Culture and competitiveness in small-scale Latin-American forestry-based enterprising communities

Author(s):  
Carlos M. Jardon ◽  
Xavier Martinez–Cobas

Purpose Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to explore the relationship between culture and competitiveness in small-scale Latin-American forestry-based enterprising communities. Design/methodology/approach This study used 212 surveys in companies linked to the production, industrialisation and commercialisation sector of the forestry industry in the province of Misiones (Argentina), using partial least squares to analyse the relationships thereof. Findings Culture and competitive advantages improve the growth of small-scale timber businesses and growth, in turn, increases financial performance. However, culture does not have an impact on competitive advantage and no interaction effect of culture on competitive advantage was detected. The results can indicate that there might be a need to incorporate other concepts and operationalisation that are better suited to the geographical and industrial contexts in developing countries. Research limitations/implications The literature and measures used to operationalise variables in the survey did not necessarily succeed in capturing the culture in the studied small- and medium-sized enterprises. In addition, the design of the sample and subjective measures may partially condition the results. Practical implications For business managers and consultants, this study indicates that they must take into account the local culture to improve performance. Entrepreneurs must reorient the company strategy towards the long term, integrating local culture into their strategy to generate competitive advantages. Social implications Political authorities and social agents should also take into consideration the cultural aspects of the territory when implementing regulations and specific actions to improve the industry and strengthen the sense of community. The results highlight the vitality of animators and development agencies and of any factor that fosters social cohesion. Originality/value The paper shows a new approach to the relationship between culture and competitiveness in small-scale forestry-based enterprising communities, combining performance in a formal sector with the bazaar model.

2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir

Purpose The purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable. Design/methodology/approach Quantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents. Findings There is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher. Originality/value The originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.


2019 ◽  
Vol 46 (7) ◽  
pp. 861-873
Author(s):  
I. Ketut Rahyuda ◽  
Ida Bagus Anom Purbawangsa ◽  
Ida Bagus Ketut Surya

Purpose The purpose of this paper is to identify dimensions and indicators of “Catur Paramitha” that improve the performance of SMEs in Sarbagita area. Design/methodology/approach The study used a quantitative and qualitative approach. Glaser and Strauss’s (1967) grounded theory, and Strauss and Corbin (1990) were the bases for the qualitative approach. It also employed a quantitative approach to analyze the difference between the SMEs. The setting comprised of three municipalities in Bali and Denpasar; altogether, these areas are known as “Sarbagita.” Bali is divided into 8 districts, 1 city, and 57 regions. Due to the large number of SMEs in Bali, there is no institution that has been able to identify the exact number of SMEs in “Sarbagita.” Findings There is a significant and positive relationship between “Catur Paramitha” and the performance of SMEs in both East Java and Bali. The finding also describes the performance of the SMEs that apply the principles of “Catur Paramitha” and those that do not. “Catur Paramitha” that consists of “metria,” “karuna,” “upeksa” and “mudita” is a pivotal concept to apply for SME owners/management in order to prevent money from being the only basis for capitalist competition. Local wisdom can control cannibalism, turning it into humanism and friendship-based partnership or cooperation. Originality/value The originality of this research is its methodology, and the fact that the local culture becomes the basis for a successful business venture and organizational performance as the key for a successful business venture. Improved organizational performance is the result of more developed internal resources and competitive advantage. Local culture is a very important element to develop a competitive advantage (Barney and Clark, 2007). Local culture is local wisdom. Studies focusing on the local wisdom theory (Clayton and Birren, 1980; Robinson, 1990; Sternberg, 2000) use qualitative methods. Quantitative method is the approach used to explain the relationship between humanistic values and the performance of the SMEs (competitive advantage) based on statistical analysis. Therefore, the originality of this study is a mixed approach between quantitative and qualitative with interpretive-based approaches.


2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ankur Mittal ◽  
Anshul Jain ◽  
Tarun Dhingra

Learning outcomes The instructor can use this for covering the concept of competitive advantage and valuation. To explore the relationship between superior profitability with business model and identify the source of competitive advantage. Determining the value of business through discounted cash flow (DCF) approach. Case overview/synopsis This case is based on the growth path of a retail chain company, DMart (Avenue Supermarket Private Limited), in the rapidly growing organized retail industry in India. It operates a unique business model that garners significant revenue growth with high profitability. The case covers the competitive advantages of DMart with respect to its peers and its valuation through the DCF model. Complexity academic level The case is suitable for teaching basic courses in corporate valuation and strategy at the post-graduate level. The following courses can also make use of this case: financial management, corporate finance and strategic management in emerging markets. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 1: Accounting and Finance.


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.


2017 ◽  
Vol 24 (5) ◽  
pp. 1309-1336 ◽  
Author(s):  
Sarang Joshi ◽  
Manoj Kharat ◽  
Rakesh Raut ◽  
Sachin Kamble ◽  
Sheetal Kamble

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julio César Acosta-Prado ◽  
Arnold Alejandro Tafur-Mendoza ◽  
Rodrigo Arturo Zárate-Torres ◽  
Geli Mercedes Pautt-Torres

Purpose Job satisfaction and leadership behavior are recognized by the organizational world as fundamental elements that influence the overall effectiveness of a company. However, as the first step for an adequate intervention on any of these variables, it is the evaluation. The purpose of this paper is to develop and validate two brief measures on job satisfaction and leadership behavior. Design/methodology/approach The sample was made up of 246 workers located in Bogota, Colombia. The study was an instrumental research. To collect validity evidence, the internal structure and the relationship with other variables were used. For the evaluation of equity, the differential item functioning was analyzed according to the sex of the participants. Reliability was estimated through the ordinal omega coefficient. Findings Both brief measures presented a unifactorial structure, where job satisfaction was measured by five items and leadership behavior by four items. On the other hand, only one item of leadership behavior showed differential item functioning; however, its magnitude was trivial. Also, convergent and discriminant evidence was provided for both measures, and the reliability levels were adequate. Originality/value The measures developed represents an effort to briefly measure job satisfaction and leadership behavior. Likewise, it constitutes two of the few instruments to measure job satisfaction and leadership behavior in Latin American, representing a good alternative for the measurement of the referred constructs in an organizational context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.


2015 ◽  
Vol 27 (5) ◽  
pp. 714-738 ◽  
Author(s):  
Jorge Pereira-Moliner ◽  
Xavier Font ◽  
Juan José Tarí ◽  
Jose F. Molina-Azorin ◽  
Maria D. Lopez-Gamero ◽  
...  

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advantages and business performance. Environmental management systems are more developed in higher category, chain-affiliated and larger hotels. This could be due to having more resources to develop their environmental capability. The environmental proactivity scale employed in this study is presented as a reference measure for hotel managers to benchmark their current practices and implement environmental improvements. Originality/value – First, measuring environmental proactivity using four managerial systems (operative, information, strategic and technical) is innovative and provides a more detailed approach to measuring environmental proactivity. Second, demonstrating a double association between environmental proactivity and performance provides fresh insights into the relationship between these variables.


2018 ◽  
Vol 37 (2) ◽  
pp. 114-126 ◽  
Author(s):  
Nurdjannah Hamid

Purpose The purpose of this paper is to analyze the balanced scorecard (BSC) for measuring the competitive advantage of infrastructure assets of state-owned port in Indonesia: Pelindo IV, Makassar, Indonesia. Design/methodology/approach This investigation adopts an explanatory and exploratory qualitative case study method to analyze the effectiveness of the BSC over the strategy management processes. For data collection, the researchers used semi-structured interviews, direct observation and document collection. Data collection was made for a six-month period, which allowed deep knowledge to be gained of the culture and management methods used in Pelindo IV Makassar Branch. Other data collected refer to the company’s documentation and reporting of online media publications. Detailed interview data were the main data sources, allowing the authors to obtain a detailed and holistic understanding of the experience, opinions, and attitudes of the interviewees. Interviews focus on asset management to determine the relationship between various factors. This study adopts an ideal BSC principle (four perspectives) in order to develop a strategic map for infrastructure assets of Pelindo IV. Findings The results showed that the management performance of Pelindo IV in the financial sector over the next five years was expected to increase by 3.5 times with the business profit reaching an amount of Rp.1.64 trillium in 2017. In the next five years, the target of the customer’s perspective set was zero complaints and zero claim with waiting time meeting the ideal standard, which is a maximum of one-hour service, and the number of containers were expected to witness an average growth of 30 percent per year; the growth ship traffic visit history showed that the flow of goods increased by 4 percent and the number of passengers was targeted to grow up to 30 percent. A historical growth rate of 6 percent was also expected both for the human resources and personnel scout. Originality/value In this paper, the Sobel test was used to test the significance of a mediation effect and balanced scorecard was used for measuring competitive advantage of infrastructure assets of state-owned ports in Indonesia. Previously, no research has been undertaken to examine the relationship between the location of the study and competitive advantage of infrastructure assets in the context of PELINDO IV, Makassar branch, Indonesia.


2018 ◽  
Vol 60 (2) ◽  
pp. 386-401
Author(s):  
Nurdjanah Hamid

Purpose This paper aims to investigate the factor analysis for balanced scorecard (BSC) as measuring competitive advantage of infrastructure assets of owned state ports in Indonesia: Pelindo IV, Makassar, Indonesia. Design/methodology/approach This investigation adopts an explanatory and an exploratory qualitative case study method to analyze the effectiveness of BSC over the strategy management processes. For data collection, the researchers have used semi-structured interviews, direct observation and document collection. Data collection was made during a six-month period, which allowed gaining of deep knowledge on the culture and management methods used in alpha. Other data collected refer to the company’s documentation and reporting of online media publications. Detailed interview data are the main data sources, which allow obtaining of a detailed and holistic understanding of the experience, opinions and attitudes of the interviewees. Interviews focus on asset management to determine the relationship between various factors. This study adopts ideal BSC principle (four perspectives) to develop strategic map for infrastructure asset of Pelindo IV. Analysis tools using factor analysis for the indicators (financial, customer, learning-growth and internal process) measure the competitive advantages. The data for factor analysis from the perception of each stakeholder using questionnaire are collected. Findings The competitive advantages of Pelindo IV depend on 81.2 per cent from financial perspective, customer perspective, internal process perspective and learning perspective, and 18.2 per cent from the other factor. The result of measurement model of competitive advantage in Figure 2 is significantly (p-value < 0.05) measured by financial perspective performance, customer perspective performance, internal process perspective performance and learning perspective performance. On the basis of the highest coefficient loading factor, it can be shown that the most powerful competitive advantages are measured by learning perspective. The high value of competitive advantage of Pelindo IV, Makassar, Indonesia, is especially seen from the learning perspective performance. The order result of BSC for measuring the competitive advantages is as follows: learning perspective performance, financial perspective performance, customer perspective performance and internal process perspective performance. Originality/value Originality of this study looks at the following three points: first, the measurement competitive advantages. Previous studies used measurements of cost leadership strategy, differential strategy and focus strategy as competitive advantages measuring (Porter, 1985; Warf and Stutz, 2007; Clulow et al., 2003). This study uses BSCs with four indicators (financial perspective result, customer perspective result, internal process perspective result and learning perspective). Second, on the other hand, several studies have investigated the BSCs as performance measurement (Ozturk and Coskun, 2014; Malgwi and Dahiru, 2014; Binden et al., 2014). Third, this study uses the factor analysis to measure the competitive advantage by BSCs, which is different from the previous study analysis.


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