Validating Knowledge/Technology Effects to Operative Sustainable Competitive Advantage

Josu Takala, Jari Koskinen, Yang Liu, Mehmet Serif Tas and Matti Muhos
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Josu Takala: University of Vaasa, Finland
Jari Koskinen: University of Vaasa, Finland
Yang Liu: University of Vaasa, Finland
Mehmet Serif Tas: University of Vaasa, Finland
Matti Muhos: University of Vaasa, Finland

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Abstract: Purpose: This paper aims to present a fresh idea on how to model and examine the level of sustainable competitive advantage (SCA) with and without knowledge/technology (K/T) effects in a case company’s operation by taking the manufacturing strategy’s development directions and the efficiency of resource allocation among its attributes into consideration. Design/Methodology/approach: In this paper, questionnaires are filled by two different managerial groups, company’s global business directors (G1) and company’s directors in global operation strategies (G2). The analyses based on G1, G2 and G1-G2 (mixed results) are performed and examined as well as the effect of knowledge/technology rankings to observe the differences on how they effect on company’s operations strategy and what kind of a strategy type that decision makers might fallow. Besides, the effects of knowledge/technology rankings on SCA risk levels are examined on different case companies to perceive the similarities and differences with our case company. In this case study, the objectives are achieved based on several methodologies: manufacturing strategy index (MSI) (Takala, et al., 2007) and sense and respond (S&R) methodology (Liu, et al., 2011). Findings: The achieved results through the model are found to be promising corresponding to the feedback from the respondents. Research limitations/implications: The model is applied only in a medium sized B2B global company that produces power electronics products. Therefore, further tests need to be applied to the model in case of multiple companies from different sizes and areas to figure out the best formula in case of validation of strategic direction (MAPE, RSME or MAD). Practical implications: As a result of its wide applicability and its ease in arrangement the model has an enormous potential for strategic decision-making process and strategic analysis. Originality/Value: The model can provide a more dependable possibility of sustainable improvement to the corporate operational excellence and strategy.

Keywords: Sustainable competitive advantage (SCA); knowledge/technology rankings; manufacturing strategy; sense and respond (S&R); operational excellence; operations management. (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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