Emerald | Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness | Table of Contents

Global economic challenges: the pressing and visible issues

literatinetwork@emeraldinsight.com (Abbas J. Ali) — Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to identify the economic challenges that nations and the international community must grapple with. It also clarifies certain factors that could ease the occurrence of global economic problems. Design/methodology/approach – The paper briefly discusses problems that currently impede global economic growth and identifies factors that are essential to minimizing the emergence of these problems. Findings – The reoccurrence of global economic problems is not a passing phenomenon, but it is rooted in sociopolitical and economic environments prevailing in the world. When these problems appear, regional and global responses are needed. Under these circumstances, insightful and creative thinking free of nationalistic passions and rooted in the belief of shared benefits and fate may prove to be effective. Originality/value – The paper offers a genuine reflection on today's global economic reality. It sets the stage for an effective argument to counter the voices that seize on current global economic difficulties and meltdowns to give the impression that the global community is unable to cope with prevailing global economic problems.

Innovation in clusters: effects of absorptive capacity and environmental moderators

Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to empirically explore the impact of absorptive capacity (AC) on explorative and exploitative innovation in business cluster settings, and the environment's moderating role on these relationships. Design/methodology/approach – Using a sample of Central European companies, the paper applies multivariate data analysis techniques to test the effect of AC on innovation performance and potential moderators, respectively. Findings – The empirical evidence indicates that AC impacts both explorative and exploitative innovation, and that the strength of the impact depends on the business clusters' level of dynamism and competitiveness. Environmental dynamism and competitiveness positively moderate the effect of AC on explorative innovation, and negatively moderate the effect of AC on exploitative innovation. Research limitations/implications – Several research limitations apply. First, only one interview per firm was conducted on a self-reporting basis. Second, the survey's focus was on SMEs. Third, questionnaire translations and differing interviewer behaviour may bias the results. Practical implications – The findings suggest that firms in business clusters must develop AC to gain the fruits of agglomeration effects. Furthermore, attention should be paid to the cluster's environmental conditions, since dynamism and competition play a significant role for innovation. Originality/value – Although the importance of AC has often been highlighted, much more remains to be understood about its role in business cluster settings. This issue is addressed in this work by providing systematic, empirical evidence on how AC affects innovation performance at the firm level, and on how this relationship depends on the business cluster's environmental characteristics.

Lean production and business performance: international empirical results

literatinetwork@emeraldinsight.com (Dávid Losonci, Krisztina Demeter) — Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to identify factors that considerably impact business performance of lean manufacturers (companies with extensive use of lean tools and excellent operational performance). Design/methodology/approach – IMSS IV (International Manufacturing Strategy Survey) data bank is used for statistical analysis. It contains 711 valid observations from 23 countries from the time period between 2005 February and 2006 March. Out of the 711 responding organization data of 453 firms are analyzed. Quantitative analyses are done by cluster, ANOVA, and regression analyses. Findings – Many factors influencing business performance of lean producers are outside of the scope of Operations Management (e.g. market dynamics, new entrants, and customization). Production's contribution to business performance is limited to product/service positioning, supplier and capacity management. Research limitations/implications – The most important limitation is that the database used in the study was created for more general purposes. Although our results do not show any difference among industries, we only consider cultural impact at regional level. The explanatory power of our model reveals that we could have overlooked many important factors (e.g. innovation capability of business unit, firm role in the supply chain), so further research (e.g. review of strategic management literature) is required to enhance the reliability of variables. Originality/value – Empirical results regarding improvements in business performance of lean companies are ambiguous. The study highlights key areas of lean production that contribute to superior business performance. It will help managers to explore both operational and business benefits of lean implementation.

An analysis of the telecommunication industry in the Sultanate of Oman using Michael Porter's competitive strategy model

literatinetwork@emeraldinsight.com (James Rajasekar, Mueid Al Raee) — Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – Michael Porter's Five Forces Model provides an ideal mechanism and framework to study the Oman telecommunications industry's competitive structure. The purpose of this paper is to use this model to identify the competitive forces that affect it the most. Design/methodology/approach – This paper is based on empirical research. The data were collected primarily from secondary sources such as published interviews of chief executive officers of the telecommunication companies in Oman, government reports, and Telecommunication Regulatory Authority of Oman (TRA). The authors then used Michael Porter's five forces model to investigate the competitiveness of the telecommunication industry in Oman. Findings – The analysis shows that the strongest competitive forces in the industry are rivalry among competitors and threat of substitutes. While the threat of entry and power of buyers also having a significant impact, the power of suppliers is of very limited impact. Hence, the five forces model impacts uniformly on all the players in Oman's telecommunication market and have important strategy implications for them all. The results of this analysis are then used as a critical tool to formulate effective strategies for industry players in the face of the changing dynamics of telecommunication services industry in Oman. Originality/value – This study is one of the few papers that attempted to study the telecommunication industry in Oman in depth. However, this is the first research study that investigated the competitive landscape of this industry using an established framework such as Michael Porter's five forces model. As such, the study brought to light new insights and paradigms in competing in the telecommunication industry in Oman. This study also suggests new strategic directives to the incumbents, new entrants, buyers and suppliers.

Intellectual capital: company's invisible source of competitive advantage

literatinetwork@emeraldinsight.com (Nixon Kamukama) — Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to examine the individual contribution of intellectual capital elements to competitive advantage. It aims to explore the extent to which intellectual capital elements can explain competitive advantage in Uganda's microfinance industry. Design/methodology/approach – Hierarchical regression was used because of its capacity to indicate precisely what happens to the model as different predictor variables are introduced. Findings – This study confirms that the three intellectual capital elements are strong predictors of competitive advantage and they account up to 44 percent of variance in competitive advantage. Their order of importance in explaining the variance in competitive advantage (basing on their standardized beta values) is: structural capital, human capital and relational capital. Research limitations/implications – Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate. Furthermore, the findings from the present study are cross-sectional, future research should be undertaken to examine the effects of these variables across time. Practical implications – The managers of microfinance firms need to appreciate that the rise of intellectual capital in the industry is unavoidable, given the competitive and technological forces that are sweeping the twenty-first century. Originality/value – This is the first study that focuses on testing the individual influence of intellectual capital elements on competitive advantage in Uganda microfinance industry.

Corporate social responsibility: Perception, practices and performance of listed companies of Kingdom of Saudi Arabia

literatinetwork@emeraldinsight.com (Nisar Ahamad Nalband, Mohammed S. Al-Amri) — Fri, 24 May 2013 00:00:00 +0100

Abstract

Purpose – The world is becoming global, digital, health conscious and spiritual. In this new and evolving international environment with a large private sector and global integration of world capital markets, Corporate social responsibility (CSR) has become the prominent topic of institutional reform. This issue of CSR is of great importance as the Saudi economy is opening up and the government is trying to diversify its investments and reduce its reliance on the petroleum sector. The proposed research study is aimed at identifying perceptions of managers, company practices and performance of companies concerning CSR practices of 21 listed companies in Saudi Arabia. Design/methodology/approach – From each company, ten managers were chosen randomly totaling two hundred and ten respondents. Primary and secondary data was collected for the study. Primary data were collected by conducting interviews and discussions with management respondents through questionnaires structured for the purpose. Findings – The empirical findings in the KSA study support the applicability of Carroll's Pyramid of CSR constructs and Lawrence et al.'s charity and stewardship principles. Research limitations/implications – There is excellent scope for future research on the current topic and in improving the instruments, measures and constituent concepts of CSR constructs in order to provide better guidance to policy makers and managers, as well as academic interest. Originality/value – Saudi Arabia is known for its charity and stewardship principles, but not much empirical work based on CSR constructs has been done. Hence, this study attempts to measure perception and construct validity.

Reverse innovation: create Far from Home, Win Everywhere

Fri, 24 May 2013 00:00:00 +0100

Antifragile Things That Gain From Disorder

Fri, 24 May 2013 00:00:00 +0100