scholarly journals The Legitimacy of Clustered Firms: A Dynamic Perspective

2020 ◽  
Vol 10 (2) ◽  
pp. 145-166
Author(s):  
Sze-Ting Chen ◽  
◽  
Ren-Cheng Zhang ◽  
Kai Yin Allison Haga
Keyword(s):  
Competitive Advantage ◽  
Industrial Structure ◽  
Environmental Changes ◽  
Empirical Studies ◽  
Absorption Capacity ◽  
Competitive Advantages ◽  
Institutional Legitimacy ◽  
Dynamic Perspective ◽  
Positive Effect ◽  
Gain Access

A country’s competitive advantage is often characterized on a specific industry in which firms are drastically inclined to clustering together. The previous literature has limited discussion on how the clustered firms through constantly renovate their own abilities and by complying with the institutional legitimacy to gain recognition and support among the other members of the cluster so that they can gain access to cluster’s resources to create and maintain its competitive advantage. Although there are researches focusing on how industrial structure help clustered firms to generate competitive advantages, some empirical studies show that in a fast-changing environment, firms usually fail to adapt to sudden policy or technological changes. Thus, based on dynamic absorption capacity and institutional legitimacy, this study seeks to explore how the clustered firms absorb, learn, integrate and exploit new abilities continuously, as well as develop and utilize external knowledge and capabilities to adapt to rapid environmental changes. In addition, emerging economies have attracted an increasing amount of attention because of rapidly expanding economies and rapid-growth markets provide tremendous business opportunities, especially the China which affects many countries’ economies in the word. The results of this study express that the dynamic absorptive capabilities have positive effect on a clustered firm’s performance, but if a clustered firm always conform to institutional legitimacy which will result in performance dilemma, which is different from other previous research.

Driving the internet and e-business technologies to generate a competitive advantage in emerging markets

2019 ◽  
Vol 33 (2) ◽  
pp. 389-423
Author(s):  
Gamal Mohamed Shehata ◽  
Mohammed A. Montash
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Quantitative Research ◽  
Emerging Market ◽  
Empirical Studies ◽  
The Internet ◽  
Competitive Advantages ◽  
Mena Region ◽  
Content Type ◽  
Major Market

Purpose The purpose of this paper is to develop and empirically examine a comprehensive model that attempts to identify the factors that explain competitive advantage of implementing electronic business (e-business) in an emerging market. It seeks to fulfill an inevitable lack of conducting rigorous and intensive empirical studies on the Middle East and North Africa (MENA) region in which the internet use and e-business applications are on the rise. Design/methodology/approach This research is descriptive in nature where a quantitative research methodology is deployed. Data are collected using both interviews and e-survey for a sample of 302 Egyptian companies serving in diverse industries. A multivariate partial least squares technique is employed to analyze the collected data. Findings This study explores various e-business modes and applications widely employed in the MENA region. It also addresses a set of e-business-driven competitive advantages that are mainly generated from supportive ICT environment, major market forces and strategic opportunities, and at last, from electronically driven customers’ relationship initiatives. A number of e-business barriers are claimed to moderate the relationship between those forces and the resulting competitive advantages. Research limitations/implications Although this research main framework incorporates important variables based on theoretical and empirical foundations, integrating other factors may extend understanding of how these factors, independently and/or interactively, explain the adoption of e-business and its merit to create distinctive competitive advantage. Practical implications This work helps managers and e-business experts alike to comprehend the ways through which firms target the applications of e-business technologies to realize a competitive edge in MENA region. It also helps practitioners and professionals comprehend the interrelationship between the type of forces drive e-business based competitive position and key barriers that deteriorate such a connection in emerging markets. Originality/value A model that enables scholars to better understanding the e-business phenomenon in MENA market is developed and validated. This model rests on e-business experts’ perspectives, reflections and it is evidently substantiated by past works in the areas.

The Effect of Dynamic Capability for the Formation of Competitive Advantage to Achieve Firm’s Performance (Empirical Study on Indonesian Credit Co-operatives)

2015 ◽  
Vol 21 (4) ◽  
pp. 809-813 ◽  
Author(s):  
Anna Astrid Susanti ◽  
Muhtosim Arief
Keyword(s):  
Economic Development ◽  
Empirical Study ◽  
Competitive Advantage ◽  
Empirical Research ◽  
Dynamic Capabilities ◽  
Environmental Changes ◽  
Empirical Studies ◽  
Dynamic Capability ◽  
Unique Character ◽  
The Right

The co-operative plays an important role in Indonesia’s economic development since it can improve people’s welfare and support SMEs through its unique character, which is a combination of the economic and social character. As an enterprise, co-operative is not immune to environmental changes. Therefore co-operative must be able to compete with other industries to reach the best performance in globalization era. The capability to cope with environmental pressure is known as dynamic capability. Research on the implementation of dynamic capabilities, however, only focus on conceptual discussions and empirical studies are still limited, especially in co-operatives. This research is proposed to fill the gap by conducting the empirical research, in order to examine the effect of dynamic capabilities for the formation of competitive advantage to achieve co-operatives’ performance in terms of economic and social performances. The result shows that dynamic capability could be implemented in Indonesian credit co-operatives to establish a competitive advantage and ultimately be used to achieve a better firm’s performances. However, dynamic capability cannot be used directly to achieve a better performance. The firms must choose the right and superior capability to compete with their competitors.

Night markets: entrepreneurship and achieving competitive advantage

2016 ◽  
Vol 28 (11) ◽  
pp. 2374-2398 ◽  
Author(s):  
Chih-Hsing Sam Liu ◽  
Yen-Po Fang
Keyword(s):  
Competitive Advantage ◽  
Risk Taking ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Competitive Aggressiveness ◽  
Positive Effect ◽  
Night Markets

Purpose This paper aims to propose a new model and examine how night market entrepreneurs have achieved a competitive advantage in strongly competitive markets. Design/methodology/approach Two statistics methods, multiple regression analysis and structural equation models (SEM), were used to test the hypotheses for a sample of 346 vendor cases. Findings The results indicate that competitive aggressiveness and being proactive are positively related to risk-taking among night market vendors, which, in turn, has a positive effect on innovativeness. Further, the findings also indicate that risk-taking positively influences innovativeness and, in a mediating role, also affects competitive advantages through innovativeness. Practical implications Results of this study suggest that if night market entrepreneurs demonstrate innovativeness, positively develop new products and new services and attract customers to buy them, then they will have unique and attractiveness in the night markets, thus giving themselves relative competitive advantage. Originality/value This research is the first comprehensive examination of entrepreneurship among night market entrepreneurs to study the competitive advantages of different facets, which may provide a benchmark for future studies.

scholarly journals PENENTU KEUNGGULAN BERSAING PADA UMKM : APAKAH KOMPETENSI DIGITAL DAN ORIENTASI KEWIRAUSAHAAN PENTING ?

AdBispreneur ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 63
Author(s):  
Sofi Maya Sari ◽  
Yunizar Yunizar ◽  
Dina Sartika
Keyword(s):  
Human Resources ◽  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Digital Competence ◽  
Technological Developments ◽  
Medium Enterprises ◽  
Positive Effect

One of the efforts to improve the competitive advantage in rapid technological developments, especially in Micro, Small and Medium Enterprises (MSMEs), is to maximize the potential of human resources. However, at this time human resources MSMEs’owners are not acceptable in digital competence and low ability to improve entrepreneurial orientation. The role of human resources consisting of digital competence and entrepreneurial orientation leads to the competitive advantages of micro, small and medium enterprises. The study used a quantitative approach, using multiple regression analyses to analyze a questionnaire sample of 180 micros, small, and medium enterprises manufacture of food products in Bandung City. Results showed digital competence and entrepreneurial orientation have positive effect on competitive advantage. Salah satu usaha untuk dapat meningkatkan keunggulan bersaing ditengah perkembangan teknologi yang pesat khususnya pada Usaha Mikro, Kecil, dan Menengah (UMKM) adalah dengan memaksimalkan potensi dari sumber daya manusia yang dimilikinya. Namun begitu saat ini sumber daya manusia atau pelaku usaha mikro, kecil dan menengah kurang akseptabel dalam penguasaan kompetensi digital serta rendahnya kemampuan dalam meningkatkan sikap orientasi kewirausahaannya. Peranan sumber daya manusia yang terdiri dari kompetensi digital dan orientasi kewirausahaan ini mengarah kepada keunggulan bersaing usaha mikro, kecil, dan menengah. Penelitian ini menggunakan pendekatan kuantitatif, dengan menggunakan analisis regresi berganda untuk menganalisis sampel kuisioner sebanyak 180 pelaku UMKM industri pengolahan makanan di Kota Bandung. Hasil penelitian mengungkapkan bahwa kompetensi digital dan orientasi kewirausahaan berpengaruh positif terhadap keunggulan bersaing.

scholarly journals Model of Marketing Innovative Strategies in International Entrepreneurship: A Global Business Environment

2016 ◽  
Vol 12 (10) ◽  
pp. 76
Author(s):  
Bahram Sattari ◽  
Javad Mehrabi
Keyword(s):  
Competitive Advantage ◽  
Industrial Structure ◽  
International Entrepreneurship ◽  
Economic Structure ◽  
Business Environment ◽  
Competitive Advantages ◽  
Global Business ◽  
Innovative Strategies ◽  
Tehran Province ◽  
The Impact

<p>Today small and medium sized businesses are considered the principal factor for the growth of the industrial structure of many countries. To developing countries that are attempting to revive their economic structure, these industries are of great importance. Today, with the growth and advancement of technologies, the impact of cutting edge technologies such as information technology on the business environment cannot be overlooked. The use of innovative marketing helps create value. The purpose of this paper is to investigate innovative marketing and competitive advantages of small and middle sized businesses, with regard to the innovative approaches and the company's unique features. The statistical group of this study included 300 subjects working in the companies that are active in manufacturing disposable containers in Tehran province. The results of the study indicated that innovative marketing has impacts on the companies' competitive advantage. The unique features of the companies have no impacts on obtaining competitive advantage, but it affects innovative marketing.</p>

scholarly journals Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia

2018 ◽  
Vol 12 (3) ◽  
pp. 299-321 ◽  
Author(s):  
Noor Raihani Zainol ◽  
Abdullah Al Mamun
Keyword(s):  
Competitive Advantage ◽  
Opportunity Recognition ◽  
Equation Modeling ◽  
Competitive Advantages ◽  
Significant Positive Effect ◽  
Development Programs ◽  
Content Type ◽  
Entrepreneurial Competencies ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to examine the effect of entrepreneurial competencies on competitive advantage and to investigate the effect of competitive advantage on the performance of informal microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Design/methodology/approach This study used a cross-sectional design and collected quantitative data from 384 informal women micro-entrepreneurs operating in “night markets” in Kelantan, Malaysia. Findings The finding of the analysis using variance-based structural equation modeling indicated that commitment competency, conceptual competency, organizing competency and opportunity recognition competency have a significant positive effect on competitive advantages, and competitive advantages have a significant positive effect on the performance of microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Research limitations/implications The development programs and policies should focus on improving the competencies, i.e. commitment competency, conceptual competency, organizing competency and opportunity recognition competency to improve the socioeconomic condition of low-income households in Malaysia. Informal women micro-entrepreneurs should, therefore, focus on value creating strategies to avoid potential competitors from duplicating the benefits of their strategy. This will result in a sustainable competitive advantage of microenterprises in Malaysia. Originality/value This study puts forward and tests the effect of entrepreneurial competencies on competitive advantages and performance of informal women micro-entrepreneurs in Kelantan, Malaysia, which provides a foundation for the design and implementation of development programs and policies that promote entrepreneurial activities in Malaysia.

scholarly journals Analysis Effect of Resources and Dynamic Capabilities to Sustainable Competitive Advantages and It’s Implications to the Firms Performance

2017 ◽  
Vol 10 (10) ◽  
pp. 209
Author(s):  
Supriyadi Supriyadi
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Company Performance ◽  
Competitive Advantages ◽  
Sustainable Competitive Advantage ◽  
Resources And Capabilities ◽  
Sustainable Competitive Advantages ◽  
Positive Effect ◽  
Dominant Influence

The objective of this research are to find out the effect : (1). resources on sustainable competitive advantages; (2). dynamic capability to continuous competitive advantage; (3). resources on company performance; (4). dynamic capability to company performance; (5). sustainable competitive advantage on company performance; (6). dynamic resources and capabilities on sustainable competitive advantages ; (7). dynamic resources and capabilities as well as the competitive advantage of sustainable. sample unit in this research using survey 69 companies which producing coffee in lampung, with interview to manager and director with total number of responden 345 respondents and all hypothesis accepted and positive effect to this research. the conclusion of this reserach are : (1). resources affect sustainable competitive advantage; (2). dynamic capabilities affect sustainable competitive advantage; (3). resources affect the firm's performance; (4). dynamic capability affects the firm's performance; (5). sustainable competitive advantage affects the company's performance; (6). resources and dynamic capabilities together affect sustainable competitive advantage; (7). resources, dynamic capabilities and sustainable competitive advantages jointly affect the company's performance the effect of resource, dynamic capability and sustainable competitive advantage simultaneously on company performance is positive and significant, with sustainable competitive advantage variables having the most dominant influence on firm performance. this shows that positively improving the effectiveness of resources, dynamic capabilities and sustainable competitive advantage will result in improved corporate performance.

scholarly journals Development of the intellectual capital of an enterprise as a competitive advantage in production management

2021 ◽  
Vol 188 (3-4) ◽  
pp. 134-140
Author(s):  
Olga Voronkova ◽  
◽  
Olga Stepanenko ◽  
Nazim Balamirzoev ◽  
Svetlana Makarenko ◽  
...  
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Production Management ◽  
Intangible Assets ◽  
Empirical Studies ◽  
Theoretical Studies ◽  
Competitive Advantages ◽  
Industrial Management ◽  
Key Factor ◽  
Strategic Success

The main purpose of the study is to investigate the development of the intellectual capital of an enterprise as a competitive advantage of industrial management. Taking into consideration theoretical studies and overviews of the experience of Russian firms today, it can be stated that Russian businesses are primarily based on the current conditions for the survival of companies, rather than on generating potential business opportunities, which does not lead to the creation of intangible assets and the formation of intellectual capital. At the same time, the majority of managers share the opinion of scientists that the formation and creation of the intellectual capital of an organization is a key factor in ensuring the company’s strategic success. A business that pays more attention to the growth of intellectual resources and production of intangible assets has greater competitive advantages. Based on the findings of different empirical studies, it can be argued that the organization’s management perceives intellectual capital as a component that ensures success, competitive advantage, and, ultimately, the company’s economic development.

Estimation of welfare costs of inflation: The case of Russia

2019 ◽  
pp. 55-69 ◽  
Author(s):  
Sergey M. Drobyshevskiy ◽  
Natalia V. Makeeva ◽  
Elena V. Sinelnikova-Muryleva ◽  
Pavel V. Trunin
Keyword(s):  
Inflation Targeting ◽  
Empirical Studies ◽  
Welfare Costs ◽  
Economic Agents ◽  
Academic Literature ◽  
Russian Economy ◽  
Theoretical Approaches ◽  
Real Gdp ◽  
Quantitative Estimates ◽  
Positive Effect

This paper is devoted to the estimation of welfare costs of inflation, taking into account the peculiarities of the Russian economy. Theoretical approaches that are used in the literature to analyze the costs of inflation are discussed in the paper. It also provides an overview of the empirical studies of this topic. Research found in academic literature shows that the results of quantitative estimates are extremely sensitive to the choice of the functional form of the money demand equation, as well as to assumptions that are made to simplify the analysis, some of which do not fit Russian data. As a result, we have modified the standard approaches to estimating welfare costs of inflation, taking into account the monetization growth in Russia, and provide quantitative estimates of the magnitude of welfare costs of inflation. The results indicate a significant gain for economic agents in terms of real GDP with a decrease in inflation, which is regarded as a positive effect from the inflation targeting policy.

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

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

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.

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