Explicating the business model from a knowledge-based view: nature, structure, imitability and competitive advantage erosion

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Chen ◽  
Luyao Wang ◽  
Guannan Qu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Knowledge Structure ◽  
Firm Boundaries ◽  
Ceteris Paribus ◽  
Content Type ◽  
Knowledge Based ◽  
Strategic Value ◽  
Structured Knowledge ◽  
The Relationship

Purpose The purpose of this paper is to conceptualize the business model (BM) from a knowledge-based view (KBV), to interpret its nature and knowledge structure and to investigate the relationship between its imitability and the erosion of firm’s competitive advantage. Design/methodology/approach Based on a systematic literature review, this study builds an integrated framework to explicate the nature and structure of the BM from a KBV. Moreover, on the analysis of two contrasting cases, the argument concerning the relationship between BM imitability and its strategic value is proposed, analyzed and supported. Findings The main finding of this study is that a BM can be viewed as a structured knowledge cluster that contains explicit and implicit parts. Its imitation is a dynamic process of knowledge diffusion across firm boundaries. Ceteris paribus, with a lower proportion of implicit knowledge, a BM is more likely to be imitated and the adopter’s competitive advantage is more likely to be eroded, and vice versa. Practical implications The proposed framework could provide managers with a deeper understanding of the nature and structure of the BM and help potential adopters develop a successful entry strategy by avoiding BMs that seem profitable but are incapable of maintaining competitive advantage. Originality/value As a complement to previous studies, the research conceptualizes the BM as a “structured knowledge cluster” to explicate its nature and knowledge structure from a KBV. The implicit part of the BM is explored, and its importance for the adopter’s competitive advantage is discussed and verified.

DMart an ace in India’s retail space

2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ankur Mittal ◽  
Anshul Jain ◽  
Tarun Dhingra
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Financial Management ◽  
Competitive Advantages ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Revenue Growth ◽  
Retail Chain ◽  
Academic Level ◽  
The Relationship

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.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

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.

scholarly journals BİLGİ TABANLI YENİ EKONOMİDE BİLGİ YÖNETİMİ VE YENİLİKÇİ İŞLETMELER

2018 ◽  
Vol 6 (3) ◽  
Author(s):  
Saadet Ela PELENK
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Information Acquisition ◽  
Organizational Innovation ◽  
Continuous Learning ◽  
Significant Positive Effect ◽  
Technological Changes ◽  
Knowledge Based ◽  
The Relationship ◽  
Positive Effect

Economic, social, cultural and technological changes increase the importance of information. It is possible for organizations to adapt to change, by sharing up-to-date information. Knowledge-based new economies which consist dynamic market conditions, network-based organizational structure, continuous learning, digitalization, innovations and innovative businesses as competitive advantage source, corporate knowledge management has a strategic importance. Th eaim of this research is to determine the relationship among innovation and sub-dimensions of knowledge management as "information acquisition” and “education and communication". For this purpose, a survey was conducted with 120 employees of 3 innovative organizations that operate in various sectors. According to the results of the research, the acquisition of information has a significant positive effect on organizational innovation (β=0,29; t=3,10; p<0,05); education –training and communication variables have no significant effect on organizational innovation (p>0,05).

Use balanced scorecard for measuring competitive advantage of infrastructure assets of state-owned ports in Indonesia

2018 ◽  
Vol 37 (2) ◽  
pp. 114-126 ◽  
Author(s):  
Nurdjannah Hamid
Keyword(s):  
Data Collection ◽  
Competitive Advantage ◽  
Balanced Scorecard ◽  
Asset Management ◽  
Mediation Effect ◽  
Structured Interviews ◽  
Average Growth ◽  
Content Type ◽  
Holistic Understanding ◽  
The Relationship

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.

The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia

2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Quantitative Methods ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Leadership Orientation ◽  
Content Type ◽  
Typical Food ◽  
Medium Enterprises ◽  
The Relationship

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.

scholarly journals Organizational learning capability and open innovation

2018 ◽  
Vol 56 (6) ◽  
pp. 1217-1231 ◽  
Author(s):  
Marta Peris-Ortiz ◽  
Carlos Alberto Devece-Carañana ◽  
Antonio Navarro-Garcia
Keyword(s):  
Organizational Learning ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Qualitative Comparative Analysis ◽  
Incremental Innovation ◽  
Learning Capability ◽  
Content Type ◽  
Knowledge Based ◽  
Learning Factors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between open innovation (OI) and radical and incremental innovation success in knowledge-based companies. The company’s human resources and organizational learning capability are considered as the fundamental nexus of this relationship.Design/methodology/approachAt the conceptual level, the paper analyzes the relationships between dynamic capabilities and OI and between OI and innovation success. Fuzzy-set qualitative comparative analysis (fsQCA) was used to study how innovation is implemented in 29 companies.FindingsFsQCA identifies combinations of factors that facilitate incremental innovations. These combinations reveal the path to implementing company policies that enable incremental innovation and foster radical innovation.Research limitations/implicationsThe nature of the study sample means that the findings should be generalized with precaution. The most valuable implication is the identification of combinations of factors that help companies manage innovation.Originality/valueScarce literature links organizational learning factors and OI to different types of innovation. The use of fsQCA to analyze the cases also marks a breakthrough in the innovation literature.

How does open innovation affect firms’ innovative performance

2018 ◽  
Vol 12 (4) ◽  
pp. 720-740 ◽  
Author(s):  
Huiping Zhou ◽  
Yanhong Yao ◽  
Huanhuan Chen
Keyword(s):  
Open Innovation ◽  
Hierarchical Regression ◽  
Moderating Effects ◽  
Content Type ◽  
Innovative Performance ◽  
Knowledge Based ◽  
Opportunistic Behaviour ◽  
Proposed Model ◽  
New Finding ◽  
The Relationship

Purpose This paper aims to explore the direct effects of open innovation (OI) on firms’ innovative performance, and to examine the moderating effects of knowledge attributes, including knowledge distance, knowledge embeddedness and partner opportunism on this relationship. Design/methodology/approach Survey data of 247 samples from China were used to test the proposed model through hierarchical regression analysis. Findings The findings indicate that the dimensions of OI are positively related to innovative performance. The results also reveal that knowledge distance positively moderates the relationship between inbound OI and innovative performance, whereas knowledge embeddedness negatively affects that relationship. Knowledge embeddedness negatively affects the relationship between inbound OI and innovative performance, whereas knowledge distance positively moderates that relationship. Thus, a new finding is proposed that knowledge attributes could align effectively with specific OI type to achieve superior innovation outcomes. In addition, the empirical results suggest that partner opportunism plays a negative moderating role on the relationship between outbound OI and innovative performance. Originality/value The proposed view that a firm’s innovation outputs will be superior when its knowledge attributes effectively align with OI enriches studies of the OI context and expands the literature of both the resource-based view and the knowledge-based view. Furthermore, this study provides insights into how OI benefits can be influenced by external contexts from the perspective of partners’ opportunistic behaviour.

Managerial innovative capabilities, competitive advantage and performance of healthcare sector during Covid-19 pandemic period

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Demetris Vrontis ◽  
Hani El Chaarani ◽  
Zouhour El Abiad ◽  
Sam El Nemar ◽  
Alissar Yassine Haddad
Keyword(s):  
Health Care ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Health Care Sector ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Capabilities ◽  
Managerial Capabilities ◽  
The Relationship

Purpose The purpose of this paper is to reveal the impact of dynamic managerial innovative capabilities on the competitive advantage (CA), financial performance (FP) and non-financial performance (NFP) of the health-care sector during the very turbulent Covid-19 pandemic period. The focus is on human behavior and personnel interaction in the hospitals that receive Covid-19 cases. Design/methodology/approach Data for this research was collected from the medical sector in Lebanon. The authors approached 14 public hospitals and 60 private hospitals for the study and only 48 hospitals (total of 284 respondents) accepted to complete the survey and provide data using a structured questionnaire. Findings This study reveals the moderating impact of CA on the relationship between dynamic managerial innovative capabilities and the performance of the health-care sector. Based on 48 Lebanese health-care centers during the Covid-19 pandemic, the results of the structural equation modeling model indicate that dynamic managerial innovative practices positively impact on CA and NFP. The results also reveal that CA has a moderating effect on the relationship between dynamic managerial innovative practices and NFP. Practical implications This study does not reveal any direct or indirect relationship between managerial capabilities and FP during the pandemic. Originality/value As the world deals with the Covid-19 pandemic, the health-care sector needs new approaches and methods for confronting the constantly evolving and turbulent environment. This study examines how health-care leaders are dealing with these dynamic challenges and tests a three-dimensional SEM model of dynamic managerial capabilities (sensing, seizing and reconfiguration) that impact CA.

An empirical study of the relationship between inclusive leadership and business model innovation

2021 ◽  
Vol 42 (3) ◽  
pp. 480-494
Author(s):  
Yangchun Fang ◽  
Xinxing Dai ◽  
Xudong Zhang
Keyword(s):  
Employee Engagement ◽  
Business Model ◽  
Primary Source ◽  
Boundary Spanning ◽  
Business Model Innovation ◽  
Zhejiang Province ◽  
Inclusive Leadership ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

PurposeTo better understand factors that lead to business model innovation (BMI) in organizations, this study argues that inclusive leadership is the primary source that motivates employee engagement in boundary-spanning activities, which fosters BMI by generating and integrating employee knowledge through boundary-spanning exploration.Design/methodology/approachThis paper analyzes the relationships between inclusive leadership, boundary-spanning exploration and BMI to discover how they influence each other. This is achieved by a survey of more than 30 enterprises in Zhejiang Province, China. The survey data are analyzed using SPSS.FindingsInclusive leaders who display characteristics of openness, accessibility and availability have a positive effect on BMI and boundary-spanning exploration; openness and accessibility have more significant positive effect on BMI and boundary-spanning exploration.Research limitations/implicationsBecause this study covers only in Zhejiang Province, in China, the findings may not be easily generalizable to other contexts. Other factors, such as organizational structure and contextual characteristics, could also be added as antecedents in a future investigation. Moreover, the scales could be revised more suitable for China in the future.Practical implicationsThe empirical findings can be used as guidelines for firms seeking to take advantage of inclusive leadership and to help firms motivate their employees to engage in boundary-spanning exploration to acquire, generate and integrate knowledge from diverse sources to promote BMI.Originality/valueThis study provides insights that will be of value by adding to the theoretical foundation of our understanding of the antecedents to firms' BMI. This study argues that employees' boundary-spanning exploration is important to BMI as well. Inclusive leadership is crucial to stimulate boundary-spanning exploration by employees. Therefore, how to encourage inclusive leadership in firms is well worth examining.

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