing strategy of local companies in globalizing emerging markets; creating sustainable competitive advantage. Student level/applicability Post graduate management courses in marketing management, strategic marketing, international marketing, business strategy. Case overview This case is about how the leader in the Indian paper industry, Ballarpur Industries Ltd (BILT), is proactively transforming a production-oriented firm to a marketing-oriented firm to compete in the globalizing emerging market scenario, in the wake of economic liberalisation. It requires the participants to evaluate the impact of marketing initiatives made, and align BILT's marketing strategy to leverage it's strengths and help create sustainable competitive advantage. Expected learning outcomes To understand the need for local companies in emerging markets to proactively align marketing strategy to build competitive advantage in the globalizing industry. Supplementary materials Teaching notes.

scholarly journals Exploiting Resources for Competitive Advantage of Cooperative Organizations in Malaysia

2018 ◽  
Vol 3 (12) ◽  
pp. 63
Author(s):  
Rohana Othman ◽  
Roshayani Arshad ◽  
Nooraslinda Abdul Aris ◽  
Siti Maznah Mohd Arif
Keyword(s):  
Competitive Advantage ◽  
Business Strategy ◽  
Business Performance ◽  
Publishing House ◽  
Annual Reports ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Internal Resources ◽  
Sustained Competitive Advantage ◽  
International Publishing

Outstanding business performance and sustainable competitive advantage depend critically on tangible organizational resources, looking from the Resource-based view theory (Galbreath, 2004; Fahy, 2002). Lippman and Rumelt (2003) opined firms’ assets (physical or financial) hold the potential to create peak value for competitive advantage, relatively free from the threat of being replicated. Firms are able to thwart threats by focusing on identifying and exploiting resources. This paper investigates the influence of organization’s tangible resources on cooperative's success. Content analyses of annual reports of Malaysian cooperatives testify tangible internal resources are a viable business strategy for sustained competitive advantage positively impacting performance.Keywords: Physical Resources, Cooperatives, Resource-based view (RBV) theory, SustainabilityeISSN 2398-4295 © 2018. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.

scholarly journals The Relations between Dynamic Capabilities and Core Competencies on the Case of Polish Companies

2020 ◽  
Vol 10 (3) ◽  
pp. 48
Author(s):  
Paweł Cegliński
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Core Competencies ◽  
Business Environment ◽  
Future Research ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
End Products ◽  
The Impact ◽  
The Relationship

This article deals with the relationship between dynamic capabilities and core competencies of companies. Both categories extend the resource-based view of the firm. They are difficult to work out, but thanks to their durability and universality they enable to achieve a sustainable competitive advantage. Due to intensive changes in the business environment and increasing difficulty in forecasting them, the importance of adaptability based on both categories increases. The presented results of the research of two leading Polish companies—Panek S.A. and Cukiernia Sowa—are practical examples of the impact of dynamic capabilities on the creation of core competencies and indirectly core and end products and services. The analysis is the basis for improvement of future research.

Sources of sustainable competitive advantage: the case of rice-milling firms in Thailand

2014 ◽  
Vol 116 (2) ◽  
pp. 272-291 ◽  
Author(s):  
Yuttakorn Ritthaisong ◽  
Lalit M. Johri ◽  
Mark Speece
Keyword(s):  
Competitive Advantage ◽  
Vertical Integration ◽  
Sustainable Competitive Advantage ◽  
Firm Resources ◽  
Resource Based View ◽  
Content Type ◽  
Hrm Practices ◽  
Organizational Reputation ◽  
Rice Milling ◽  
Depth Interviews

Purpose – This paper aims to investigate the effect of several valuable resources (organizational reputation, human resource management (HRM) practices, networks, and vertical integration in production) in explaining the performance of rice-milling firms in Thailand. Design/methodology/approach – Resource-based view (RBV) theory was used to explain that the particular bundle of firm resources can become the source of sustainable competitive advantage and thereby improve the business's performance. Semi-structured in-depth interviews and questionnaire were used to collect data from Thailand rice exporters. Then regression technique was employed for data analysis. Findings – Results from a survey of rice mills involved in international export showed that organizational reputation, some HRM practices, and networks were significantly related to firm's performance, but vertical integration was not. Originality/value – This study supports the basic assertion of RBV theory that a set of firm specific resources could be applied in ways that enhance sustainable competitive advantage.

The relationship between the concept of competitive advantage and the value of Catur Paramitha on SMEs in Sarbagita

2018 ◽  
Vol 60 (6) ◽  
pp. 1522-1538
Author(s):  
I. Ketut Rahyuda ◽  
Agoes Ganesha Rahyuda ◽  
Henny Rahyuda ◽  
Made Reina Candradewi
Keyword(s):  
Competitive Advantage ◽  
Cultural Values ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
Business Environment ◽  
Local Conditions ◽  
Content Type ◽  
Fair Competition ◽  
Entrepreneurial Spirit ◽  
The Relationship

Purpose This study aimed to determine the relationship between the concept of competitive advantage and the value of Catur Paramitha on small and medium enterprises (SMEs) in Sarbagita. Design/methodology/approach The design of this research used a qualitative approach based on the grounded theory with explorative and phenomenological approaches. Findings The relationship of the concept of competitive advantage orientation and the value of Catur Paramitha on SMEs in Sarbagita forms the characters SMEs’ business actors, namely, first, fair competition without hurting or harming others can be avoided. Second, the emergence of business cooperation with various business characters can form a wise entrepreneurial spirit. Third, making the entrepreneur more professional in managing the business. Fourth, forming a happy attitude to help others, making cooperation. Research limitations/implications The integration of applied values of local wisdom on the concept of competitive advantage orientation in building business in SME sector in Bali as a guideline for managers and lead the business. Originality/value The originality of this research was conceptually, building the concept of competitive advantage with local wisdom in developed countries has done by many. However, the local wisdom in developed countries is very different from the local wisdom in Indonesia, especially in Bali. Not all the main characteristics of the basic concept of cultural values in developed countries are applicable and in accordance with local conditions and cultures in the context of country. In addition, the concept of competitive advantage in developed countries is often assumed to operate in a stable and predictable business environment.

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