scholarly journals Open innovation in the context of organisational strategy

2019 ◽  
Vol 11 (3) ◽  
pp. 86-95 ◽  
Author(s):  
Katarzyna Walecka-Jankowska ◽  
Joanna Zimmer
Keyword(s):  
Open Innovation ◽  
Corporate Strategy ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Operational Range ◽  
The Relationship ◽  
Cost Leadership Strategy ◽  
Innovation Processes

Abstract The paper aims to analyse the relationship between different types of corporate strategy and open innovation in the contexts of the age, size and the operational range of enterprises. The research targeted companies in Poland that were surveyed from January to April, using traditional and electronic forms of a questionnaire. The questionnaire was developed based on a 5-point Likert scale. The level of “openness” of innovation processes in an enterprise was determined according to a 3-point scale, namely, a closed innovator, a hybrid or semi-open innovator, and an open innovator. The strategy implemented by an enterprise was classed into main three types used to achieve a competitive advantage, i.e. cost leadership, differentiation or diversification. There is a strong correlation between open innovations, the cost leadership strategy and the differentiation strategy (negative correlation). The relationship between the age, size and the range of a company and the opening of innovative processes was also observed. The research aims to fill the knowledge gap existing in the literature regarding the links between a particular type of strategy and the opening of innovation processes.

scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

2019 ◽  
Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş
Keyword(s):  
Production Process ◽  
Local Market ◽  
Competitive Strategies ◽  
Strategy Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

scholarly journals The Effects of Business Strategy and Inventory on the Relationship between Sales Manipulation and Future Profitability

2019 ◽  
Vol 11 (8) ◽  
pp. 2377
Author(s):  
Hwa Deuk Yi ◽  
Sambock Park ◽  
Jonghyun Kim
Keyword(s):  
Product Differentiation ◽  
Business Strategy ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Real Activities Manipulation ◽  
The Relationship ◽  
Cost Leadership Strategy

Many researchers have found that real activities manipulation undermines future profitability, because it deviates from normal operating activities. We are interested in sales manipulation, which is one type of real activities manipulation relating to corporate sustainability. First, we empirically examine whether the effects of sales manipulation on future profitability differ according to the strategies of a firm. Next, we divide sales manipulation as a type of real activities manipulation and optimal sales manipulation and then examine how the two types of sales manipulation affect future profitability. Finally, we examine how the effects of optimal sales manipulation on future profitability differ according to the firm’s strategies. The empirical findings show that the association between sales manipulation and future profitability is more negative (−) for a product differentiation strategy than for a cost leadership strategy. Further, the sales manipulation performed by firms with a high proportion of the starting inventory and a decrease in the inventory during the current year has a positive (+) impact on future profitability. Our results contribute to the literature on business strategy by presenting evidence that core management activities are related to future financial performance, according to the business strategy. In addition, our research shows that sales manipulation can turn into an optimal operating activity, depending on the firm’s situation.

scholarly journals PENGARUH PEMILIHAN STRATEGI DEFERENSIASI TERHADAP KINERJA KEUANGAN1 (Studi Empiris Pada Perusahaan Manufaktur Food & Beverages terdaftar di BEI)

2017 ◽  
Vol 20 (1) ◽  
pp. 104
Author(s):  
Antonius Singgih Setiawan
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Cost Leadership Strategy

Penelitian ini bertujuan menguji apakah strategi deferensiasi akan memberikan kinerja keuangan yang lebih baik dari pada strategi cost leadership. Menggunakan 85 sampel pengamatan dari 17 perusahaan manufaktur Food & Beverages terdaftar di BEI 2009–2013, hipotesis penelitian diuji menggunakan analisis regreasi. Hasil penelitian menunjukkan bahwa perusahaan yang memilih strategi defensiasi akan menghasilkan kinerja keuangan yang lebih baik dari pada perusahaan yang menerapkan strategi cost leadership.This study aims to test whether differentiation strategy will deliver a better financial performance than cost leadership strategy. Using a sample of 85 observations of 17 Food & Beverages manufacturing companies listed on the Indonesian Stock Exchange from 2009 to 2013, research hypotheses are tested using regresion analysis. The result shows that companies that choose differentiation strategy will produce better financial performance than companies that implement the cost leadership strategy.

scholarly journals An Empirical Study of Strategic Positioning and Production Efficiency

2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
Hsihui Chang ◽  
Guy D. Fernando ◽  
Arindam Tripathy
Keyword(s):  
Production Efficiency ◽  
Competitive Advantages ◽  
Strategic Positioning ◽  
Cost Leadership ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Brand Development ◽  
The Relationship ◽  
Cost Leadership Strategy

We examine the relationship between strategic positioning of firms and their production efficiency. Firms with competitive advantages based on either cost leadership or differentiation are able to outperform their competitors. Firms pursuing a cost leadership strategy seek to be the lowest cost producer, primarily by minimizing inputs for a given level of output, thus concentrating on increasing the efficiency of their production processes. On the other hand, firms that pursue a differentiation strategy rely on innovation, brand development, marketing, and so forth to achieve competitive advantages; therefore such firms do not place high emphasis on production efficiency. Thus the importance of production efficiency for the success of a firm depends on the strategic positioning of the firm. We apply DEA to an archival data for a large sample of publicly listed firms to investigate the importance of production efficiency for firms based on their strategic positioning. We provide empirical evidence that firms pursuing a cost leadership strategy attribute higher importance to production efficiency, while firms pursuing differentiation strategy attribute less importance to production efficiency.

Aligning supply chains with product variety

2019 ◽  
Vol 35 (4) ◽  
pp. 13-15
Keyword(s):  
Supply Chains ◽  
Product Variety ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Pertinent Information ◽  
Alignment Model ◽  
The Relationship ◽  
Cost Leadership Strategy

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper explores the relationship between product variety, the performance of a business, and their supply chains and proposes a strategic alignment model to separate a low product variety cost leadership strategy from a high product variety differentiation strategy. By clarifying the strategic aims of their supply chains, businesses can portray their market offer in a consistent and operationally sustainable way. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

How Competitive Strategies Affect Organizational Structure

2022 ◽  
pp. 271-299
Author(s):  
Muhammed Seyda Akdag ◽  
Yasemin Bal
Keyword(s):  
Technology Development ◽  
Organizational Structures ◽  
Competitive Strategies ◽  
Senior Managers ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategies ◽  
The Relationship ◽  
Cost Leadership Strategy

Organizational structures can change according to the strategy determined by the businesses. The purpose of this chapter is to extend that research by analyzing the relationship between Porter's competitive strategies and Burns and Stalker's structure types. The authors conduct their research on the enterprises in Technology Development Zones in Istanbul, Turkey. One hundred sixty of 5,506 enterprises participated in the research. Then, to search deeper, the authors conducted a qualitative research on the 25 enterprises in Technology Development Zones. Results show that, while the mechanical structure tendency is observed in the enterprises following the cost leadership strategy, the mechanical or organic structure tendency is not observed in the enterprises following the differentiation and focus strategies. Also, according to the interviews, results show that the organizational structures in the enterprises in Technology Development Zones are affected by the size of the organization or the strategic awareness level of the senior managers rather than the competitive strategies.

scholarly journals International Diversification, Product Strategy, And Firm Value:Evidence From Korea

2014 ◽  
Vol 13 (6) ◽  
pp. 1551
Author(s):  
Donseung Choi ◽  
Eunho Cho
Keyword(s):  
Firm Value ◽  
International Diversification ◽  
Sensitivity Analyses ◽  
Product Strategy ◽  
Cost Leadership ◽  
Strategic Fit ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Relationship ◽  
Cost Leadership Strategy

Existing studies showed inconsistent results for the relationship between international diversification (ID) and firm value. Thus, we primarily examine whether each MNCs product strategy moderates the relationship between ID and firm value. The results show that MNCs product strategy moderates the relationship between ID and firm value as measured by Tobins Q. Specifically, a positive relationship exists between ID and firm value in the firm group pursuing a cost leadership strategy, whereas a negative relationship exists between the same variables in the firm group pursuing a differentiation strategy, suggesting that the strategic fit between product strategy and ID is likely an important factor in the relationship between ID and firm value. Our results remain robust after conducting sensitivity analyses using the price-to-book value (PBR) ratio and individual components of composite ID measures. Accordingly, we conclude that a cost leadership strategy of Korean MNCs is more likely to have a competitive advantage in a foreign market than a differentiation strategy. This study primarily contributes to the literature on ID in that it provides the first evidence on the relationship between ID and firm value that takes into account an MNCs product strategy using the strategic fit perspective.

scholarly journals Generic Strategy and Bankruptcy Risk of Nepalese Enterprises

2018 ◽  
Vol 3 ◽  
pp. 25-41
Author(s):  
Dhundi Raj Bhattarai
Keyword(s):  
Firm Strategy ◽  
Z Score ◽  
Bankruptcy Risk ◽  
Cost Leadership ◽  
Book Value ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Administrative Expenses ◽  
The Relationship ◽  
Cost Leadership Strategy

The purpose of this paper is to examine the relationship between firm strategy and bankruptcy risk. The research design consists of descriptive and causal-comparative research designs in order to deal with the various issues raised in this study. In addition, this paper uses the Altman-Z score which combines several measures of performance and risk to come up with a score that denotes the bankruptcy risk inherent in a firm. Secondary data has been used collected from annual audit report of concerned organization of manufacturing and hotel industries from fiscal year 2000/01 to 2014/15. Factor analysis, descriptive statistics, correlation analysis, and regression analysis are different statistical tools that have been used for this study. Further, cost leadership and differentiation strategies has been constructed from selling, general, and administrative expenses scaled by net sales; net sales scaled by cost of goods sold; net sales scaled by net book value of plant and equipment; and net sales scaled by net book value of plant and equipment variables through factor analysis. By regressing Altman-Z score against relevant control variables and proxies for differentiation and cost leadership strategies, this study has evaluated the relationship between bankruptcy risk and firm strategy. The analysis shows that the enterprises adopting higher selling, general and administrative expenses in association with higher gross profit margin have been pursuing differentiation strategy whereas higher investment on property, plant and equipment along with their existing value indicates that they have been following cost leadership strategy. Value of Nepalese enterprises pursuing cost leadership strategy has a positive effect on reducing bankruptcy risk while pursuing differentiation strategy has a negative effect on reducing bankruptcy risk.

scholarly journals Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index

The Winners ◽  
2020 ◽  
Vol 21 (1) ◽  
pp. 35
Author(s):  
Surono Surono ◽  
Tulus Suryanto ◽  
Erike Anggraini
Keyword(s):  
Low Cost ◽  
Relative Price ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Low Cost Strategy ◽  
Quantitative Descriptive ◽  
Unique Item ◽  
The Cost ◽  
Cost Leadership Strategy

The research aimed to examine the effect of cost leadership strategy and differentiation strategy on company’s performance. It was conducted in companies listed in the Jakarta Islamic Index from 2014 to 2018. Purposive sampling was used to obtain samples from 12 companies. Analysis was done by multiple linear regression with the help of the IBM SPSS 23 statistical program for windows with a quantitative descriptive approach. The results show that the cost leadership strategy influences company’s performance compared to differentiation strategy. The implementation of a low-cost strategy is significantly relevant to the condition of people who are sensitive to price and are not much aware about brand products in decision making. The design of a unique item model does not determine success in marketing a product, the relative price offered is quite high and only in certain market segments the product is of public interest. Product quality is defeated by the quantity of goods, people prefer how much goods are obtained than the durability of the products consumed.

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