In examining business problems related to which strategy should be applied in winning the competition game has become an interesting debate over time. There are some advantage theories that have been elaborated by marketing pioneers, including resourceadvantagetheory by Shelby D. Hunt, competitive advantagetheory by Michael E. Porter, and Transient Competitive Advantagetheory by Rita Gunther McGrath. These three theories contribute with insights to different viewpoints of advantage, so that in-depth analyses are necessary in order to create comprehensive literature reviews related to business activities.
In many ways the RBV of the firm and the associated Resource-AdvantageTheory (R-A Theory) of competition are complementary to the industry oriented 80's view - and most authors are at pains to point this out. However, we argue that the R-A Theory in fact questions the most basic and familiar assumptions of how companies compete. For example, the 80's thinking was that strategy is essentially about the fit between the firm and its environment. The '90's view maintains that strategy is all about creating and developing core competencies so that the firm can positively influence its environment. Environment is still important but the successful firm is pro-active, not just reactive.
The purpose of the paper is, therefore, to further develop the study of pricing by expanding the scope of resource-advantagetheory to include the processes and resources that influence how a firm determines prices in return for the customer value it creates. It presents a conceptual model to address the root of the neoclassical limitations whilst providing a more specific conceptualization of R-A theory. Moreover, it proposes a delineation of value creating and value extracting resources, instead of tangible and intangible, as argued by Hunt and Morgan (2003). The structure of the paper is as follows. Firstly, the resource-advantage perspective taken in this study is explained. Its foundational premises are explicated and the theory is linked to pricing concepts derived from conventional price theory. In this way advances in economic science are preserved without denying knowledge of pricing accumulated through other research traditions. Secondly, a conceptual model of resource- advantage pricing is presented to provide a basis for discussion, implications, and directions for future research. The paper ends by suggesting that, due to an increasing velocity of change in markets (Day, 2011), pricing in the real world will become more future-focused, and to improve the pragmatism in the nature of the pricing problems studied by academia, more interaction between strategic management and pricing research is needed to develop knowledge on how to strategically manage pricing and its increasingly complex challenges.
Given that consumer perceptions influence value of the firm’s market offering (Hunt & Morgan, 1995) organizations need to surmount information asymmetry by promoting adoption of market driven culture throughout the organization. In doing so, organizations are better placed to proactively respond to market needs and reduce threats from competition through delivery of superior customer value. It is however, important to note that resourceadvantagetheory has been criticized for lack of evidence to justify its claims for superior explanatory and predictive power. For this reason, more empirical studies are necessary to test the propositions of the theory.
The paper presented a method of expansion of the function of the form y = x x n , ∈ , n ∈ to the numerical series. The disadvantages of this method are sophisticated form of expression and the complexity of calculating the value of these expressions of the some variables. Advantage of this method is the possibility of the suc- cessful application of this method in the solution of some problems in number theory, the theory of series, due to the differences from the common theory, displayed the difference from binomial expansion, presented example for exponential function representation by means of method from Section 2. The paper doesn’t consist the all combinations of power function representation (by means of the function  property and transformation ). In the Application 1 are shown program codes for the most important expressions (by authors’ opinion). Future research in this direction could result the success polynomial kind expansion.
A customer’s decision to be loyal or not to be loyal is the sum of many small encounters with a company and it is the company employees who control these small encounters (Horibe, 1999). Therefore, it is necessary to achieve employee satisfaction to practice customer-centric strategic management. Walker and Stopper (2000) have emphasized that HR practices influence organizational performance and competitive advantage, and those organizations which deploy good human resource management practices reap the benefits. But, even a highly successful company with a strong record of excellence in human resource management practices cannot achieve allround success (Gratton, et. al., 1999) because changes take place slowly in the area of human resource management (Truss, 2001). Moreover, firms may observe and fairly easily imitate individual practices, the whole HRM system is much more difficult to imitate (Barney and Wright, 1998) and it is the overall system of HRM practices that contributes to the firm generating a competitive advantage (Bjorkman and Budhwar, 2007).
To continue to thrive, SHRM must remain sensitive to shifts in the business environment. For example, commercialization has been seen as the linking pin bridging the gap between SHRM in the private sector and SHRM in the public sector. In the future, other factors such as radical shifts in strategic orientation like what is taking place in the U.S. intelligence community (FBI, CIA, Homeland Security) or the increased reliance on knowledge work (designing policies for sustainable resource management and to combat global warming) may suggest new commonalities between effective public and private SHRM policies, practices, and orientations. Along a different track, new paradigms in related ﬁ elds are expected to in ﬂ uence research in SHRM. While the resource based view of the ﬁ rm has certainly been adopted as a foundation for recent conceptualizations, SHRM scholars have only scratched the surface in applying this perspective. For example, if universal ‘ best practice ’ bundles of HRM policies and practices are identi ﬁ ed, what can prevent them from being imitated by rivals and thereby lose their ability to promote competitive advantage? Or, if training and development practices are successful in reducing causal ambiguity surrounding pivotal organization routines and enabling them to be more readily replicated from one unit to another, do these training and development practices simultaneously make the routine more readily transferred beyond the ﬁ rm's boundaries?
An evolution of agency theory is stakeholder theory, which posits that other parties besides the business owners have a vested interest in the organization (Adamson, 2012; Jensen, 2010; Lan & Heracleous, 2010; Mainardes, Alves, & Raposo, 2011) and whose interests must be taken into consideration by organization owners and managers. Stakeholder theorists view the organization in a holistic sense, providing benefits for a wide range of parties (the stakeholders) who have a vested interest in the organization’s growth and success (Cuevas-Rodriguez, Gomez-Mejia, & Wiseman, 2012; Lan & Heracleous, 2010; Parmar et al., 2010). Stakeholders can be parties both inside and outside of the organization such as employees, suppliers, and customers. Stakeholder theorists specify that owners and managers must consider the interests of all parties when formulating business strategies. Wilkin (2012) noted stakeholder input into IT use and deployment is part of the structure of IT governance. Stakeholder theory has been growing in influence due to increased attention given to business morals and community service collectively known as corporate social responsibility (Parmar et al., 2010;
Even in the Nation has an absolute disadvantage or less efficient than another nation in the production of both the commodities there is still a basis for mutually beneficial trade if the less efficient nation specializes in the production of and exports the commodity in which its absolute disadvantage is lesser. Comparative advantage and protectionism to the chamber of disputes we are subject to the intolerable, competition of a foreign rival who enjoys such superior facility for the production.
Although literature sources on Information technology and firm performance are rich with insights and macro-theoretical developments, empirical studies find that the firm micro- dynamics on how Information technology integrates with strategy and firm performance is lacking at micro-level. From this it is evident that a clear understanding of the internal dynamics of organizations is required so as to explain the productivity paradox associated with IT Integration and how financial services firms shall be or are able to navigate the dynamism and environmental turbulence that characterize their industry. Organizations that are able to manage this turbulence are expected to have superior firm performance. Arising from the above therefore this study sought to investigate the relationship between IT integration, Business Operations Strategy, Firm Characteristics and Firm Performance of Commercial Banks and Micro Financial Institutions (MFI). The specific objectives were; examine the relationship between IT Integration, Business Operation Strategy, effect of Business Operations Strategy, influence of Firm Characteristics on IT Integration, Business Operations Strategy and Firm Performance and lastly to investigate and establish the joint effect of IT Integration, Firm Characteristics, Business Operations strategy is greater than the effect each individual variable on the Firm’s Performance. Dynamic capabilities theory is used as the foundational theory, supplemented by strategic alignment theory and the resources based theory. The research design was cross sectional descriptive survey. The results findings show a statistically significant direct relationship between IT integration and business operations strategy on firm performance. The results also show that relationship between IT integration, business operations strategy and firm performance is moderated by firm characteristics. This study contributes to understanding of the link between IT integration, business operations strategy and firm performance, while at the same time confirms the findings of previous studies that have found a significant positive link between IT integration and firm performance, and thus help in unravelling the related productivity paradox that has been associated with IT. The conclusions from this study demonstrates the substantive re-theorizing of IT Integration from a functional imperative to a business strategy level. In conclusion a well-organized IT integration strategy for financial institutions is indeed its business strategy to counter external financial technology companies, and therein orchestrate its own internal financial technology strategy.
The financial resource allocation for higher education has fluctuated over the last decades. Beginning in 1970, an amount of 7.6 million Libyan Dinar (LYD) was spent on Libyan education overall. The next year (1971) this amount more than doubled to LYD 17.9 million, and increased again to LYD 35.1 million in 1972, thereafter rising steadily throughout the 1970s and early 1980s. One possible cause for this dramatic increase was as a result of the sharp rise in global oil prices and a massive increase in government revenues in 1973 and 1979, which brought unprecedented changes within Libyan society. However, as a consequence of the global economic recession of the late 1980s, financial resources provided by the public treasury diminished, and the budget expenditure on the education sector decreased significantly from 1986 to 1999, as a result of lower oil prices in the mid-1980s. It fell to its lowest level of LYD 17.8 million in 1993, the same as it had been 20 years earlier. After that, it again started increasing sharply to 62.5, 308.1, 216, and 230 million LYD for the years 1995, 2000, 2002, and 2006, respectively (Otman & Karlberg, 2007). Along with the change in the country’s political scenario, public spending reached more than 2 billion LYD in 2013. (Ministry of Finance, 2013)
bearable, tolerable, liveable, supportable, passable, acceptable, justifiable, negotiable and penetrable. For example, if the organisa- tion is to protect its existing value added against its competitors then the term “sus- tainable” associates itself with “endurable” and “defensible”. Most discussions of sustain- able competitive advantage focus on defen- sive strategies based on existing resource strengths. For example, Grant (1995) consid- ers the sustainability of the competitive advantage along the dimensions of durability, mobility and replicability. Durability deter- mines how long the competitive advantage can be sustained and is considered in terms of the ability of competitors to imitate through gaining access to the resources on which the competitive advantage is built. This in turn can be considered in terms of mobility, referring to the extent to which resources can be transferred between com- petitors together with replicability which describes the ease with which resources can be copied by competitors. An example, where durability, mobility and replicability are particularly pertinent, relates to many retail- ers who derive their competitive advantage through identifying, acquiring and maintain- ing well-located outlets in addition to the value added stemming from their services and offerings. While the importance of defen- sive strategies in protecting and exploiting existing resource strengths cannot be under- estimated, securing the long term future of an organisation must consider how to derive unique areas of value added in the future. For this purpose sustainability has to assume a different meaning which points itself towards penetrability, for example, in terms of new breakthroughs. This is because the speed at which the uniqueness of the resources of an organisation becomes accessible dictates the speed at which the competitive advantage of an organisation diminishes. In fast-moving competitive environments, sustaining com- petitive advantage involves creating safe- havens from cut-throat competition by con- tinuously creating gaps through unique resources that cannot be easily bridged by the competitors (Chaharbaghi and Nugent, 1996).
2) Stewardship Theory: The Stewardship theory presents a contrasting view to agency theory. This theory asserts that, there will not be any major agency costs, since managers are naturally trustworthy . According to the perspective of the 'stewardship theorists, managers are inherently trustworthy and faithful stewards of the corporate resources entrusted to them. Managers are good stewards of the organization and it is in their own interest to work to maximize corporate profits and shareholder returns. Therefore, proponents of stewardship theory argue that firm performance is linked to a majority of inside directors and combined leadership structure . Stewardship theory sees a strong relationship between managers striving to successfully achieve the objectives of the firm, and the resulting satisfaction accorded to investors or owners, as well as other participants in the enterprise . A virtuous circle is evident in stewardship theory, where stewards protect and maximize shareholder wealth through firm performance, which results in maximizing the stewards’ utility. Therefore, by improved firm performance, the organization satisfies most groups that have an interest in the organization. Thus, stewardship theory supports the need to combine the role of the chairman and CEO, and favor boards consisting of specialist executive directors rather than majority non-executive directors.
Indian Economic scenario is undergoing basic structural changes affecting all the walks of life. Physical, Behavioral, and psychological changes and differences among the individuals has increased with rapid changes taking place in management process of the organization (K. Krishna Kumar, 2009). The researches have indicated these kinds of structural changes which give a view of preferences of today’s organization in India towards better management process and practices. There have been research studies indicating, that in Indian organization traditional philosophy of management is being practiced, which focuses on managerial control and has always dominated (Anil Kumar Singh 2005). It has been clear that HRM is undergoing change in the Asian region but the outcome is unclear. However a system based on mix of both the Asian characteristics and western rationale may emerge (Pawan S. Budhwar & Yaw Debrah, 2004). Also in a research finding on Indian firms indicated that organizations no more perceive pay/compensation as a sole motivator for employee performance and thereby high performance. The study also establishes the significant role of HRM in sustained competitive advantage (Deepika Faugoo, 2009). Apart from pay and compensation there are other HRM factors which need to be looked upon. The effectiveness of even the highly skilled employees will be limited if they are not motivated to perform, and HRM practices can effect employee motivation through its influence over employees skill and through organizational structures that allows employees improve how their jobs to be performed. (Mark Huselid, 1995). Also stated that HRM practices are expected to positively affect the turnover and productivity and if the return from investment in superior HRM practices exceeds their true costs then lower employee turnover and greater productivity should in turn enhance the corporate performance. The inferences could be drawn from this is that employee turnover and productivity has some influence on the organizational financial performance. This point towards better and superior HRM practices, i.e. and transformation from traditional HRM to SHRM. The view is also supported in a research done by Mousumi Bhattacharya*, Donald E. Gibson, D. Harold Doty.
percentage of realization of cash out of sales proceeds and the higher the ratio, the better will be the management of cash or idle cash will be minimized and this will have a positive effect on profitability. A firm desires to have an optimal level of liquidity as too much liquidity has an adverse effect on profitability and equally low level of liquidity has effects on profitability as well. In the Baumol Theory (1952), a cash management model was designed for determining firm’s optimal balance under certainty. The model assumed that the firm is able to forecast its cash needs with certainty and that cash payments are uniform over a period of time. Uniformity of cash flows is a contradiction of the reality in that it is almost impossible to have uniform cash flows as financial requirements of firms differ. Liquidity is a vital aspect of firms and this is consistent with Mathuva (2010) when he explained that more profitable firms take the shortest time to collect cash from customers. It must be ensured that the three constructs are maintained at the optimal level because having them in excess or having inadequacy of these constructs may cause adverse effects to returns of the firm.
The study goes beyond previous analyses in a number of ways. First, it builds an available estimates of nominal rates of protection for rice and barley in Korea (Anderson, 1981) by calculating effective rates of protection as well as domestic resource cost ratios for each year from 1964 to 1980, and for five different farm size groups. Second, it adds to available studies of domestic resource costs of rice production in the Philippine, Taiwan, Thailand and the United States (Food Research Institute Studies, 1976). The present study is less limited than the earlier ones, however, in that the latter provide estimates only for
It is important to note that the advantage of making risk decision of gas emergency event by Bayes Theory as compared with that by experience is that: Bayes Decision Theory integrates prior distribution and sampling distribution into a posterior distribution (empirical distribution of revised gas) and then selects the decision plan, in which posterior distribution is the starting point, with the judgment of loss state by making full use of prior information (statistical information of previous gas emergency event, namely original empirical documentation), data information (sampling information, namely the newly-gained information related to gas) and modeling information (mathematical model). The decision plan shall be in continuous recursion and closer to correct decision plan with certain information where the sampling information of gas keeps being updated. Where, the judgment of loss can be conducted by creating reasonable loss function or relying on the empirical analysis of experts or decision makers. Since Bayes Decision Theory of gas emergency event is an inference method based on the uncertainty of probability, existing information networks (e.g. monitoring system) can be used, combining with judgment methods adopted by experts, to set up an intelligentized decision system, which shall make optimal decision in the early stage of gas emergency event and reduce the drawback of making decision purely by experience.
Responsiveness to knowledge has also been defined based on the perspective of market orientation (Kohli & Jaworski, 1990; Narver & Slater, 1990; Kohli et al., 1993), the RBV (Zaheer & Zaheer, 1997; Hult et al., 2005), dynamic capabilities (Wei & Wang, 2011) among others. From a market intelligence perspective, responsiveness is established by the generation and sharing of information, while from an organizational culture perspective, responsiveness is constructed from three behavioural elements: orientation to customer needs; actions of competitors; and inter-functional combination (Homburg et al., 2007). Researches on responsiveness to knowledge that have been supported by the RBV have highlighted the importance of the strategic use of information systems as a resource for action in response to the changing business environment (Zaheer & Zaheer, 1997; Hult et al., 2005). Despite the use of RBV in theoretical research in management, critics have pointed out its limitations in explaining how and why certain firms achieve a competitive advantage in dynamic environments. Strategic management theorists argued that in such markets, dynamic capability perspective can make major contributions (Eisenhardt & Martin, 2000; Ngo & O’Cass, 2012). Arguments in support of dynamic capabilities consider capabilities as those processes by means of which companies integrate, create and reconfigure internal and external resources and competencies in deals that allow their fit to changes in the business environment (Day, 2005).
Since its introduction into the strategic management literature, the resource based view (RBV) of the firm (Wernerfelt, 1984; Barney, 1986; 1991; 2001; Conner, 1991) has earned great attention among scholars as a framework for explaining the conditions under which a firm may gain sustained competitive advantage. Strategy researchers have emphasized the importance to consider the opportunities and constraints faced by firms as a result of their resource base as well as the industry characteristics when investigating a firm’s decision concerning it growth (Delios & Beamish, 1999). Wernerfelt (1984) introduced the notion that firms should be analyzed from the resource side at the level of the firm, not just from the product side at the level of industry while Barney (1986,1991) argues that a firm has the potential to generate sustained competitive advantage from resources that are valuable, rare, inimitable, and non substitutable (VRIN). These resources can be viewed as bundles of tangible and intangible assets, such as a firm’s management skills, its organizational processes and routines, and the information and knowledge under its control (Barney, Wright and Ketchen, 2001) tied semi permanently to the firm (Wernerfelt, 1984). To distinguish resources as inputs and capabilities within the firm to enable it to select, deploy, and organize them, the concept of “dynamic capabilities” was coined to mean ‘firm’s processes that use resources to integrate, reconfigure, gain and release other resources to match and create market change. Therefore, dynamic capabilities are organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve and die (Eisenhardt & Martin, 2000).
Enterprise Resource Planning (ERP) systems are highly integrated software packages that automate core corporate activities such as finance, human resources, manufacturing and supply and distribution. They superseded manufacturing resource planning or materials requirements planning (MRP) systems towards the end of the 1980s and have become the strategic de facto standard in many companies over the past five years. AMR Research (1998) state that market for ERP systems in 1997 was worth $15.68 billion and that this is likely to increase at a compound rate of 36% to $72.63 billion by the year 2002. Furthermore, Deloitte and Touche LLP (1997) state that ERP is now the preferred method by which businesses replace legacy systems. The market is dominated by five major players SAP, Oracle, Baan, Peoplesoft and JD Edwards, who in 1996 accounted for over 60% of the market (Edmondson Baker and Cortese 1997). The rest of the market is occupied by smaller vendors that have either focussed upon smaller companies or that have been swamped by the leaders. The consultancy associated with the implementation of ERP systems is also a large market currently standing at around the $30 billion mark (Baker 1998). The sectors adopting ERP solutions are diverse. Implementations are currently in progress throughout industries such as chemicals, retail, electronics, IT, textiles and the public sector in areas such as health care and higher education. The major reason for the shift towards ERP/standard packages has already been noted - the need to deal with legacy systems. Many existing systems have become so difficult and costly to maintain, inflexible and misaligned with business strategy that firms have taken a clean slate approach towards their IT strategy. There are two key reasons for the occurrence of this situation. First, markets and industries have become more international requiring organisations to adopt business and IT strategies that are congruent with this. Only five years ago software was usually purchased and implemented locally but now as companies are having to manage international operations international systems and strategies are the imperative (Newing 1998a). However, the systems and structures present within these organisations could not be modified to support this need thereby creating misalignment. The second reason for the shift towards standard systems is concerned with the year 2000 problem (Taylor 1998). As many organisations had developed their systems over a long period of time, the IT legacy systems have become characterised by high levels of entropy and degradation meaning that making them year 2000 compliant would be difficult.